Name Pattern Time Entry & Exit Ratio Notes

Drogonfly Drogonfly- Wait for Could be profit do it Rejection: not take

doji& after confirmation candle right way. long-tailed doji as

grssveston downtrend (C.C) signal(sideways

e doji. (bullish) (it needs to close market, period of

After below the previous low liquidity)

uptrend candle) Dragonfly doji only

(bearish or C.C to close below useful to us when

indecisive). bottom 1/3 range appears after

(bearish or bullish) downtrend; while for

Stop loss (S.L) gravestone is

Is placed 1 pip appears after

above high. uptrend.

The entry could have
been taken at the
open of the next
candlestick after the
bearish confirmation
candlestick closed,
if you wanted to be
more aggressive and
improve your
chances of a good
risk to reward ratio .

the stop loss would

be placed only 1 pip
below the low of the
downtrend (no need
to account for
spread).

That’s because the

spread is paid on
entry during buy
plays, and it’s paid
on EXIT during sell
trades.
Doubletop Uptrend is Entry at open of next Reward to risk ratio Better: there is a

(bearish fail to make candlestick less than 1:1 trendline.

reversal a higher S.L placed above

pattern) high. highest high in 2:1 or 1.5:1

Measure the double top.

resistance

Forex line to the Engulfing pattern:

double breakout engulf candle close

top(aggress line(duplicat in bottom 1/3 of its

ive) e downward) range. Shooting star

is followed by

Bearish confirmation candle

engulfing closes its bottom

pattern 1/3 of its range.

occurred
 right at It is important that

resistance first top in double

line. top bottom is

followed by a nice

bounce down.

Fav forex

double

(signals

bearish

engulfing, s

hooting

star, topdog

trading

system)
Entry for this Risk reward ratio

strategy is taken less than 1:1

when price breaks

below the breakout

line

Your stop loss is

placed above the

highest high in the

double top pattern.

Entry is typically

taken after the first

candlestick that 2:1 or 1:1

opens and closes

below the trendline.

Place your stop

loss above the

highest high in the

double top pattern

 Entry would be taken

on the open of the

next candlestick.

The stop loss would

be placed above the

highest high in the

double top (

Head & Measure Entry takes when the Neckline angled

shoulders from the neckline is broken upward (less

(strong same S.L is placed above bearish), angle

price action starting the right shoulder of downward (more

pattern) point & the pattern. bearish)

duplicate
downward

to determine

your take Pull back entry

profit. (P.B.E)

Measure It is simply a

from the candlestick that P.B.E is a more

centre of bounces off the conservative

the neckline neckline. approach and waits

to the top of for the candlestick

the head & to close below the

duplicate to neckline after

measure to touching it.

the

downside

for you
to take

profit.

the entry is taken

when the neckline is

broken.

Your stop loss

should be placed

above the right

shoulder of the

pattern.

To get your take

profit, you measure,

centred between the

lows that form the

neckline, to the

highest high in the

head of the pattern.

entry trigger in the

“pullback entry”

could be several

things. Traders

sometimes combine

this chart pattern

with the signals from

another trading

system. It could also

be a candlestick

signal, or simply a

candlestick that

bounces off the

neckline

your stop loss in the

“pullback entry”

would be placed

above the right

shoulder of the

pattern.

Your take profit

would be
determined the

same way as the

standard setup as

well. Measure from

the center of the

neckline to the top of

the head. Duplicate

that measurement

to the downside for

your take profit.

the entry trigger was

a dark cloud cover

candlestick pattern 2:1

My stop loss is 5

pips above the high

of the right shoulder.

This gives me room

to cover the spread

plus a little cushion

for 15-minute time

frame noise.
 My take profit is

twice my risk.

Shooting Confirmatio Entry (open):simply 5X of your risk, True shooting star

star n close place a sell order the 4:1 candlestick pattern

candlestick (bearish very next candlestick is only come after an

(bearish reversal has following shooting uptrend in price.

pinbar) not actually star.

begun until Not need another

The long the new candle for

upper candlestick confirmation when

wick(shado starts to
w) is twice close below Entry (break): there is a strong

the size of the real Enter the trade 1 pip reversal signal.

the real bodies of below the low of

body. the previous a shooting star. Shooting star I close

candlestick) lower than

the previous

candlestick.

Close to Entry (confirmation): Pullback happens in

relative you need to wait for about 5 candlesticks

range a pullback to enter or starting from the

(bearish the trade. confirmation

candlestick candlestick.

close in
bottom 1/3 Entry(50%): take Very large shooting

of its range) entry at 50% of total star can create a

range. poor reward to risk

The relative S.L is placed 5 pips ratio.

size of above the high of

the pattern your signal.

