Bullish Candlesticks

  • Bullish Doji
    A bullish doji is characterized very small to non-existent body (may be a bullish or bearish candle as long as the body is small), and a upper and lower wick that is at least several times the size of the body. It occurs after a downtrend and represents potential indecision among traders, indicating that a reversal may be in the works.
  • Bullish Engulfing
    A bullish engulfing is a two-candle pattern. The pattern should occur after a downtrend, and the second candle of the pattern should "engulf" the first candle - opening at or below the close of the first candle and closing above. This pattern signals potential bearish exhaustion and the start of a new uptrend.
  • Hammer
    A hammer is a single candlestick signal that has a large bottom wick, a small or non-existent top wick and a small body. It occurs after a downtrend and signals that bulls may have lost their momentum against bears, and indicates a shift to an uptrend.
  • Inverted Hammer
    An inverted hammer is a single candle pattern that has a large top wick, small or non-existent bottom wick and a small body. This pattern occurs at the bottom of a downtrend and indicates a potential start of an uptrend.
  • Piercing Line
    A Piercing Line signal is a two candle pattern. The first candle is a bearish candle. The second candle should close at least halfway up the first candle, but not above it (if it closed above it, it would be a bullish engulfing). When this candle occurs after a downtrend it is seen as a sign that an uptrend is about to begin. If a third candle were to close above the first candle then this would become a Three Inside Up.
  • Three Inside Up
    A Three Inside Up pattern is a three candle pattern. The first candle is bearish. The second candle should close at least halfway up the first candle but not above it. The third candle should close above the open of the first candle. When this pattern occurs after a downtrend the close of the third candle above the first candle is seen as confirmation of a new uptrend.
  • Three Outside Up
    A Three Outside Up pattern is a three candle pattern, and is essentially a bullish engulfing followed by another bullish candle. The first candle is a bearish candle. The second candle is a bullish engulfing, closing above the first candle. The third candle is another bullish candle, and is seen as further confirmation that a bullish uptrend is beginning.

Bearish Candlesticks

  • Bearish Doji
    A bearish doji is characterized very small to non-existent body (may be a bullish or bearish candle as long as the body is small), and a upper and lower wick that is at least several times the size of the body. It occurs after an uptrend and represents potential indecision among traders, indicating that a reversal may be in the works.
  • Bearish Engulfing
    A bearish engulfing signal is a two candle pattern where the second candle opens at or above and closes below the first candle, completely engulfing the first candle. It occurs after an uptrend and the fact that bears were able to close the price below the previous bullish candle represents a potential reversal as bears are gaining strength.
  • Dark Cloud
    A Dark Cloud, sometimes called Dark Cloud Cover, signal is a two candle pattern. The first candle is a bullish candle. The second candle should close at least halfway down the first candle, but not below it (if it closed below it, it would be a bearish engulfing). When this candle occurs after an uptrend it is seen as a sign that a downtrend is about to begin. If a third candle were to close below the first candle then this would become a Three Inside Down.
  • Hanging Man
    A hanging man is a single candle pattern that has a large bottom wick, a small or non-existent top wick and a small body. This signal should occur at the top of an uptrend and signals the potential start of a new downtrend.
  • Shooting Star
    A shooting star is a single candle pattern that signals a bearish reversal may be imminent. It has a very small body, a large top wick and a small-to-non-existent bottom wick. When it occurs in an uptrend it is viewed as an extinction candle that means bulls may have reached an "exhaustion point", and that a downtrend is about to begin.
  • Three Inside Down
    A Three Inside Down pattern is a three candle pattern. The first candle is a bullish candle. The second candle should close at least halfway down the first candle, but not below it. The third candle should close below the first candle. When this pattern occurs after an uptrend it signals that a new downtrend may be about to occur.
  • Three Outside Down
    A Three Outside Down pattern is a three candle pattern, and is essentially a bearish engulfing followed by another bearish candle. The first candle is a bullish candle. The second candle is a bearish engulfing, closing below the first candle. The third candle is another bearish candle, and is seen as further confirmation that a bearish downtrend is beginning.