Candlestick Pattern Glossary: Unlocking the Secrets of Technical Analysis
By understanding the various candlestick patterns and their significance, traders can gain valuable insights into market sentiment and potential price trends. In this comprehensive Candlestick Pattern Glossary, we will explore 100 proprietary trading terms, providing you with a valuable resource to enhance your trading skills and knowledge.
Candlestick patterns are an essential tool in the world of technical analysis, aiding traders and investors in making informed decisions about the future movements of financial markets.
Abandoned Baby: A rare reversal pattern characterized by a doji sandwiched between two gaps, signaling a potential trend reversal.
Advance Block: A bearish reversal pattern consisting of three ascending candlesticks, suggesting weakening buying pressure.
Bearish Engulfing: A bearish reversal pattern formed when a large bearish candle completely engulfs the previous smaller bullish candle.
Bearish Harami: (complete definition) A bearish reversal pattern marked by a small bullish candle followed by a larger bearish candle.
Bearish Harami Cross: A bearish reversal pattern where a doji follows a small bullish candle, indicating potential downside.
Bearish Marubozu: (complete definition) A bearish continuation pattern characterized by a long, solid bearish candle with no shadows.
Bearish Meeting Lines: A bearish reversal pattern formed when two consecutive bullish candles open and close at similar levels.
Bearish Three Inside Down: A bearish reversal pattern occurring after a prevailing uptrend, with the third candle closing below the first candle’s low.
Bearish Three Line Strike: A strong bearish reversal pattern consisting of four consecutive bearish candles, where the fourth candle opens below the first candle’s low.
Bearish Three Outside Down: A bearish reversal pattern marked by three descending candles, with each one closing below the previous candle’s low.
Bearish Tri-Star: A rare bearish reversal pattern with three doji candles in a row, indicating potential trend reversal.
Belt Hold Line: A single candlestick pattern with a long bullish or bearish candlestick that opens at its high or low and closes near its high or low.
Bullish Engulfing: A bullish reversal pattern formed when a large bullish candle completely engulfs the previous smaller bearish candle.
Bullish Harami: A bullish reversal pattern characterized by a small bearish candle followed by a larger bullish candle.
Bullish Harami Cross: A bullish reversal pattern where a doji follows a small bearish candle, suggesting potential upside.
Bullish Marubozu: A bullish continuation pattern consisting of a long, solid bullish candle with no shadows.
Bullish Meeting Lines: A bullish reversal pattern formed when two consecutive bearish candles open and close at similar levels.
Bullish Three Inside Up: A bullish reversal pattern occurring after a prevailing downtrend, with the third candle closing above the first candle’s high.
Bullish Three Line Strike: A strong bullish reversal pattern consisting of four consecutive bullish candles, where the fourth candle opens above the first candle’s high.
Bullish Three Outside Up: A bullish reversal pattern marked by three ascending candles, with each one closing above the previous candle’s high.
Bullish Tri-Star: A rare bullish reversal pattern with three doji candles in a row, indicating potential trend reversal.
Breakaway Gap: A gap in the price chart that signals the beginning of a new trend or a significant price movement.
Closing Price: The final price of an asset at the end of a trading session.
Dark Cloud Cover: A bearish reversal pattern formed when a bearish candle follows a bullish candle, with the bearish candle closing below the midpoint of the previous bullish candle.
Doji: (complete definition) A candlestick pattern with a small body and equal or nearly equal opening and closing prices, signaling market indecision.
Dragonfly Doji: (complete definition) A type of doji candlestick pattern with a long lower shadow and no upper shadow, indicating potential bullish reversal.
Evening Star: A bearish reversal pattern consisting of three candles – a bullish candle, a doji or small-bodied candle, and a bearish candle – signaling potential downside.
Falling Three Methods: A bearish continuation pattern where a small bearish candle is followed by three smaller bullish candles.
Gravestone Doji: A type of doji candlestick pattern with a long upper shadow and no lower shadow, indicating potential bearish reversal.
Hanging Man: A bearish reversal pattern formed by a small bearish candle with a long lower shadow, suggesting potential downside.
High Wave Candle: A candlestick with a long upper shadow and a long lower shadow but a small real body, indicating market uncertainty.
Inverted Hammer: A bullish reversal pattern characterized by a small bullish candle with a long upper shadow, signaling potential upside.
Long-Legged Doji: A doji candlestick pattern with long upper and lower shadows, reflecting high market uncertainty.
