Candlestick chart patterns are one of the most commonly used technical analysis tools to analyze price structures. They have been used by investors and traders for centuries to determine which way the price is moving. In this article, we will talk about all the candlestick chart patterns with examples.

Introduction to Candlestick Chart Patterns

Friends, dears, the chain begins. First of all, I need to tell you what the candlestick event is, not the candle formation I talked about yesterday, because the building cannot stand without a solid foundation. First of all, let me say that what I am going to say about this subject is not new, it has been told thousands of times before by thousands of people.

Anyone who is interested in the stock market knows more or less. So this course is a “beginner” course. If you are advanced in technical analysis, you can skip this course. However, I must state that I am going to explain candles in a way that no one has told before, in detail and by adding other factors. So even if you are experienced, it is worth reading. I think you will see the benefit. Yes, I’m going, What are these candles?

How to Read Candlestick charts?

Candlestick charts are financial charts that visualize movements in any stock, commodity or pair. It is generally used on a daily basis. However, if you want, you can look from 1 minute to monthly. A candlestick looks like this:

Candlestick Chart

These candlestick charts were first used in Japan 100-110 years ago by a Japanese named Homma to analyze/track rice prices in the rice market. Homma started to monitor rice prices with 4 different pieces of information on a daily basis. The first information is the opening price of the product in the morning.

The other three pieces of information are where the supply and demand and constantly fluctuating prices see the highest and lowest points on the same day and where the price closes at the end of the day. With these 4 pieces of information, a candle is formed.

Each candle has two colors, either red or green. A red candle is formed if there is a decrease in price that day, that is, if the closing price is lower than the opening price. The green candle indicates bullishness. That is, the closing price is higher than the opening price. According to their color, candles are formed as follows.

The colored parts are called the body, and the lines are called the shadow (or tail). The body is the area between the opening and closing price. Shadows are the difference between the current low or high of the price and the opening or closing.

Shadow – Wick: The lines on the top of the candle are called lines or wicks. The green mumiki indicates that the upper shadow is the highest. However, it is the price that could not hold on to this value. Likewise, the bottom wick also shows the lowest impression of the price. In this end, knowing about the highs and highs of analyzing training programs is the most essential of analysis training.

Opening Price: The opening price is the price realized within a certain time. Indicates the daily, daily introductory price of the currency in question on the cryptocurrency exchange.

Closing Price: The closing price may have occurred at a similar time in history. The daily scheduling of the respective cryptocurrency refers to its monthly price per month.

Body: Represents at the top in candle holder formations. The body can move downwards or forward according to the previous candle. Dimension guides you in understanding trends and learning the tricks of technical analysis. We understand how long the body of the candle is not customary or on sale.

Cryptocurrency analysis allows us to interpret candlestick charts in variable variables. There are more than 60 candle formations. There are a number of candle formations approved by professional technical analysts on the cryptocurrency exchange. Knowing these forms gives us an advantage in trading cryptocurrencies. Trends play a big role in our predictions.

Candlestick Chart Patterns

In order to better understand the formation of the body and shadows of the candles, I will give an example in the figure below. The candle below is a bearish candle, colored red. The opening was from 3.22. During the day, the stock went up and saw 3.40. 3.40 was the peak of the day. 

Candlestick Chart Patterns

Then the stock went down, saw 2.82 at the bottom, but turned from there and closed the day with 2.90. Thus, the red part between 3.22 and 2.90 formed the BODY. Above and below, it cast a shadow over the low and high of the day.

So what meanings should we attach to these candles? Believe me, there are so many meanings to attach to candles. If we take just one candle, where is the high, low of the day, the wider the stem, the longer the shadows. They all make sense. Moreover, it is not just a single candle, there are candles that try to tell you something by combining with the candle in front of it, the candle behind it, and even 2-3 candles in front of it. This part is a little advanced. First of all, let me go over what a single candle can tell you.

Example 1. Let’s interpret the candle whose picture you see below. The candle is opened from 5.80. Buyers are strong in the early hours. They moved the stock up to 6.12. This is the highest point of the day. Something is going on here. Those who hold the stock start selling profits.