(a large ^**you can see gap Bonus:

candlestick between high & your Combining

is a more S.L about 5-10 pips Techniques

significant is good enough.

bearish [Link] levels:

signal than a At( 60%): S.L to good resistance

relatively breakeven (after level should have a

small one) price reached 60% strong price surge

of my profit) into the level, as well

 as a strong bounce

away from it.

The support &

resistance areas to

act more like zones

than exact levels.

[Link]

divergence:

MACD divergence

I’m risking 50 pips, I occurs during

place my take profit uptrend when price

making higher highs

100 pips below my while MACD line or

entry histogram is making

lower high.

I would consider a

3:1 reward to risk

ratio when entering

on the open of the

next candle

(standard entry #1)

or when using the

50% entry (without a

confirmation

candle).
take profit with a

qualified shooting

star setup and the

market will hit my

full take profit

consistently enough

to be profitable over

time.
Bearish MACD

divergence occurs

during an uptrend

when price is making

higher highs while

the MACD line or

histogram (pictured

below) is making

lower highs.

The idea behind

divergence trading is

that the lower highs

on the MACD or
 another indicator

could be an early

sign that momentum

is leaving the trend.

If momentum is

leaving the trend,

the odds of a

reversal are

increased.

Ultimate The gap up Entry(open): enter at Target 2:1 Good engulfing

bearish is followed the open of the next patterns are stronger

engulfing by bearish candle) and occur much

candlestick candlestick more given good

Forex: and big gap pinbars.

simply a up is
candlestick followed by Entry(break):

that opens an engulfing Enter when the low Tallwick & Tall

at or above bearing of the engulfing candle both create

and closes candlestick. candle is broken) poor reward-to-risk

of previous ratio.

candle.

Confirmatio Entry(50%):

Non-forex: n close Waiting for the price

it’s just the (It is simply pullback to 50% of

opposite of an total range of

the forex additional engulfing Whenever

pattern. clue that candlestick. If get a possible, you should

the trend is pullback, you end up sell the limit order

likely to with much better to execute that 50%

reverse.) entry & odds of entry.

 hitting your full take

profit.

Close

relative to

range

(bearish

candlestick

close in

bottom 1/3

of its range)

Relative size

of the

pattern(avoi

d taking
patterns

which are

significantly

smaller than

previous

candlestick)
Whenever possible, 2:1

you should use a sell

limit order to

execute the 50%

entry. Again, this will

help you get an

accurate entry,

place your stop loss

while trading the

bearish engulfing

candlestick pattern,

moving your stop

loss to a breakeven

point

I’m risking 50 pips, I

place my take profit

100 pips away from

my entry (see the

image above).

Over the years, this

has worked out very

well for me,

especially with the

bearish engulfing

pattern
the lower highs on

the MACD line or

histogram could be

an early indicator

that momentum is

leaving the uptrend,

which increases the

odds of a reversal.

When combined

with a strong bearish

reversal signal, like

the bearish engulfing

candlestick pattern,

the odds of a
 reversal are even

better.

Dark cloud The traditional Tree dark cloud

cover confirmation entry cover pattern only

candlestick happens when occurs after an

(bearish the price breaks the uptrend in price.

reversal low of the second

signal) candlestick in our

 dark cloud cover Large candlesticks

Non-forex: signal. do not provide

the second a good risk-to-

bearish S.L should be placed reward ratio.

candlestick above the highest

needs to high in the pattern. It is lucrative to be

open above responsible for what

the first you are doing.

bullish

candlestick

Forex: a gap

up to the
second

candles

open is not

necessary.

(extreme

liquidity)

entry happens when

price breaks the low

of the second

candlestick in our

dark cloud cover

signal.

The only other

option is to enter at
 the open of the new

candle.

Your stop loss

should be placed

above the highest

high in the pattern

Bearish Entry: 1 pip below 2:1 from 1:1 Generally occurs

Harami the bottom wick of (profitable over a after an uptrend in

candlestick the smaller, second period of time) price.

candle of a pattern.

