Single-candle Formations With Multi-candle

Patterns
Pairing single-candle formations with multi-candle patterns can enhance
interpretation, as it provides more context about potential reversals, continuations, or
market indecision.

Here’s how each of the primary single-candle formations can fit within common
multi-candle patterns:

1. Strong Bullish and Bearish Candles

1. Open Near Low, Close Near High (Bullish Marubozu)

○ Multi-Candle Pairing: Often appears in Three White Soldiers (three
consecutive bullish candles with strong closes), signaling a bullish
reversal or continuation.
○ Pairing Example: After a downtrend, it may be the first candle in a
Morning Star pattern, especially if it follows a bearish candle and is
followed by a smaller indecision candle.

2. Open Near High, Close Near Low (Bearish Marubozu)

○ Multi-Candle Pairing: Often a component of the Three Black Crows
pattern (three bearish candles), indicating strong selling pressure and a
bearish reversal.
○ Pairing Example: Can also appear as the last candle in an Evening Star
pattern, following a bullish candle and a smaller indecision candle,
signaling a bearish reversal.

2. Moderate Bullish and Bearish Candles

3. Open Near Middle, Close Near High (Moderate Bullish Sentiment)

○ Multi-Candle Pairing: Could be part of a Bullish Harami pattern (a
smaller bullish candle within a larger previous bearish candle), signaling a
potential bullish reversal.
○ Pairing Example: May also be the second candle in a Three Inside Up
pattern, following a bearish candle and indicating a trend shift.
 4. Open Near Middle, Close Near Low (Moderate Bearish Sentiment)
○ Multi-Candle Pairing: Often found in Bearish Harami (smaller bearish
candle within a larger previous bullish candle), suggesting a possible
reversal to the downside.
○ Pairing Example: May appear in the Three Inside Down pattern,
following a bullish candle and signaling a bearish reversal.

5. Open Near Low, Close Near Middle (Bullish Bias with Resistance)
○ Multi-Candle Pairing: Commonly appears in Bullish Piercing Line
patterns, where the candle opens below a previous bearish candle’s close
and pushes up to close near the midpoint.
○ Pairing Example: May be part of the Bullish Engulfing pattern, where
it’s followed by a bullish candle that closes above the previous bearish
candle’s open.

6. Open Near High, Close Near Middle (Bearish Bias with Support)
○ Multi-Candle Pairing: Found in Bearish Piercing Line patterns, where
the candle opens above the previous bullish candle and moves
downward.
○ Pairing Example: Can be in Bearish Engulfing, with the next candle
opening above and then closing below the open of a bullish candle.

3. Indecision and Doji Candles

7. Open and Close Near Middle (Doji)

○ Multi-Candle Pairing: Key in Evening Doji Star (follows a bullish candle,
then doji, then bearish candle), signaling a reversal.
○ Pairing Example: Can be in Morning Doji Star when it follows a bearish
candle and precedes a bullish candle, indicating a potential bullish
reversal.

8. Open and Close Near High (Gravestone Doji)

○ Multi-Candle Pairing: Common in Evening Doji Star formations, where
it follows a strong uptrend.
○ Pairing Example: Can appear in a Bearish Tweezer Top, where it’s
paired with a candle that has a long upper wick, indicating strong rejection
near the high.
 9. Open and Close Near Low (Dragonfly Doji)
○ Multi-Candle Pairing: Often appears in a Morning Doji Star, indicating a
bullish reversal if it’s followed by a strong bullish candle.
○ Pairing Example: Part of Bullish Tweezer Bottom, signaling reversal if
paired with a candle with a long lower wick.

10. Open Near Middle, Close Near Middle with Long Wicks
● Multi-Candle Pairing: Common in Three-Line Strike, a reversal pattern where a
neutral candle with long wicks signals indecision before a continuation move.
● Pairing Example: Can be part of Harami Cross, signaling a potential reversal
after a strong trend.

4. Reversal and Exhaustion Candles

11. Open = Low, Close Near High (Bullish Reversal)

● Multi-Candle Pairing: Frequently the last candle in a Three Inside Up pattern,
confirming a reversal after indecision.
● Pairing Example: Often found in Bullish Engulfing as the second candle after a
strong bearish close.

12. Open = High, Close Near Low (Bearish Reversal)

● Multi-Candle Pairing: Key in Three Inside Down pattern, confirming a bearish
reversal after indecision.
● Pairing Example: Often in Bearish Engulfing as the second candle after a
strong bullish close.

13. Open Near Low, Close Near Low with Long Upper Wick (Shooting Star)
● Multi-Candle Pairing: Part of the Evening Star or Evening Doji Star patterns,
where it signals the end of an uptrend.
● Pairing Example: Can also appear in Tweezer Top, especially at resistance,
signaling bearish reversal.

14. Open Near High, Close Near High with Long Lower Wick (Hammer)
● Multi-Candle Pairing: Appears in Morning Star patterns, especially after a
downtrend.
● Pairing Example: Found in Tweezer Bottom, signaling strong rejection of lower
prices and possible reversal.
5. Additional Variations

15. Open Near Low, Close Near Middle with Upper Wick (Mild Bullish
Sentiment)
● Multi-Candle Pairing: Part of Bullish Harami Cross, which shows hesitation but
a potential shift to bullish sentiment.
● Pairing Example: Can appear in a Three Inside Up pattern as the indecisive
middle candle.

