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Candlestick Patterns Guide

The document outlines various candlestick patterns and their implications for market behavior. Key patterns include Doji, Hammer, Shooting Star, Engulfing patterns, Morning Star, Evening Star, Spinning Top, and Marubozu, each indicating potential market reversals or trends. Understanding these patterns can help traders make informed decisions based on market sentiment.

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dspillay23
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7 views2 pages

Candlestick Patterns Guide

The document outlines various candlestick patterns and their implications for market behavior. Key patterns include Doji, Hammer, Shooting Star, Engulfing patterns, Morning Star, Evening Star, Spinning Top, and Marubozu, each indicating potential market reversals or trends. Understanding these patterns can help traders make informed decisions based on market sentiment.

Uploaded by

dspillay23
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Candlestick Patterns & Market Behavior

1. Doji

A Doji indicates market indecision. It often appears before a potential reversal or significant move.

2. Hammer

A Hammer appears after a downtrend, indicating potential bullish reversal. Long lower wick, small real body

at the top.

3. Shooting Star

Seen after an uptrend, this bearish reversal pattern has a small body and a long upper wick.

4. Bullish Engulfing

Occurs after a downtrend. A small red candle followed by a larger green candle that fully engulfs the red

body.

5. Bearish Engulfing

Happens after an uptrend. A small green candle followed by a larger red candle that engulfs the previous

one.

6. Morning Star

Bullish reversal pattern: large red candle, small-bodied candle (gap down), followed by a large green candle.

7. Evening Star
Candlestick Patterns & Market Behavior

Bearish reversal pattern: large green candle, small-bodied candle (gap up), followed by a large red candle.

8. Spinning Top

Small body with long upper and lower wicks. Suggests indecision and possible reversal.

9. Marubozu

Strong trend candle with no wicks. A bullish marubozu shows buyers in control; a bearish one shows seller

dominance.

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