Non-forex: Bearish price

The second movement is short-

candlestick lived you could have

is not more made a nice profit.

than 25% of In some

the first cases(retrace in

whether an uptrend): the It is not treated

(bearish or trigger to jump into a same respect as a

bullish) properly qualified strong reversal

Opens and bearish Harami is signal, such as

closes are when the price hammer, morning

less breaks one pip star engulfing

significant below the low of the patterns.(reversal is

in most smaller, second moderately strong)

markets. candlestick in the

pattern.
 S.L is placed above

Forex: the highest high in

the second the series formed.

candlestick

always

opens and

closes near

the first

candlestick

. It is

always

bearish.
Entry into a properly

qualified bearish
harami is when price

breaks (1 pip) below

the low of the

smaller, second

candlestick in the

pattern .

place your stop loss

(1 pip) above the

highest high in the

series of

candlesticks that

formed your harami

pattern
 Measure the Entry in breakout No ascending or

Double support line level. descending pattern.

bottom and

(bullish duplicate. S.L is placed under

price action the most recent low.

signal)

Enter at the opening

of the next

candlestick.

S.L is moved to

break even before

the price makes it

back up to the

breakout line.

your entry is taken

after price breaks

the breakout line.

Your stop loss is

placed under the

most recent low

wait for a

candlestick to open

and close above the

trendline.

If that happens, you

enter at the open of

the next candlestick

(see the image

below).

Your stop loss is

placed under the

most recent low.

Your entry would be

the standard entry

for a bullish

engulfing pattern,

which is the open of

the next candle.

 Your stop loss

would be placed

under the most

recent low,.

your take profit

would be the

standard take profit

target for the double

bottom.

Inverse Ascending Entry is taken when Good reward to risk You never

head & neckline is the price breaks ratio especially with guaranteed with a

shoulders considered the neckline. descending pull back.

more bullish neckline.

(strong but prefer to S.L is placed under If you want more

bullish trade with the right shoulder aggressive combine

reversal horizontal or signals like

signal) descending hammer(with

neckline. confirmation and

pull back)or bearish

engulfing pattern.
entry is taken when

price breaks the

neckline.

The stop loss is

placed below the

right shoulder.

your target,

measure from the

neckline to the

lowest low of the

pattern (I prefer to

measure to the

candle body low).

Then take that

measurement and

duplicate it upward

take the entry if and

when price pulls

back to the neckline

Place the stop loss

under the right

shoulder.

To get your target,

simply duplicate the

measurement from

the neckline to the

lowest low
use price action

signals like the

hammer (with

confirmation and

pullback) or bullish

engulfing pattern as
an entry trigger for

this pattern.

Place your stop loss

under the right

shoulder of the

pattern as in the

previous two

techniques.

To calculate your

target, simply

duplicate your

measurement from
 the neckline to the

lowest low

Hammer Entry(50%): 1:2 risk to reward Trying to trade the

candlestick better to ratio hammer or shooting

(consists of close only star from a

a shadow half of my neutral/ranging

2X position market is a good way

the length when price to lose your money.

of the real reached 2x

body of what I was typically do not take

candlestick risking. I any trades based on

) could have the price action of a

let the chart less than 15

remaining minutes; however,

half ride up the 1 Hour chart is

to 3x my more meaningful,

original risk, the 4 Hour chart is

and then better, the Daily

closed half chart is even better,

of that etc….

position,

leaving the

remaining

half (one

quarter of

my original

position) to

ride the

swing to the

top.
Must be

traded

within the

control of

market and

trend.

True one

forms only

after

downward

trending

candles.
trade at the 50%

entry, you would

have been risking

about 80 pips.

much better to close

only half of my

position when price

reached 2x what I

was risking.

I could have let the

remaining half ride

up to 3x my original

risk, and then closed

half of that position,

leaving the

remaining half (one

quarter of my

original position) to

ride the swing to the

top.
 After moving the

stop loss to break

even, this becomes

a free trade. The only

risk in this trade, at

that point, is risk to

potential profit. Each

time the upward

trend made a new

higher low, I could

have moved my stop

loss to just below

the latest higher low

Morning Entry: entered at the 2:1 If the second

star open of the dragonfly doji it

(bullish candlestick provides lower risk

reversal immediately to reward ratio.

signal)&(bu following the

llish morning star

engulfing pattern, and placed

pattern) your stop loss one

pip below the lowest

This pattern low, you could have

consists of still made a profit of

a relatively about 2x your risk.

large

bearish

candle, Also:50% of the total

followed by range of the third

a small candle is a good

real-bodied target, or even 50%

second of the real body of

candle that that candle works

is either well. If you would

slightly have entered the

bearish or a trade after price

doji (since pulled back near the

there are 50% mark of the

rarely gaps outside (third) 3:1

in Forex), candle, you could

and then a have made more

third than 3x your risk.

candle

whose real

body pulls
into and

closes

past, at

least, the

halfway

point of the

first

candle’s

real body

Non-forex:

second

candle

needs to be
isolated

outside of

the other

two

candles in

the pattern.