Candlestick Chart Patterns

Buyers and sellers balance here. Profit sales stall the stock’s rise. In lower candles (4-hour, hourly, 15-minute candles, for example) the stock slows down. New traders observing this from the outside see opportunity. Gradually, sellers are entering the stock and selling short. Traders who saw this return and joined the stock’s rise late are panicking, starting to sell their holdings, some with a small profit, some with a stop loss. Sales are increasing.

Look at the chart again, it is closing the day at 5.08, falling continuously from 6.12 throughout the day. Notice it’s the lowest of the day. Almost all day long, sales are increasing, sellers are strong. They drive the stock down almost until the end of the day. The day is closing, people like me who look at the daily-weekly closing charts come into play. For example, this candle catches my eye. I say “how nice, it’s turned up but serious sale has come, the day is closed from the bottom, the sellers are still willing, there is an opportunity here, the sale can continue.”

At the opening of the next day, I sniff the market and take a short position, until new buyers enter the stock below and the stock stabilizes. This adventure continues in a continuous loop. What does a single candle tell us?

Another example. The daily candle in the chart below. The closing is almost at the same level as the opening. There are serious long shadows above and below. The body is weak, frail. This is a complete unstable candle. The adventure begins like this: The paper opened in the morning with a price of 2.01 sees a sale.

Candlestick Chart Patterns

The stock drops as low as 1.88 with the effect of sales. Here, those who analyze the candles (or their indicators or their own strategies) in smaller periods see an opportunity, start buying (these are usually daytraders). The stock rises, when the rise starts, other buyers join the caravan, the rise accelerates.

In the paper that sees 2.36 in the day, the loggers start to take profit. When the stock slows down, everyone starts selling profits, the money is pocketed. Those who sense the return take a selling position and the sales get stronger.

The stock turns again and closes at 2.12, close to the opening level. This candle is a small body, powerless, long shadow candle. It does not give a message for the next day or period, it needs the direction of the next candle. The position is not taken.

Guys, I’m low on this, I can write until the morning. So I’m stopping here, take this as “introduction to candles lesson 1”, more to come. Thanks for reading, see you in “introduction to candles lesson 2”

35 Types of Candlestick Patterns:

Candlestick patterns can be divided into:

Continuation Patterns

Bullish Reversal Patterns

Bear Reversal Patterns

Below is the list of Types Candlestick Pattern categorized in the above categories:

Bullish Reversal Candlestick Patterns:

Bull Market refers to the trend in buying and selling prices associated with the bull market related trading. The income will increase when prices fall closer and money purchases, which follow a positive course, will increase.

Hammer  (Bullish Hammer)

Hammer, originally known as Bullish Hammer, is a bull candle formation with a long wick that beats the bottom level formed during the downtrend, with a short body and color difference. It is an indication that sellers are lowering prices when trading cryptocurrencies. Then a strong selling pressure follows the trend.

Do not start trading as soon as you see this candle formation. Follow the trend direction for a few days. If the opposite is the case, verify the trend by trading volume. You can buy if the next candlestick exceeds the hammer height.

Candlestick Chart Patterns: Hammer Candlestick

Piercing Pattern:

Piercing Candle Pattern is a bottom reversal pattern that occurs during a downtrend. As the bulls enter the market and push prices higher, it causes a trend reversal. The green candlestick opens lower than the close of the red candlestick. Bears, ie sellers, lose momentum in this price change. The trend initiates a bullish rise. Cryptocurrency can be bought if the next candlestick exceeds the high of the red candle.

Candlestick Chart Patterns:Piercing Candlestick pattern

Bullish Engulfing:

The Bullish Engulfing pattern, which consists of a large green candlestick enclosing the preceding red and smaller candlestick, is formed within a downtrend. Although it signals that the bear market continues, the bulls begin to lead the market within a certain time. Cryptocurrency buying pressure exceeds selling pressure. A buy can be made if the next candle opens above the big green candle.

Candlestick Chart Patterns:Bullish Engulfing

The Morning Star:

It is an important bottom reversal pattern consisting of three candlesticks. During a downtrend, the red candle confirms the downtrend. However, a small green candlestick developing on the downside indicates that the bear market is trying to push the price down. However, there is an inconsistency in bears in this process. There is an indecision. The third green candle starts an upward bull market. Cryptocurrency can be bought if the next candle in the Morning Star candlestick pattern exceeds the height of the third candle.

Candlestick Chart Patterns:The Morning Star

Three White Soldiers (Bullish Three White Soldiers )

The Three white Soldiers pattern, which resembles a ladder, is one of the most popular bullish patterns that give a clear bullish signal. The downtrend is valid in the relevant cryptocurrency exchange. Three standard-length green candlesticks are then lined up in a row to form a ladder. The uptrend of the first candle is supported by high closes on the other two candles. Cryptocurrency can be bought if the next candle to form exceeds the height of the third candle.

Candlestick Chart Patterns: Three White Soldiers

White Marubozu:

A White Marubozu candlestick pattern is when the closing price is equal to the highest price of the day and the opening price is equal to the lowest price of the day. This indicates that buyers have complete control of the market, from the first to the last trade of the day.

After the opening, prices rise continuously, resulting in a long white day with no lower shadow. Prices close at the highest price of the day. Therefore, the upper shadow does not form.

This candlestick is usually bullish. However, its position in the larger drawing is also very important. A long white candlestick can indicate a key support level after the price declines and a potential upside reversal.

Candlestick Chart Patterns: White Marubozu

Three Inside Up:

The three inside up candlestick pattern is a bullish momentum signal. It is formed by seeing a large body bearish candle, followed by a bullish candle inside the previous bearish candle, followed by a bullish candle closing above the second candle. The footprint is as follows:

Candlestick Chart Patterns: Three Inside Up

Bullish Harami:

In a double candlestick formation resembling a pregnant woman, it consists of a large red candlestick with a large body followed by a small green candlestick inside the red candle. It is a sign of incompatibility in the market. It also indicates that the downtrend may be coming to an end.

The word Harami means pregnant in Japanese. This pattern signals a reversal. A bear market weakens and a bull market prevails. A buy can be made if the next candle crosses the height of the big red candle.

Candlestick Chart Patterns: Bullish Harami

Tweezer Bottom:

The bottom Tweezer candle formation is a Tweezer candle formation that occurs in a downtrend. The first candle to form this Tweezer candle formation is a bearish candle with a relatively large body; The second candle should be a bearish candle with a relatively small body.

The lowest price levels reached by both candles, ie the lows, should be the same. When viewed in the context of the broad price chart, the bottom Tweezer candle formation occurring at market lows or near support and trend lines is quite reliable.

Candlestick Chart Patterns: Tweezer Bottom

Inverted Hammer:

It is a candlestick pattern that follows the downtrend, has a long upper shadow, and is at the bottom of the sea.

There should be no lower shadow or very small on this white candlestick chart.

The bear market is similar to the shooting star formation, but in the downtrend it is a bullish bottom reversal signal to be confirmed in the next session.

In other words, the Inverted Hammer is formed at the end of the downtrend and gives a bullish signal. Shooting Star, on the other hand, is formed at the end of the rising trend and gives a bearish signal. We will reinforce it with examples.

Candlestick Chart Patterns : Inverted Hammer

Three Outside Up:

It is a three-bar formation. With this formation in a downtrend, the signal that the market will return to an uptrend is received. It is a highly reliable candlestick formation.

Candlestick Chart Patterns: Three Outside Up

On-Neck Pattern:

The small body white candlestick chart in a downtrend is closing lower than the closing of the long black chart of the previous session. This pattern is a bear market continuation pattern.

The market resumes its trend when the low of the white candlestick is broken.

Candlestick Chart Patterns: On-Neck Pattern

Bullish Counterattack

The bullish counterattack pattern is a bullish inversion pattern that predicts the forthcoming inversion of the current downtrend on the lookout. This candle pattern is a two-bar pattern that shows up during a downtrend on the lookout. A pattern needs to meet the accompanying conditions to be a bullish counterattack pattern.

There should be a solid downtrend on the lookout for the development of the bullish counterattack pattern.

The principal candle should be a long dark flame with a genuine body.

The subsequent candle should likewise be a long (in a perfect world, equivalent in size to the main candle) however a white candle with a genuine body. The subsequent candle should close approach the end of the principal candle.

Candlestick Chart Patterns: Bullish Counterattact

Bearish Candlestick Pattern:

Hanging man:

We have explained that there is a Bullish reversal formation formed at the end of the Hammer downtrends. If this same pattern is formed at the end of an uptrend, they call it Hanging Man. In fact, it is no different from Hammer.

There is a serious uptrend just ahead. It comes into play as the last candle of the uptrend. The psychology of this candle is a little different. When you look at it, it actually looks like buyers have stepped in from below and pulled the price up, right?

However, we should read this candle as follows: While the uptrend continues, sellers step in and push the price down. Below, buyers meet the sell-off and push the price up slightly, but their strength is depleted and the day closes with a red body, lower than the opening.

Body red. This is an indication that the buyers are weakening and that the momentum of the trend is about to end. While this isn’t as strong as the Hammer, it’s a solid turn signal.

Candlestick Chart Patterns: Hanging Man

Dark cloud cover:

Consisting of a long green candlestick and a red candlestick of the same dimensions but starting 10% below the middle of the green bar, the bearish Dark Cloud pattern signals a bearish trend when in an uptrend. The bearish dark cloud formation is the most obvious example of a downward shift in bullish momentum. If the third candle is formed below the red candle, you should consider selling. 

Candlestick Chart Patterns:Dark Clould Cover

Bearish Engulfing:

The Engulfing Bearish pattern is a bearish pattern that appears in an uptrend. It contrasts with the Bullish Engulfing pattern that appears in a bull market. It signals a downtrend as opposed to a Bullish Engulfing pattern. It is expressed by a large red candle covering a small green candle that preceded it.

When you see a Bearish Engulfing pattern when the trend is up, it means that the sellers have outstripped the buyers and hence the price enters an aggressive downtrend. If the next candle is formed below the red candle, you should consider selling.

Candlestick Chart Patterns:Bearish Engulfing

The Evening Star:

Evening Star is the opposite of Morning Star. In an uptrend, it forms at the top. I’m not going to explain this in detail because you can get the opposite of what I’ve told you so far.

Some technical analysts argue that the second candle formed in the morning star – evening star should be open with a GAP, that is, lower than the closing of the first candle, it doesn’t make much difference to me. I only care about the following in these two formations:

The second candle will be weak and unstable. The close of the third candle will be close to or past the opening of the first candle. If the chart provides these two items, the pattern is OK for me.

Candlestick Chart Patterns: The Evening Star

Three Black Crows:

Three Black Crows is a candlestick pattern that indicates the start of a downtrend. The Three Black Crows candlestick pattern, which is the opposite of the Three White Soldiers candlestick pattern, should only be considered when it occurs in a rally or an established uptrend, as it is a moderate reversal pattern.

According to this; It signals that the uptrend in which it has occurred is weakening and that a possible downtrend may begin.

Candlestick Chart Patterns:Three Black Crows

The Three Black Crows candlestick pattern consists of three bearish candles, which are considered “sinister crows”. Each of these bearish candles should have a relatively large body and close at the low or near the low of the time-frame it represents. In other words, these long bearish candles should not have a lower shadow or be very small.

Thus, each successive candle forming the Three Black Crows candlestick pattern indicates a steady decline in the price level.

On the other hand; preferably, each of the three candles should open at a price level below the middle of the body of the previous candle, but this is not a requirement.

Even if the Three Black Crows candlestick pattern indicates the end of an uptrend and the start of a downtrend, if the candles forming the candle formation are too large, indicating significant price declines, it is necessary to be careful that oversold conditions may have occurred and thus the trend may rise again.

Black Marubozu:

This candlestick represents an extremely bearish market and is characterized by a long black body with no shadows on either end.

Recognition Criteria

1. The body of the candlestick is black and long.

2. It has no upper and lower shadows.

Special Conditions and Flexibility

The black body of the candlestick should be longer than the other candlesticks on the price chart. It should not have lower and upper shadows.

In its simplest definition, Black Marubozu is that the opening price is equal to the highest price of the day and the closing price is equal to the lowest price of the day. This indicates that sellers control the market from the first to the last trade during the day.

After the opening, prices fall continuously without looking back, resulting in a long black day with no upper shadow. Prices close at the low of the day so that the lower shadow does not form.

This candlestick is generally bearish. However, its position within the larger drawing is also important. The long black candlestick could indicate a potential bearish reversal and that prices have reached a key resistance level after a long rise. On the other hand, if it is seen at the end of a long-lasting significant decrease; It can also be a signal of panic and surrender, reflecting the last attempt to sell before buyers regain control.

However, it is not correct to judge the possible direction of the market by looking at this candlestick alone, as it only reflects the price action of a single trading day.

Candlestick Chart Patterns:Black Marubozu

Three Inside Down:

This pattern is a confirmed Bearish Bear pattern. The first two days are a Bearish Pregnant pattern. The third day shows that the Pregnant Moon is confirmed to be bearish.

Recognition Criteria

1. Uptrend is valid in the market.

2. In the first two days we see a Bearish Bear (or a Pregnant Bear Cross) pattern.

3. Then, a black candlestick appears on the third day, which closes below the closing price of the second day.

Special Conditions and Flexibility

A Pregnant Bear (or a Cross-Country Bear) formation must have formed in the first two days in accordance with the applicable rules set. On the third day, a black candlestick should be formed that closes lower than the previous closing price.

Investor Behavior

The second day of the Triple Inside Down Bearish now signals that the trend is starting to turn down, as the small body (or Doji) of the second day indicates that the bull market has lost its strength. The third day confirms this as well, but still requires further confirmation to be able to say that the downward turn has begun.

Confirmation/Stoploss Levels

The confirmation level is defined as the last closing price. For the formation to be confirmed, prices need to break this level down.

The stoploss level is defined as the highest price of the last day. After the signal, prices start to go up instead of going down before any upside pattern can be determined, and if there is a close above the stoploss level or if consecutive peaks occur above this level, the stop loss is triggered.

Candlestick Chart Patterns:Three Inside Down

Bearish Harami:

This Formation consists of a white body and a black body within the boundaries of this white body. The formation basically resembles a pregnant woman. This is not a coincidence. “Harami” is an ancient Japanese word meaning “Pregnant”. The long black candlestick is the “mother” and the small candlestick is the “baby” it carries.

Recognition Criteria

1. Uptrend is valid in the market.

2. A white body is seen on the first day.

3. The black body that appears on the second day remains completely inside the white body of the previous day.

Special Conditions and Flexibility

This pattern consists of two candlesticks where the white candlestick of the first day completely encloses the following black candlestick. The first bar should be a normal or long white candlestick. Either the body upper levels or the lower body levels of the two candlesticks can be the same. In both cases the black body must be smaller than the previous white body.

Investor Behavior

The Pregnant Bear is a sign of mismatch in the market. When the market is under the domination of the bulls in an uptrend, the heavy purchases are indicated by the white body, which supports the dominance of the bulls. However, the next day’s opening is lower than the first day’s close, or at the full closing level, and trades stay within a narrow range throughout the day. The second day’s close is lower, but still within the body of the previous day. Due to this sudden deterioration in the trend, investors begin to worry about whether the uptrend in the market will continue.

Confirmation/Stoploss Levels

The confirmation level defines the confirmation level, whichever is lower than the second day’s closing price and the midpoint of the first white body. For the formation to be confirmed, prices need to break this level down.

The stoploss level is defined as the higher of the last two days’ highs. After the signal, prices start to go up instead of going down before any upside pattern can be determined, and if there is a close above the stoploss level or if consecutive peaks occur above this level, the stop loss is triggered.

Candlestick Chart Patterns:Bearish Harami

Shooting Star:

It consists of an Inverted Hammer that follows a white body and features a small one with a long crest. Similar in shape to the Inverted Hammer Bullish pattern, the Shooting Star is in a trend and the return of a downtrend.

Recognition Criteria

1. Uptrend is valid in the market.

2. A small white observation is seen on the first day.

3. On the second day, a small piece is observed at the bottom of the product. Body color doesn’t matter.

4. The lower upper valley of the candle should be at least twice the body.

5. There is (almost) no drop shadow.

Special Conditions and Flexibility

The body of the Inverted Hammer should be small. You’ll be at least twice the upper shadow, and your average mom is also to stay short. It’s simple if the drop shadow is none or very small. It should be higher than the upper body of the Inverted Hammer body.

Investor Behavior

To stop this formation in an uptrend. The white candle, which looks like the first day, also supports the rise. You are at or close to the market low on the second day inside the Inverted Hammer. Then it changes direction and we see a rally. However, the bulls will be at or close to the low at the end of the day, which will end for the rest of the day. This will worry bulls with profitability.

Confirmation/Stoploss Levels

Confirmed level Inverted Hammer body as sub-equipment. To confirm the formation, this training of prices is necessary to drive downward.

Stoploss levels as the last daily high. Above the signal it starts to rise above it without any upside trend and will be able to move forward on the advances from the stop.

Candlestick Chart Patterns:Shooting Star

Tweezer Top:

Tweezer top candle formation is a Tweezer candle formation that occurs in its possible trend. The alternative of this Tweezer mother form is the first candle, a large top up as a shopping, a bullish candle; the second candle should be a passion candle for a lifetime as a minor. Both candles should be the highest price levels they have reached, that is, their high values. Above the broad price, market highs or trendlines training an incoming upper formation is at the level.

Candlestick Chart Patterns:Tweezer Top

Three Outside Down:

This pattern is a confirmed Bearish Engulfing pattern. The first two candlesticks are a Bearish Engulfing, while the third day shows a Bearish Pregnant confirmation to the downside.

Recognition Criteria

1. Uptrend is valid in the market.

2. We see a Bearish Engulfing pattern in the first two days.

3. Then, on the third day, we see a black candlestick that closes below the second day’s closing price.

Special Conditions and Flexibility

In the first two days, a Bearish Engulfing pattern must have formed in accordance with the applicable rules. On the third day, a black candlestick should form, which closes lower than the previous day.

Investor Behavior

The first two days of the Triple Outer-Down Bear is already a Swallowing Bear. The third day is a pattern confirmation that the uptrend is broken, as there is a black candlestick closing at the lowest point of the last three days. However, further confirmation is required before we can say that a downward reversal has occurred.

Confirmation/Stoploss Levels

The confirmation level is defined as the last closing price. For the formation to be confirmed, prices need to break this level down.

The stoploss level is defined as the highest price of the last day. After the signal, prices start to go up instead of going down before any upside pattern can be determined, and if there is a close above the stoploss level or if consecutive peaks occur above this level, the stop loss is triggered.

Candlestick Chart Patterns: Three Outside Down

Bearish Counterattack

Candlestick Chart Patterns:Bearish Counterattack

Continuation Candlestick Patterns:

Doji:

It is a candlestick that shows that the opening and closing prices are approximately equal.

Recognition Criteria

1. Body length is zero or very close to zero.

Special Conditions and Flexibility

Ideally, the stem should be colorless and of zero length. However, candlesticks with body colors of white or black and body lengths close to zero can also be considered as Doji.

Investor Behavior

The Doji is a special signal that reflects indecision about the direction of the market and represents mutual contention in the battle between buyers and sellers. This candlestick simply shows that prices move above and below the open during the day and then the session closes exactly at or very close to the opening price. The Doji is a temporary truce as a general result. It indicates that neither the buyers nor the sellers can maintain control during the day and a change in direction may occur in the prices in the near future.

Doji is an important candlestick. As it gives a message on its own, it also plays a leading role in other formations as an important element. It should be interpreted according to the characteristics of the previous trend or previous candlesticks. The appearance of a long white candlestick or Doji after a bullish sign indicates that the buying pressure is weakening. A long black candlestick or a bearish aftermath indicates that selling pressure is easing. The doji essentially signals that the forces of supply and demand are starting to equalize, so a change in trend may be imminent. However, the Doji alone is not sufficient to detect the beginning of a turn; The turn must be confirmed by the following signals.

The importance of the Doji as a signal is somewhat relative and depends on the characteristics of the market. The Doji is actually important in markets where we don’t see many Dojis on the price chart. If there are many Dojis on a chart, the appearance of a new Doji in that market is not that meaningful and the signal value is insignificant.

Candlestick Chart Patterns: Doji Candlestick

Spinning Top:

Candles with a long upper shadow, a long lower shadow, and small bodies are called “swirling tops.” The color of the body is not very important.

The pattern shows the indecision between buyers and sellers.

The small body (hollow or full) shows little movement from open to close, and the shadows show that both buyers and sellers are struggling but no one has come out on top.

Although the candle has been opened and closed with little change, neither buyers nor sellers can gain the upper hand.

If it’s forming in an uptrend, it usually means there aren’t many buyers left and the direction could reverse.

If it’s forming during a downtrend, it usually means there aren’t many sellers left and the direction could reverse.