Morning Doji Star: (complete definition) A bullish reversal pattern consisting of three candles – a bearish candle, a doji or small-bodied candle, and a bullish candle – signaling potential upside.
Piercing Line: A bullish reversal pattern formed when a bullish candle closes above the midpoint of the previous bearish candle.
Shooting Star: A bearish reversal pattern characterized by a small bearish candle with a long upper shadow, suggesting potential downside.
Spinning Top: A candlestick pattern with a small real body and long upper and lower shadows, indicating market indecision.
Three Black Crows: A bearish reversal pattern formed by three consecutive bearish candles, signaling potential downtrend continuation.
Three White Soldiers: A bullish reversal pattern consisting of three consecutive bullish candles, signaling potential uptrend continuation.
Tweezer Bottoms: A bullish reversal pattern marked by two consecutive candles with matching or nearly matching lows, suggesting a potential price reversal.
Tweezer Tops: A bearish reversal pattern characterized by two consecutive candles with matching or nearly matching highs, signaling a potential price reversal.
Windows: Gaps in the price chart caused by a significant difference between the closing price of one candle and the opening price of the next candle.
2-Black Gapping: A bearish continuation pattern with two bearish candles gapping down, signaling potential downtrend continuation.
3-Black Crows: A bearish reversal pattern formed by three consecutive bearish candles, indicating potential trend reversal.
3-Line Strike: A strong bullish or bearish reversal pattern consisting of four consecutive candles, where the fourth candle opens above or below the first candle’s high or low.
3-Outside Up/Down: A bullish or bearish reversal pattern marked by three ascending or descending candles, suggesting a potential price reversal.
3-Stars In The South: A bullish reversal pattern with three doji candles, signaling potential trend reversal.
3-White Soldiers: A bullish reversal pattern consisting of three consecutive bullish candles, indicating potential trend continuation.
Advance Block: A bearish reversal pattern formed by three ascending candles, suggesting weakening buying pressure.
Bearish Abandoned Baby: (complete definition) A rare reversal pattern characterized by a doji sandwiched between two gaps, signaling a potential trend reversal.
Bearish Belt Hold: A single bearish candlestick pattern with a long bearish candle that opens at its high and closes near its low.
Bearish Breakaway: A bearish reversal pattern occurring after a bullish trend, where prices gap down, signaling a potential reversal.
Bearish Closing Marubozu: A bearish continuation pattern characterized by a long, solid bearish candle with no shadows and opening at its high.
Bearish Counterattack Lines: A bearish reversal pattern formed when a bearish candle follows a bullish candle, with both opening at the same price.
Bearish Doji Star: A bearish reversal pattern with a doji between two bearish candles, signaling potential downside.
Bearish Dragonfly Doji: A bearish reversal pattern with a long upper shadow and no lower shadow, indicating potential trend reversal.
Bearish Gravestone Doji: A bearish reversal pattern with a long upper shadow and no lower shadow, suggesting potential downside.
Bearish Kicking: A bearish reversal pattern formed when a bearish candle completely engulfs the previous bullish candle.
Bearish Ladder Top: A bearish reversal pattern consisting of three ascending candles with long upper shadows, suggesting potential downside.
Bearish Separating Lines: A bearish continuation pattern with two consecutive bearish candles that open at the same price and close at similar levels.
Bearish Side-by-Side White Lines: A bearish continuation pattern formed by two consecutive bullish candles with no price gap between them.
Bearish Side-by-Side Black Lines: A bearish continuation pattern formed by two consecutive bearish candles with no price gap between them.
Bearish Stick Sandwich: A bearish reversal pattern with a bullish candle sandwiched between two bearish candles, signaling potential downside.
Bearish Tasuki Gap: A bearish continuation pattern with a bearish candle gapping down, followed by a bullish candle that fails to close the gap.
Bearish Three Black Crows: A bearish reversal pattern consisting of three consecutive bearish candles, signaling potential trend reversal.
Bearish Tri-Star: A rare bearish reversal pattern with three doji candles in a row, indicating potential trend reversal.
Bearish Unique 3 River Bottom: A bearish reversal pattern marked by two consecutive doji candles followed by a bearish candle, suggesting potential downside.
Bearish Upside Gap Three Methods: A bearish continuation pattern where a bearish candle gaps down, followed by three smaller bullish candles.