The second

candle can

have a

small

bullish or

bearish real

body, or it

can be a

doji. The
second

candle

must not be

an inside

bar.

Forex:

Forex, you

will see a

morning

star that

looks like a

non-Forex

morning

star (except
it will most

likely have

a slightly

bearish

second

candle). If

the third

candle

gaps up,

and leaves

the second

candle

isolated,

this is a

strong
bullish

signal.

These

cases are

rare, but

they can be

very high-

probability

signals.

entered at the open

of the candlestick
immediately

following the

morning star

pattern,.

placed your stop

loss one pip below

the lowest low,.

you could have still

made a profit of

about 2x your risk.

50% of the total

range of the third

candle is a good

target, or even 50%

of the real body of

that candle works

well. If you would

have entered the

trade after price

pulled back near the

50% mark of the

outside (third)

candle, you could

have made more

than 3x your risk.

Bullish Entry: entering a buy 2:1

engulfing position at the The true bullish

candlestick opening of the engulfing pattern will

(hat opens candle following the only come after a

at or below bullish engulfing bearish movement

the close of pattern. in price (consecutive

the lower lows).

previous S.L: Placing your

candle stop loss at the

(almost bottom of the bullish While amateurs may

guaranteed engulfing try to chase price,

in Forex), candlestick, this the big players will

and then trade would have start taking their

closes been worth nearly 2x profits or entering

above the your risk. trades against a

open of the quick, volatile price

same movement .

[previous]

candle.) You should never

trade reversal

signals from periods

of market

consolidation.

2:1

You could have

made a nice profit by

entering a buy

position at the open

of the candle

following the bullish

engulfing pattern.

Placing your stop

loss at the

bottom of the bullish

engulfing

candlestick.

this trade would

have been worth

nearly 2x your risk.

Bullish Entry:1. You could A true bullish

piercing enter the trade when piercing pattern only

candlestick and if the new occurs after a

(pattern candle (the candle downward trend in

consists of after the bullish price.

a relatively piercing pattern)

large breaks the high of

bearish the previous candle. idea is that this

candlestick 2. You could take larger candlestick is

, followed this trade on the more significant,

by a bullish open of the new and so are any

candlestick candle. 3. You could patterns that

that closes wait for the new develop from it.

somewhere candle to possibly

above the pull back in price to A good trend and

50% mark 50% of the piercing reversal trading

of the pattern’s bearish system can be very

preceding candle (real body) useful for trades like

candlestick before entering. 4. this one, and for

’s real You could wait and further qualifying

body) possibly enter when price action trades

and if price retests in general.

the support level

Forex: the revealed by the

bullish bullish piercing

candle pattern’s formation.

should

open near
the close of Exit: place your stop

the loss under the

preceding lowest low in the

bearish sequence of the

candle; piercing pattern. In

there are the example above

rarely gaps our stop loss would

in Forex, have been placed

because of under the low of the

the extreme bearish candlestick

liquidity of in the sequence.

the market.

Non-forex:

the bullish
candle

should

open below

the

preceding

bearish

candle

Inverted A true Enter: entry should Don’t recommend

hammer inverted be 1 pip above the pure candlestick

candlestick hammer high of the trading – especially

(a weak when it confirmation candle with moderate or

reversal appears (as shown above), or weak signals. I prefer

signal) after a at the open of the to combine

downtrend candle immediately candlestick trading

long upper in price after the with a reliable

wick/shado action. confirmation candle trading system that

w (at least closes, depending is profitable on its

2x the size on your trading own. At the very

of the real strategy. least, you should be

body), and taking these signals

it should S.L: placed 1 pip from significant

have little below the lowest low support and

or no lower in the area of the resistance levels.

wick/shado inverted hammer

w. signal – not Combining price

necessarily the action trading with a

inverted hammer profitable trading

itself method can help you

qualify better trades

 and improve your

strike rate.

The entry should be

1 pip above the high

of the confirmation

candle (as shown

above), or at the
open of the candle

immediately after

the confirmation

candle closes,

depending on your

trading strategy.

The stop loss would

be placed 1 pip

below the lowest low

in the area of the

inverted hammer

signal – not

necessarily the
inverted hammer

itself.
NAME PATTERN TIME ENTRY&EXIT RATIO NOTES
11
12.
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