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Candlestick Patterns Simple Guide

This guide provides an overview of commonly used candlestick patterns, detailing their signals and meanings. Each pattern is categorized as bullish, bearish, or neutral, with explanations on their implications for market trends. It emphasizes the importance of combining candlestick patterns with other market indicators for effective trading.

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suryakantkarade.27
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3 views1 page

Candlestick Patterns Simple Guide

This guide provides an overview of commonly used candlestick patterns, detailing their signals and meanings. Each pattern is categorized as bullish, bearish, or neutral, with explanations on their implications for market trends. It emphasizes the importance of combining candlestick patterns with other market indicators for effective trading.

Uploaded by

suryakantkarade.27
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 – Simple Guide

This guide groups the most-used candlestick patterns and explains them in simple language.

Pattern Signal Simple Meaning Use

Doji Indecision Open ≈ close Wait for confirmation

Dragonfly Doji Bullish Long lower wick Buyers pushed back

Gravestone Doji Bearish Long upper wick Sellers took control

Hammer Bullish reversal Small body, long lower wick After downtrend

Hanging Man Bearish warning Hammer shape at top Possible reversal

Inverted Hammer Bullish reversal Long upper wick Downtrend weakens

Shooting Star Bearish reversal Long upper wick at top Upside rejection

Bullish Engulfing Bullish Big green covers red Momentum shift

Bearish Engulfing Bearish Big red covers green Momentum shift

Piercing Line Bullish Strong recovery candle Possible reversal

Dark Cloud Cover Bearish Drops into previous body Possible reversal

Morning Star Bullish 3-candle bottom pattern Trend may rise

Evening Star Bearish 3-candle top pattern Trend may fall

Three White Soldiers Bullish 3 strong bullish candles Strong buyers

Three Black Crows Bearish 3 strong bearish candles Strong sellers

Harami Bullish Bullish Small candle inside prior Weak downtrend

Harami Bearish Bearish Small candle inside prior Weak uptrend

Tweezer Bottom Bullish Equal lows Support zone

Tweezer Top Bearish Equal highs Resistance zone

Rising Three Methods Bullish continuation Pause then continue up Trend continuation

Falling Three Methods Bearish continuationPause then continue down Trend continuation

Marubozu Bullish Bullish Almost no wicks Strong buying

Marubozu Bearish Bearish Almost no wicks Strong selling

Spinning Top Neutral Small body, both wicks Market uncertain

Tip: Never trade a candlestick pattern alone. Combine with trend, support/resistance, volume, and
risk-reward.

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