Bearish Upside Tasuki Gap: A bearish continuation pattern with a bearish candle gapping down, followed by a bullish candle that fails to close the gap.
Bullish Abandoned Baby: A rare reversal pattern characterized by a doji sandwiched between two gaps, signaling a potential trend reversal.
Bullish Belt Hold: A single bullish candlestick pattern with a long bullish candle that opens at its low and closes near its high.
Bullish Breakaway: A bullish reversal pattern occurring after a bearish trend, where prices gap up, signaling a potential reversal.
Bullish Closing Marubozu: A bullish continuation pattern characterized by a long, solid bullish candle with no shadows and opening at its low.
Bullish Counterattack Lines: A bullish reversal pattern formed when a bullish candle follows a bearish candle, with both opening at the same price.
Bullish Doji Star: A bullish reversal pattern with a doji between two bullish candles, signaling potential upside.
Bullish Dragonfly Doji: A bullish reversal pattern with a long lower shadow and no upper shadow, indicating potential trend reversal.
Bullish Gravestone Doji: A bullish reversal pattern with a long lower shadow and no upper shadow, suggesting potential upside.
Bullish Kicking: A bullish reversal pattern formed when a bullish candle completely engulfs the previous bearish candle.
Bullish Ladder Bottom: A bullish reversal pattern consisting of three descending candles with long lower shadows, suggesting potential upside.
Bullish Meeting Lines: A bullish reversal pattern formed when two consecutive bearish candles open and close at similar levels.
Bullish Piercing Line: A bullish reversal pattern formed when a bullish candle closes above the midpoint of the previous bearish candle.
Bullish Rising Three Methods: A bullish continuation pattern where a bullish candle is followed by three smaller bearish candles.
Bullish Side-by-Side White Lines: A bullish continuation pattern formed by two consecutive bullish candles with no price gap between them.
Bullish Side-by-Side Black Lines: A bullish continuation pattern formed by two consecutive bearish candles with no price gap between them.
Bullish Stick Sandwich: A bullish reversal pattern with a bearish candle sandwiched between two bullish candles, signaling potential upside.
Bullish Tasuki Gap: A bullish continuation pattern with a bullish candle gapping up, followed by a bearish candle that fails to close the gap.
Bullish Three Inside Up: A bullish reversal pattern occurring after a prevailing downtrend, with the third candle closing above the first candle’s high.
Bullish Tri-Star: A rare bullish reversal pattern with three doji candles in a row, indicating potential trend reversal.
Bullish Unique 3 River Bottom: A bullish reversal pattern marked by two consecutive doji candles followed by a bullish candle, suggesting potential upside.
Bullish Upside Gap Three Methods: A bullish continuation pattern where a bullish candle gaps up, followed by three smaller bearish candles.
Bullish Upside Tasuki Gap: A bullish continuation pattern with a bullish candle gapping up, followed by a bearish candle that fails to close the gap.
Closing Marubozu: A bullish or bearish continuation pattern characterized by a long, solid candle with no shadows and opening at its high or low.
Concealing Baby Swallow: A bullish continuation pattern marked by a small bullish candle that conceals the previous bearish candle.
Deliberation: A bearish reversal pattern occurring after a bullish trend, with a small bearish candle following a large bullish candle.
Doji Star: A reversal pattern with a doji between two candles, indicating potential trend reversal.
Downside Gap Three Methods: A bearish continuation pattern where a bearish candle gaps down, followed by three smaller bullish candles.
Downside Tasuki Gap: A bearish continuation pattern with a bearish candle gapping down, followed by a bullish candle that fails to close the gap.
Engulfing Pattern: A reversal pattern where a large candle engulfs the previous smaller candle, signaling potential trend reversal.
Evening Doji Star: A bearish reversal pattern consisting of three candles – a bullish candle, a doji or small-bodied candle, and a bearish candle – signaling potential downside.
Falling Window: A gap in the price chart between two candles where the low of the second candle is higher than the high of the first candle, indicating potential price continuation.
Conclusion
BI play a vital role in technical analysis, providing traders and investors with valuable insights into market sentiment and potential price movements. This glossary has covered 52 important candlestick patterns, with a wide range of bullish, bearish, and neutral patterns, each with its unique significance. By mastering these patterns, you can enhance your ability to make informed trading decisions and navigate the complex world of financial markets with confidence. Remember, successful trading requires continuous learning and practice, so use this glossary as a starting point on your trading journey and build your expertise over time.
