Scribd
Upload
9 views10 pages

Candlestick Patterns Complete Guide

The document outlines various candlestick patterns used in trading, including Bullish and Bearish Engulfing, Doji, Hammer, Shooting Star, Morning Star, Evening Star, Inverted Hammer, Hanging Man, and Spinning Top. Each pattern indicates potential market reversals or indecision, accompanied by specific trading signals such as 'Buy', 'Sell', or 'Wait'. These patterns are essential for traders to identify market trends and make informed decisions.

Uploaded by

tiwariprince968
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
9 views10 pages

Candlestick Patterns Complete Guide

The document outlines various candlestick patterns used in trading, including Bullish and Bearish Engulfing, Doji, Hammer, Shooting Star, Morning Star, Evening Star, Inverted Hammer, Hanging Man, and Spinning Top. Each pattern indicates potential market reversals or indecision, accompanied by specific trading signals such as 'Buy', 'Sell', or 'Wait'. These patterns are essential for traders to identify market trends and make informed decisions.

Uploaded by

tiwariprince968
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

Bullish Engulfing

Type: Bullish Reversal

Occurs when a small red candle is followed by a large green candle that completely engulfs it. It

indicates a potential reversal from a downtrend to an uptrend.

Trading Signal: Buy


Bearish Engulfing
Type: Bearish Reversal

A small green candle followed by a large red candle that engulfs the green one. It suggests a

possible reversal from an uptrend to a downtrend.

Trading Signal: Sell


Doji
Type: Indecision / Reversal

The open and close prices are virtually equal, forming a small body. A doji indicates market

indecision and potential reversal.

Trading Signal: Wait / Reversal Possible


Hammer
Type: Bullish Reversal

A small body with a long lower shadow, typically found after a downtrend. Indicates potential bullish

reversal.

Trading Signal: Buy


Shooting Star
Type: Bearish Reversal

A small body with a long upper shadow after an uptrend. Suggests a possible bearish reversal.

Trading Signal: Sell


Morning Star
Type: Bullish Reversal

A three-candle pattern with a long red candle, a small-bodied candle, and a long green candle.

Found at the end of a downtrend.

Trading Signal: Strong Buy


Evening Star
Type: Bearish Reversal

Three-candle pattern with a green candle, a small-bodied candle, and a large red candle. Appears

at the end of an uptrend.

Trading Signal: Strong Sell


Inverted Hammer
Type: Bullish Reversal

Occurs after a downtrend. Has a small body and a long upper shadow. Indicates potential bullish

reversal.

Trading Signal: Buy


Hanging Man
Type: Bearish Reversal

Found at the top of an uptrend with a small body and long lower shadow. Indicates selling pressure.

Trading Signal: Sell


Spinning Top
Type: Indecision

Candlestick with a small body and wicks on both sides. Indicates uncertainty in price movement.

Trading Signal: Wait / Confirm

You might also like