Candlestick Chart Patterns:Spinning Top

Falling Three Methods:

The Falling Three Method is a candle formation that occurs in a downtrend and indicates that the downtrend from which it occurred will continue. The first candle to form this candle formation is a bearish candle (red or black candle) with a large body.

The few candles formed after the first candle are bullish candles (green or white candles) with a small body that open and close between the high and low price levels of the first candle. In other words, these few bullish candles formed after the first candle should not exceed the price range of the first candle.

The last candle forming the Falling Three Methods candle formation is a bearish candle (red or black candle) with a large body that closes at a lower price than the previous candle’s closing and closes at a lower price than the first candle’s opening price.

Candlestick Chart Patterns:Falling Three Methods

Rising Three Methods:

The Rising Three Method is a candle formation that occurs in an uptrend and indicates that the uptrend from which it occurred will continue. The first candle to form this candle formation is a bullish candle (green or white candle) with a large body.

The few candles that form after the first candle are bearish candles (red or black) with a small body that open and close between the high and low price levels of the first candle.In other words, these few bearish candles formed after the first candle should not exceed the price range of the first candle.

The last candle forming the Rising Three Methods candle formation is a large body bullish candle that opens at a higher price level than the previous candle’s closing and closes at a higher price level than the first candle’s closing price. If the first candle has no upper and lower shadows or is small, the resulting Three Methods candlestick formation is more reliable.

Candlestick Chart Patterns:Rising Three Methods

30. Upside Tasuki Gap:

It is a bullish continuation candlestick pattern which is framed in a continuous upswing.

This candlestick pattern comprises of three candles, the primary candlestick is a since a long time ago bodied bullish candlestick, and the subsequent candlestick is likewise a bullish candlestick graph framed after a hole up.

The third candlestick is a bearish light that shut in the hole framed between these initial two bullish candles.

Candlestick Chart Patterns:Upside Tasuki Gap

Downside Tasuki Gap:

It is a bearish continuation candlestick pattern which is formed in an ongoing downtrend.

This candlestick pattern consists of three candles, the first candlestick is a long-bodied bearish candlestick, and the second candlestick is also a bearish candlestick formed after a gap down.

The third candlestick is a bullish candle that closes in the gap formed between these first two bearish candles.

Candlestick Chart Patterns:Downside Tasuki Gap

Mat Hold

 

Candlestick Chart Patterns:Bullish Mat Hold

Rising Window

The rising window is a candlestick pattern comprising of two bullish candlesticks with a hole between them. The hole is a space between the high and low of two candlesticks that happens because of high exchanging instability. It is a pattern continuation candlestick pattern demonstrating solid strength of purchasers on the lookout.

Candlestick Chart Patterns:Rising Window

Falling Window

The falling window is a candlestick pattern that comprises of two bearish candlesticks with a hole between them. The hole is a space between the high and low of two candlesticks.

It happens because of high exchanging unpredictability. It is a pattern continuation candlestick pattern and it means that the solid strength of dealers on the lookout.

Candlestick Chart Patterns:Falling Window
Falling Window example

High Wave 

Candlestick Chart Patterns:High Wave

The high wave candlestick pattern is a hesitation pattern that shows the market is neither bullish nor bearish. It generally happens at help and opposition levels. This is the place where bears and bulls fight each other in the work of attempting to push the cost in a provided guidance.

Candlesticks portray the pattern with long lower shadows and long upper wicks. In like manner, they have little bodies. The long wicks signal there was a lot of value development during the given time frame. In any case, the cost eventually wound up shutting close to the opening cost.

High Wave Example

FAQ

Which candlestick pattern is most reliable?

The shooting star candlestick is considered one of the most reliable and best candlestick patterns primarily for intraday trading. On this type of intraday chart, you typically see a bearish candlestick that indicates a top, as opposed to a hammer candle that suggests a downtrend.

The Most Popular Bullish Reversal Patterns Used in Technical Analysis Candlestick Patterns

Hammer
Inverted hammer
Three White Soldiers
Bullish Harami

The Most Popular Bearish Reversal Patterns Used in Technical Analysis Candlestick Patterns

Hanging Man
Falling Star
Three Black Crows
Bearish Harami
Black Cloud Cover

Most Popular Continuation patterns Used in Technical Analysis Candlestick Chart Patterns

Rising three methods
Falling three methods

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