16. Open Near High, Close Near Middle with Lower Wick (Mild Bearish
Sentiment)
● Multi-Candle Pairing: Often in Bearish Harami Cross, signaling possible
bearish reversal.
● Pairing Example: Can also be part of Three Inside Down as the middle candle.

17. Open Near Middle, Close Near Middle with Short Wicks (Neutral Doji)
● Multi-Candle Pairing: Found in Doji Star patterns (either Morning or Evening),
signaling reversal.
● Pairing Example: Can be the middle candle in Three Inside Up or Three Inside
Down patterns, adding to the reversal signal.

These combinations highlight how single-candle formations gain greater meaning when
paired with multi-candle setups. Recognizing these patterns provides insight into market
momentum, trend reversals, and areas of indecision, helping you make more informed
decisions.
Pairing single-candle formations with multi-candle patterns allows for stronger
confirmation and can enhance trading strategies by providing more context. Here’s how
each single-candle type can be paired with multi-candle formations to refine potential
moves.

Bullish Single Candles Paired with Multi-Candle Patterns

1. Bullish Engulfing with Three White Soldiers

○ Pairing: If a Bullish Engulfing candle appears within a Three White
Soldiers setup, it confirms strong buyer interest.
○ Action: Look for continued bullish momentum and consider entering long
on the third white soldier.
2. Hammer with Morning Star
○ Pairing: A Hammer followed by a Morning Star reinforces a bottoming
signal.
○ Action: Enter long after the third candle of the Morning Star confirms the
reversal.
3. Doji with Bullish Harami
○ Pairing: If a Doji appears within a Bullish Harami, it signals indecision
and a possible bullish reversal.
○ Action: Enter long if the next candle confirms a higher close above the
doji.
4. Bullish Marubozu with Piercing Line
○ Pairing: A Bullish Marubozu following a Piercing Line pattern confirms
strong upward momentum.
○ Action: Enter long after confirmation; set stop below the low of the
Piercing Line.

Bearish Single Candles Paired with Multi-Candle Patterns

5. Bearish Engulfing with Three Black Crows

○ Pairing: A Bearish Engulfing candle within a Three Black Crows
pattern strengthens the downward momentum.
○ Action: Consider shorting as the third crow closes; set stop above the
engulfing candle’s high.
6. Shooting Star with Evening Star
○ Pairing: A Shooting Star that appears before an Evening Star pattern
confirms a possible bearish reversal.
○ Action: Short after the third candle of the Evening Star confirms a
downward close.
7. Gravestone Doji with Dark Cloud Cover
○ Pairing: A Gravestone Doji within a Dark Cloud Cover setup signals a
reversal from an uptrend.
○ Action: Enter short if the next candle confirms with a lower close.
 8. Bearish Marubozu with Bearish Harami
○ Pairing: A Bearish Marubozu appearing after a Bearish Harami signals
intensified selling pressure.
○ Action: Short after the Marubozu close and set a stop above the Harami
high.

Neutral Single Candles Paired with Multi-Candle Patterns

9. Doji with Three Inside Down

○ Pairing: A Doji within a Three Inside Down pattern can confirm a
bearish reversal if it’s followed by a lower close.
○ Action: Short if the next candle continues downward, with a stop above
the Doji high.
10. Doji with Three Inside Up
○ Pairing: A Doji appearing within a Three Inside Up pattern signals
indecision before a potential bullish reversal.
○ Action: Enter long on a break above the Doji, confirming the trend
change.
11. Long-Legged Doji with Harami Cross
○ Pairing: A Long-Legged Doji with a Harami Cross pattern indicates
strong indecision.
○ Action: Wait for clear confirmation in either direction before trading.

Combining Strong Candles with Neutral Patterns

12. Bullish Marubozu with Tweezer Bottom

○ Pairing: A Bullish Marubozu forming as part of a Tweezer Bottom
confirms buyer control.
○ Action: Go long on a break above the Tweezer’s high, with a stop below
the recent low.
13. Bearish Marubozu with Tweezer Top
○ Pairing: A Bearish Marubozu within a Tweezer Top setup indicates
rejection of higher levels.
○ Action: Short on a break below the Tweezer’s low, with a stop above the
recent high.

Patterns Supporting Reversals and Continuations

14. Hammer with Bullish Engulfing

○ Pairing: A Hammer followed by a Bullish Engulfing pattern can signal a
robust bullish reversal.
○ Action: Go long if the engulfing candle closes above the Hammer’s high.
 15. Shooting Star with Bearish Engulfing
○ Pairing: A Shooting Star followed by a Bearish Engulfing enhances the
likelihood of a bearish reversal.
○ Action: Enter short if the next candle confirms lower; stop above the
Shooting Star.

Candle Patterns for Trending Markets

16. Spinning Top with Doji Star

○ Pairing: A Spinning Top followed by a Doji Star can indicate indecision
in a strong trend.
○ Action: Wait for the next candle to confirm direction and enter
accordingly.
17. Marubozu with Three Line Strike
○ Pairing: A Marubozu within a Three Line Strike formation signals
continuation.
○ Action: Enter in the direction of the Marubozu’s close if the trend
continues; place a stop beyond the strike pattern’s range.

These combinations leverage the power of both single- and multi-candle patterns,
enhancing strategy by confirming potential market reversals or continuations.