Candlesticks 5: Candlestick Pattern Dictionary
Note: This post is taken directly from StockCharts's ChartSchool.
There's many other patterns that I didn't mention and, while they are not as popular or importan, I believe it is useful to have an idea of what each pattern may signal. So here's a list of over 30 patterns and a small descriptión of what they mean. Enjoy!
Abandoned Baby: A rare reversal pattern characterized
by a gap followed by a Doji, which is then followed by another gap in
the opposite direction. The shadows on the Doji must completely gap
below or above the shadows of the first and third day.
Dark Cloud Cover: A bearish reversal pattern that
continues the uptrend with a long white body. The next day opens at a
new high then closes below the midpoint of the body of the first day.
Doji: Doji form when a security's open and close are
virtually equal. The length of the upper and lower shadows can vary, and
the resulting candlestick looks like, either, a cross, inverted cross,
or plus sign. Doji convey a sense of indecision or tug-of-war between
buyers and sellers. Prices move above and below the opening level during
the session, but close at or near the opening level.
Downside Tasuki Gap: A continuation pattern with a
long, black body followed by another black body that has gapped below
the first one. The third day is white and opens within the body of the
second day, then closes in the gap between the first two days, but does
not close the gap.
Dragonfly Doji: A Doji where the open and close price
are at the high of the day. Like other Doji days, this one normally
appears at market turning points.
Engulfing Pattern: A reversal pattern that can be
bearish or bullish, depending upon whether it appears at the end of an
uptrend (bearish engulfing pattern) or a downtrend (bullish engulfing
pattern). The first day is characterized by a small body, followed by a
day whose body completely engulfs the previous day's body.
Evening Doji Star: A three day bearish reversal pattern
similar to the Evening Star. The uptrend continues with a large white
body. The next day opens higher, trades in a small range, then closes at
its open (Doji). The next day closes below the midpoint of the body of
the first day.
Evening Star: A bearish reversal pattern that continues
an uptrend with a long white body day followed by a gapped up small
body day, then a down close with the close below the midpoint of the
first day.
Falling Three Methods: A bearish continuation pattern. A
long black body is followed by three small body days, each fully
contained within the range of the high and low of the first day. The
fifth day closes at a new low.
Gravestone Doji: A doji line that develops when the Doji is at, or very near, the low of the day.
Hammer: Hammer candlesticks form when a security moves
significantly lower after the open, but rallies to close well above the
intraday low. The resulting candlestick looks like a square lollipop
with a long stick. If this candlestick forms during a decline, then it
is called a Hammer.
Hanging Man: Hanging Man candlesticks form when a
security moves significantly lower after the open, but rallies to close
well above the intraday low. The resulting candlestick looks like a
square lollipop with a long stick. If this candlestick forms during an
advance, then it is called a Hanging Man.
Harami: A two day pattern that has a small body day
completely contained within the range of the previous body, and is the
opposite color.
Harami Cross: A two day pattern similar to the Harami. The difference is that the last day is a Doji.
Inverted Hammer: A one day bullish reversal pattern. In
a downtrend, the open is lower, then it trades higher, but closes near
its open, therefore looking like an inverted lollipop.
Long Day: A long day represents a large price move from open to close, where the length of the candle body is long.
Long-Legged Doji: This candlestick has long upper and
lower shadows with the Doji in the middle of the day's trading range,
clearly reflecting the indecision of traders.
Long Shadows: Candlesticks with a long upper shadow and
short lower shadow indicate that buyers dominated during the first part
of the session, bidding prices higher. Conversely, candlesticks with
long lower shadows and short upper shadows indicate that sellers
dominated during the first part of the session, driving prices lower.
Marubozu: A candlestick with no shadow extending from
the body at either the open, the close or at both. The name means
close-cropped or close-cut in Japanese, though other interpretations
refer to it as Bald or Shaven Head.
Morning Doji Star: A three day bullish reversal pattern
that is very similar to the Morning Star. The first day is in a
downtrend with a long black body. The next day opens lower with a Doji
that has a small trading range. The last day closes above the midpoint
of the first day.
Morning Star: A three day bullish reversal pattern
consisting of three candlesticks - a long-bodied black candle extending
the current downtrend, a short middle candle that gapped down on the
open, and a long-bodied white candle that gapped up on the open and
closed above the midpoint of the body of the first day.
Piercing Line: A bullish two day reversal pattern. The
first day, in a downtrend, is a long black day. The next day opens at a
new low, then closes above the midpoint of the body of the first day.
Rising Three Methods: A bullish continuation pattern in
which a long white body is followed by three small body days, each
fully contained within the range of the high and low of the first day.
The fifth day closes at a new high.
Shooting Star: A single day pattern that can appear in
an uptrend. It opens higher, trades much higher, then closes near its
open. It looks just like the Inverted Hammer except that it is bearish.
Short Day: A short day represents a small price move from open to close, where the length of the candle body is short.
Spinning Top: Candlestick lines that have small bodies
with upper and lower shadows that exceed the length of the body.
Spinning tops signal indecision.
Stars: A candlestick that gaps away from the previous
candlestick is said to be in star position. Depending on the previous
candlestick, the star position candlestick gaps up or down and appears
isolated from previous price action.
Stick Sandwich: A bullish reversal pattern with two
black bodies surrounding a white body. The closing prices of the two
black bodies must be equal. A support price is apparent and the
opportunity for prices to reverse is quite good.
Three Black Crows: A bearish reversal pattern
consisting of three consecutive long black bodies where each day closes
at or near its low and opens within the body of the previous day.
Three White Soldiers: A bullish reversal pattern
consisting of three consecutive long white bodies. Each should open
within the previous body and the close should be near the high of the
day.
Upside Gap Two Crows: A three day bearish pattern that
only happens in an uptrend. The first day is a long white body followed
by a gapped open with the small black body remaining gapped above the
first day. The third day is also a black day whose body is larger than
the second day and engulfs it. The close of the last day is still above
the first long white day.
Upside Tasuki Gap:A continuation pattern with a long white body
followed by another white body that has gapped above the first one. The
third day is black and opens within the body of the second day, then
closes in the gap between the first two days, but does not close the
gap.
17 comentarios
This comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDelete