A candlestick chart is a visualization tool widely used by traders for technical analysis. Each trading period (whether that’s five minutes or a day) is represented by a candlestick (or candle) that shows the relative positions of four price points for that period: the high price, the low price, the opening price, and the closing price. To show this, each candlestick comprises a ‘real body’ and a ‘shadow’ (or ‘wick’): Changes in the length of the real body and the upper and lower shadows reveal the price action and give an insight into the emotion in the market. Bullish, or ‘up’, candlesticks are usually green or white. Bearish, or ‘down’, candles are usually red or black.
The bearish kicker is a two-candle pattern that starts with a large bullish candlestick higher (white or green depending on the charting platform) then a second large bearish candle that gaps lower in price and keeps going to the downside.
The gravestone doji candlestick pattern is a three-candle pattern. It is created when a big bullish candle is followed by a candle with a long wick that has opening and closing prices in the time frame close to the same and price ends near the low of the time frame.
A shooting star candle or pin bar reversal is a bearish candlestick pattern when it appears during an uptrend on a chart
A hanging man is one kind of bearish reversal candlestick pattern. The hanging man is the name of a signal candle that is located inside an uptrend of higher highs and higher lows in price on a chart.
The three white soldiers is a very bullish chart pattern that is created with candlesticks when there are three big candles formed in a row with higher highs and higher lows in a row. This pattern needs three data points across a timeframe to signal momentum and a high probability that a market will shift in an uptrend from rangebound or a downtrend if that was the price action behavior before this pattern.
The bearish abandoned baby is a three-candle pattern following an upswing in price. It is created by a big bullish up candle, followed by a gap up doji, and then a big bearish candle after a gap down in price.
The morning star candlestick pattern is created by three candlesticks that show a bullish reversal from the lows in price. Morning star patterns generally form in price during a downtrend on a chart. It is a signal for a high probability that a low is in and that price is likely to begin to swing … Read more
The tweezer bottom candlestick pattern is created by two or more candles with matching lower lows. A tweezer bottom happens when two candlesticks form back to back or near each other with the exactly or almost the same lows
The piercing pattern candlestick chart is a two day price action pattern. It is created after one large down black or red candlestick followed by one large up white or green candlestick that opens below the low of the preceding candlestick but closes over halfway up into the previous black bearish body candlestick.
bullish harami is a minimum two candle chart pattern that can signal a downtrend in an chart may be starting to reverse. A bullish harami is commonly formed by a small bullish candle that has a price range inside the previous bearish candle that went lower. This pattern can appear to form during a price range but it has the most meaning when it occurs during a downtrend on a chart.