Famous candle stick patterns in trading

Famous candle stick patterns in trading

Hi Traders, Hope you are trading well. Those who already know candle stick patterns, this is going to be a wonderful revision and those who are beginner who wants to learn candle stick patterns , then you are at right place.

There are so many candle stick patterns appears in the trading chart which makes difficult to keep in mind. So we categorize them in the following:

• Single candle stick pattern.
• Two candle stick pattern.
• Three candle stick pattern

SINGLE CANDLE STICK PATTERN:

Doji:

Doji is described as long wicks with body of the candle is so thin. There are 4 types of doji as follows:

Neutral Doji:

Trend reversal.

should form at the top or bottom of the uptrend and bottom of the down trend respectively

Long Legged Doji:

Trend reversal.

should form at the top or bottom of the uptrend and bottom of the down trend respectively

Dragonfly Doji:

Trend reversal-Bullish pattern
should form only at the bottom of the downtrend.

Gravelstone Doji:

Trend reversal-Bearish pattern.

should form only at the top of the uptrend

Hammer and hanging man:

It  is described as the body the candle is slightly bigger than doji candles and has small wick at one end and long wick at the other end.

Hammer:

Trend reversal-Bullish pattern.

should form only at the bottom of the downtrend

Hanging man:

Trend reversal-Bearish pattern.
should form only at the top of the uptrend

Shooting star and inverted hammer:

It  is described as the body the candle is slightly bigger than doji candles and has small wick at one end and long wick at the other end.

Shooting star:

Trend reversal-Bearish pattern.
should form only at the top of the uptrend

Inverted hammer:

Trend reversal-Bullish pattern.
should form only at the bottom of the downtrend

TWO CANDLE STICK PATTERN:

Bullish engulf:

Trend reversal-Bullish pattern
should form only at the bottom of the downtrend

Bear engulf:

Trend reversal-Bearish pattern.
should form only at the top of the uptrend

Bull harami:

Trend reversal-Bullish pattern
should form only at the bottom of the uptrend

Bear harami:

Trend reversal-Bearish pattern.
should form only at the top of the uptrend

THREE CANDLE STICK PATTERN:

Morning star:

Trend reversal-Bullish pattern
should form only at the bottom of the downtrend

Evening star:

Trend reversal-Bearish pattern.
should form only at the top of the uptrend

I hope you have learned some new things. If you want to learn more candle stick pattern, Do let me know in comment section.