Candlestick charts explained
Posted in Bullish reversals
The dragonfly doji is a bullish reversal candlestick pattern. A candle forms with a very small to almost nonexistent body with a long lower wick. The lower wick or shadow is significant, several pips long. There is little or no upper wick. How to trade the dragonfly doji? The pattern…
Posted in Bearish reversals
The gravestone doji is a bearish reversal candlestick pattern that mostly appears at the top of uptrends. It forms when the open, low, and close are the same or about the same price. This formation has a long upper tail but no lower tail, thus it shows an upside-down capital…
Posted in Bullish reversals, and Continuation patterns
The white opening marubozu is a single candlestick pattern with a long white body, an upper shadow and the lack of lower shadow. The day opens and prices rise above the opening price. Prices continue to move up all day thus forming the long white body. The closing price is…
Posted in Bullish reversals, and Continuation patterns
The white marubozu is a simple single candle pattern. As the name suggests it is white, showing that the stock price closed on a higher level than it started the day. It has a long body without any lower or upper shadows. The day opens and prices continue to move…
Posted in Bearish reversals
Black closing marubozu is a single candle pattern. It has a long black body and an upper shadow. There is no lower shadow, showing that the closing price and the lowest price are at the same level. The pattern shows that sellers controlled the trading day from open to close,…
Posted in Bullish reversals
The inverted hammer is a single candle pattern that appears at the bottom of a downtrend. There is a long upper shadow, which should be at least twice the length of the real body. The longer the upper shadow, the higher the potential of a reversal occurring. The color of the…
Posted in Bearish reversals, and Continuation patterns
The black marubozu is a simple single candle pattern. As the name suggests it is black, showing that the stock price closed on a lower level than it started the day. It has a long body without any lower or upper shadows. The day opens and prices continue to move…
Posted in Continuation patterns
Black spinning top is a single candlestick pattern with low reliability. Occasionally it behaves like a continuation pattern, other times it signals a trend reversal. This pattern has a small black body and long lower and upper shadows. The market moves higher and then sharply lower. The opening and closing…
Posted in Bullish reversals
Bullish belt hold is a single candlestick pattern, mostly a white opening marubozu that forms in a downtrend. The market gaps down and opens at its low, and closes near to the high of the day. There is just a small upper shadow. Confirming bullish belt hold Occurring after a…
Posted in Bullish reversals
The hammer is a common trading signal, made up of a single candlestick. It has a small body with a long lower shadow. The shadow is at least twice as long as the candlestick itself. There is very little or no upper shadow at all. The body may be black…