24. Harami Black Cross candlestick pattern This pattern is similar to the Black Harami except that the second candlestick is a Doji.
25. Harami White candlestick pattern This pattern consists of two candlesticks. The first is a l ong white body, the second is a short black body. The black candlestick's range is within the range of the white candlestick. This indicates the current trend is coming to an end a period of standoff be tween bulls and bears i s taking place.
26. Harami White Cross candlestick pattern This pattern is similar to t he White Harami except that the second candlestick is a Doji.
27. High Wave candlestick pattern This candlestick consists of a small, white, or black real body and a long upper or lower shadow.
28. InNeck Candlestick pattern This candlestick pattern consists of two candles. The first is long and black the second is a short white real body. The close o f the white candlestick is above the low of the black one. This pattern appears in downtrends. The white candlestick represents a brief pause where the bulls have stopped the downward trend but once the white candlestick low is broken the downtrend should resume.
29. Inverted Hammer candlestick pattern This candlestick has a very small real body with a very long top shadow. There is little or no bottom shadow. When appearing after a long downtrend this candlestick indicates a possible trend reversal.
30. Ladder Bottom Candlestick After an established downtrend, three black days with consecutively lower closes occur. The fourth day is a black day with an upper wick. An Inverted Hammer. The fifth day is a white day. The first several days establish a consistent downtrend. As time progresses however shorts take the opportunity to par-off their positions and take profit. This is illustrated in the fourth days black Inverted Hamme r candle. As prices are bid up, the high is pushed up. In this formation sellers are still able to drive price down to levels nearer the open creating a small body. Up to dayfour in the formation this just suggests that sellers are losing firm control of the market. By the fifth day, a bullish rally creates the long white candle. Candlestick analysts would look for buy entry opportunities to come.
31. Long Legged Doji candlestick pattern This candlestick is a Doji with a long upper and lower shadow. It can be a sign of a market reversal.
32. MatHold Pattern candlestick pattern This pattern consists of five candlesticks. The first is a long white real body followed by three small black bodies, and then a small white bo dy. The first black candlestick gaps up from the fi rst white candlestick. The three black bodies each close progressively lower. The last white candlestick gaps up from the black series. The impli cation is that the trend has not been stalled. The Mat Hold pattern is a stronger continuation pattern than the Rising Three Method.
33. Meeting Lines Bear Day one is long white day. Day two is long black day. Both days close at the same price. After an uptrend, the second days candle open above the previous close. Even though the second day had rallie d during off-exchange hours and opened high, a sell-off brings the close near the previous day closed. Figuratively meeting the lines of close prices. This typically means the bull trend has been weakened and a re versal is possible.
34. Meeting Lines Bull Meeting Lines Bull is a bulli sh market reversal pattern indicating the beginning of an uptrend after a downtrend. It is a two candlestick formation. The first day should be noticeable with strong bearish activity resulting in a long bearish candlestick. On second day there should be a bullish candlestick (often it is shorter than first day candlestick) which opens below a significant gap and closes at or around the closing price of first day candle.
35. Morning Star candlestick pattern This pattern consists of three candlesticks. A long black body, a small white body that gaps down from the black body and finally a white candlestick which closes above the midpoint of the black candlestick.
36. Morning Doji Star candlestick pattern This pattern consists of three candlesticks. This pattern is the same as the Morning Star except a Doji appears instead of a small white body.
37. On Neck Candlestick First day we see a long black candle. The second day is white day, opening belo w the low of the fi rst day and closing barely into the body of the first day. Because the On Neck does not trade up to the previous day's close or into day one's candle, it serves as a strong bearish continuation signal.
38. Outside Bar Pattern An outside bar is a ba r whose trading range totally encompasses that of its predecessor. These patterns develop after both down and up trends and represent exhaustion.
39. Piercing Line candlestick pattern This pattern consists of two candlesticks. The first is black the second white. The white candlestick body opens lower than the black body close, but closes above the midpoint of the black body. This is a bullish continuatio n pattern.
40. Rising Three Method candlestick pattern This pattern consists of five candlesticks. The first candlestick is long and white; it is followe d by three small black bodie s each of which closes lower than the prior one. All of the small black bodies hold within the range of the first white candlestick. The final candlestick is a long white body that closes at a new high. In an uptrend this is a bullish continuation pattern showing that the bears tried to stop the uptrend but were unsuccessful.
41. Separating Line Bearish candlestick pattern This pattern consists of two candlesticks. A white candlestick is fol lowed by a black candlestick. Both candlesticks have the same o pen. When this pattern appears in a downtrend it is a signal that the downtrend should continue.
42. Separating Line Bullish candlestick pattern This pattern consists of two candlesticks. A black candlestick is followed by a white candlestick. Both candlesticks have the same o pen. When this pattern appears in an uptrend it is a signal that the uptrend should continue.
43. Shooting Star candlestick pattern This candlestick is a small body with a long upper shadow and little or no lower shadow. When this appears in an uptrend it i s bearish signal.
44. Side by Side White Gapping down candlestick pattern This pattern consists of two white candlesticks which are about the same size. The candlesticks both have the same open. If these candlesticks gap lower from a previous candlestick and the market is in an downtrend, this signals that the downtrend will continue.
45. Side by Side White Gapping up candlestick pattern This pattern consists of two white candlesticks which are about the same size. The candlesticks both have the same open. If these candlesticks gap higher from a previous candlestick and the market is in an uptrend, this signals that the uptrend will continue.
46. Stalled Pattern candlestick pattern This pattern consists of two candlesticks. The first is long white candlestick and the second is a small body. The second body is near the top of the long white candlestick body or above i t. When this pattern is spotted during an uptrend, it usually signals stalling o ut of the uptrend.
47. Tasuki Downside Gap candlestick pattern This pattern consists of three candlesticks. The first i s a long black body, the second is a small black body, and the third i s a small white body. The middle small black body gaps down from the long black one. The small whi te body opens in the body of the small black one but then closes above the small black body. In a declining market this is a bea rish continuation pattern.
48. Tasuki Upside Gap candlestick pattern This pattern consists of three candlesticks. The first is a long white body, the second is a small white body and the third i s a small black body. The middle small white body gaps up from the long white one. The small black body opens in the body of the small white one but then closes below the small black body. In an advancing market this is a bullish continuation patte rn.
49. Three Gaps Down candlestick pattern This pattern consists of three candlesticks, each gaps progressively lower. When pattern appears i n a downtrend it is a sign that selling power may be diminishing.
50. Three Gaps Up candlestick pattern This pattern consists of three candlesticks, each gaps progressively higher. When pattern appears in an uptrend it is a sign that buying power may be diminishing.
51. Three Line Strike Bear After an established downtrend three long bl ack days in a row continue this move, each closing lower than the previous day. Day-four is white candle that closes near the open of the first day. So long as the previous downtrend is an established one, candlestick analysts view this formation as a sign that the downtrend may still continue. The first t hree days serve as a fairly clear bearish move. U p to day-three in fact we have a Three Black Crows formation which is a strong bearish signal.
52. Three Line Strike Bull Three white days occur in a row continuing an established bull trend. Each day should close higher than the previous day. Day-four is black candle that closes near the open of the first day. So long as the previous uptrend is an established one, candlestick analysts vi ew the Three Line Strike formation as a sign that the uptrend may still continue.
53. Three Outside Down After an established uptrend a clear bearish Engulfing pattern occurs (one white candle and a second black candle that drives price below the prior day low and closes near the bottom of the range). The third day i s a black day with an even lower close than the second day. In a market characterized by uptrend, day-twos black candle closes completely below day one, e ngulfing it. The first two days are a classic pattern that suggests a sell-off has taken over the market and is breaking the established trend. This bearish reversal is confirmed by a still lower day on daythree.
54. Three Outside Up After an established downtrend, day one continues the trend with a black candle. Day-two i s a long white day that engulfs the body of the first day, closing well above the previous days open. The third day is a white day wi th an even higher close than the second day. The Bullish Three Outside Up pattern is one of the more clear-cut three-day bullish reversal patterns. The formation reflects buyers overtaking selling strength, and often precedes a continued rally in price. In fact up to day-two we have a bullish Engulfing Pattern, itself a strong two-day reversal pattern.
55. Three Stars in the South After an established downtrend, day one i s a long red day with a long lower wick. Day-two is also a red day similar to the first, only with a smaller body and shorter bottom wick. Day-three trades within the second days range and has a small red body with no wick at all (Red Marubozu). The Bullish Three Stars in the South formation suggests weakening in the established downtrend. Although each new day is able to close l ower, and despite the fact that sellers are able to drive price down ill ustrated by the lower wicks, those short positions are not able to get the close price to continue the strong bearish trend. While the pattern predicts a reversal, it may only reflect shorts paring off their position (just a delay or respite in the downtrend). Thus analysts do not usually take the Bullish Three Stars in the South as a strong enough buy signal in itself. Instead analysts use it as an indication to liquidate short positions and watch for buying opportunities. This formation is most significant after a protracted selloff.
56. Three White Soldiers candlestick pattern This pattern consists of three white candlesticks. Each of the candlesticks closes progressively higher. In addition, the close of e ach is near the high. This is a bullish reversal pattern which is more reliable if found at the end of a prolonged downtrend.
57. Thrusting Line candlestick pattern This pattern consists of two candlesticks. The first one is black and the second is white. The white candlestick closes in the black candlestick's body. However, the white candlestick closes below the m idpoint of the black candlestick.
58. Tri Star Bear After an established bull trend, three do jis (open and close at identical price) occur on three consecutive trading days. After a long up-trending market the appearance of three do jis suggests a great deal of indecision about t he future direction of the market. Such signs of indecision often precede reversals. The first doji day reveals that the market is indecisive after a long uptrend. The second doji day further emphasizes market uncertainty, by the third doji day longs have cle arly lost momentum and complete control o f the market. Candlestick analysts will look for bearish moves in the following days.
59. Tri Star Bull After an established downtrend. There dojis (open and close at identical price) occur o n consecutive trading days. In a long bearish market the strength of trend shows weakness as candle bodies grow progressively smaller, eventually f orming three consecutive dojis. A doji candle reveals market indecision, since neither buyers nor sellers prove able to move the close price away from the open. This kind of price action is quite common during periods with limited m arket activity like holidays. However, after a protracted downtrend or during periods of high trading volume a number of dojis can suggest a reversal in market trend.
60. Tweezers Bottom In an established downtrend, day-one is a black candle with a shaven bottom. The second day is a white hammer or doji with a long upper shadow. The essential element of this pattern is a series of candles that all share the same low. This could be the two days in the examples below, or a number of days that are not consecutive. After a protracted bearish move, this may provide a weak reversal signal but most tra ders will look for additional confirmation of a reversal.
61. Tweezers Top In an established uptrend day one i s a white candle with a shaven bottom. The second day is a black hammer o r doji with a long l ower shadow. The essential element of this pattern a series of candles that all share the same high. This could be the two days in the examples above, or a number of days that are non-consecutive. After a protracted bullish move this may provide a weak reversal signal, but most traders will look for additional confirmation of a reversal.
62. Upside Gap Two Crows candlestick pattern This pattern consists of three candlesticks. The first is long and white, the second and third are small and black. The second small black body gaps up from the long white candlestick. The third body opens above the second open but then closes below the second's close. This is a top reversal pattern in advancing markets.
63. Western Gap Down candlestick pattern A western gap down occurs when the current high is less than the previous low. This is the traditional definition of a gap down unlike the Japanese definition which only takes into account the body of the candlestick (relationship o f open and close) and not the highs and lows.
