Candlestick Flashcards
Name this candlestick
Bearish Marabozu
- Long day Black Candle
- Contains no upper or lower shadow
- Opens at the high, closes at the low
- The strongest bearish candle that appears
- Reveals the bears are solidly in control
Name this candlestick
Bullish Marabozu
- Long day White Candle
- Contains no upper or lower shadow
- Opens at the low, closes at the high
- The strongest bullish candle that appears
- Reveals the bulls are solidly in control
Long, Short, or Average?
Long Day vs. Short Day vs. Average
A = Average Day
B = Short Day (spinning top)
C = Long Day
D = Average Day
E = Short Day (spinning top)
Average Day vs. Long Day
- Look at the “average” candle size for a trade
- Long day candles are 2-3x the size of the “average” day candle
- Long day candles indicate strong momentum (Bullish= White, Bearish = Black)
Long Lower Shadow • Long lower shadows indicate buying pressure
- A long lower shadow at support is a strong signal of bullish pressure
- The long lower shadow shows the bears were in control, but the bulls pushed them back
- The longer the lower shadow, the more bullish the candle.
Long Upper Shadow
- Long upper shadows indicate selling pressure
- A long upper shadow at resistance is a strong signal of bearish pressure
- The long upper shadow shows the bulls were in control, but the bears pushed them back
- The longer the upper shadow, the more bearish the candle
Black Candlestick Construction
- A = Opening price
- B = Closing price
- C = Intraday high
- D = Intraday low
- E = Real Body
- F = Upper Shadow
- G = Lower Shadow
White Candlestick Construction
- A = Opening Price
- B = Closing price
- C = Intraday high
- D = Intraday low
- E = Real body
- F = Upper Shadow
- G = Lower Shadow
Candlestick Reversal Signals Indicate…
- You should tighten your stops
- Be aware of a possible reversal in swing direction
- They do NOT indicate you should immediately reverse your trading position.
Candlesticks Mean The Most When…
- They are the right Color Combination
- They occur in the Right Location
High Wave Candle
- Subcategory of Spinning top candle
- Can be either black or white
- Has both a very long upper and lower shadow
- Indicates confusion in the marketplace
- Often the first candle of a reversal
Spinning Top
- Broad classification of any smaller than average candle body
- Can be black or white
- May have upper, lower shadow, or no shadow
- Indicates a change in momentum
- Often the first candle of a reversal
Shooting Star
- A specific type of spinning top candle
- Occurs after an upswing
- May be black or white
- Contains a smaller than average real body
- Upper shadow 2-3x the size of the real body
- Little or no lower shadow
- A strong bearish reversal signal
Hangman
- A specific type of spinning top candle
- Occurs after an upswing
- May be black or white
- Contains a smaller than average real body
- Lower shadow 2-3x the size of the real body
- Little or no upper shadow
- A weak bearish reversal signal
Inverted Hammer
- A specific type of spinning top candle
- Occurs after a downswing
- May be black or white
- Contains a small real body
- Upper shadow 2-3x the size of the real body
- Little or no lower shadow
- A weak bullish reversal signal
Hammer
- A specific type of spinning top candle
- Occurs after a downswing
- May be black or white
- Contains a small real body
- Lower shadow 2-3x the size of the real body
- Little or now upper shadow
- A strong bullish reversal signal
Long Legged Doji
- A specific type of Doji candlestick
- Has a both a long upper and lower shadow
- Shows indecision, but a balance upon price
- A strong reversal signal
- Bullish if @ support
- Bearish if @ resistance
Doji
- Candle with the same open and closing price
- Shows complete balance among buyers and sellers and agreed upon price
- This candlestick very often occurs as part of a swing reversal
- Bullish if @ support
- Bearish if @ resistance
Dragonfly Doji
- A specific type of doji candlestick
- Has a long lower shadow
- Very little or no upper shadow
- A strongly bullish candle
- Extremely bullish if occurring at support
Tombstone Doji
- A specific type of doji candlestick
- Has a long upper shadow
- Very little or no lower shadow
- A strongly bearish candle
- Extremely bearish if occurring at resistance
Tweezer Top
- Two day pattern occurring after an upswing
- First candle is white, second candle is black
- Matching highs where the close of the previous day matches the open of the 2nd
- Particularly strong when candle bodies are about the same size
- A Bearish Reversal signal
Tweezer Bottom
- Two day pattern occurring after a downswing
- First candle is black, second candle is white
- Matching lows where the close of the previous day matches the open of the 2nd
- Particularly strong when candle bodies are about the same size
- A Bullish Reversal signal
Dark Cloud Cover
- Two day pattern occurring after an upswing
- First candle is white, second candle is black.
- Second candle gaps up at the opening.
- Second candle trades down and closes at least 1/2 way into the first candle’s real body.
- Size or presence of shadows does not matter
- A Bearish Reversal signal
Bullish Piercing
- Two day pattern occurring after a downswing
- First candle is black, second candle is white.
- Second candle gaps down at the opening.
- Second candle trades up and closes at least 1/2 way into the first candle’s real body.
- Size or presence of shadows does not matter
- A Bullish Reversal signal
Bearish Engulfing
- Two day pattern occurring after an upswing
- First candle is white, second candle is black
- Second candle gaps up at the opening
- Second candle trades down and closes below the first day’s real body (engulfs)
- Size or presence of shadows does not matter
- A Bearish Reversal signal
Bullish Engulfing
- Two day pattern occurring after a downswing
- First candle is black, second candle is white
- Second candle gaps down at the opening
- Second candle trades up and closes above the first day’s real body (engulfs)
- Size or presence of shadows does not matter
- A Bullish Reversal Signal
Bearish Counter Attack
- Two day pattern occurring after an upswing
- First candle is white, second candle is black
- Second candle gaps up at the opening
- Second candle trades down and closes at (or close to) the same price as the previous close
- Size or presence of shadows does not matter
- A Bearish Reversal signal
Bullish Counter Attack
- Two day pattern occurring after a downswing
- First candle is black, second candle is white
- Second candle gaps down at the opening
- Second candle trades up and closes at (or close to) the same price as the previous close
- Size or presence of shadows does not matter
- A Bullish Reversal Signal
Bearish Harami
- Two day pattern occurring after an upswing
- First candle is white, second candle is black
- Second candle gaps down at the opening
- Second candle closes above previous day’s open (inside previous day’s body)
- Size or presence of shadows does not matter
- A Bearish Reversal signal
Bullish Harami
- Two day pattern occurring after a downswing
- First candle is black, second candle is white
- Second candle gaps up at the opening
- Second candle closes below previous day’s open (inside previous day’s body)
- Size or presence of shadows does not matter
- A Bullish Reversal Signal
One Black Crow
- Two day pattern occurring after an upswing
- First candle is white, second candle is black
- Second candle gaps down at the opening
- Second candle closes below previous day’s open (below previous day’s body)
- Size or presence of shadows does not matter
- A Bearish Reversal signal
One White Soldier
- Two day pattern occurring after a downswing
- First candle is black, second candle is white
- Second candle gaps up at the opening
- Second candle closes above previous day’s open (above previous day’s body)
- Size or presence of shadows does not matter
- A strong Bullish Reversal Signal
Evening Star Reversal
- Three day pattern after an upswing
- First candle is white, second candle is spinning top, third is black
- Ideally second candle has a gap on one side
- Third day should push down at least 1/2 way into first day’s candle
- A strong Bearish Reversal Signal
Morning Star Reversal
- Three day pattern after a downswing
- First candle is black, second candle is spinning top, third is white
- Ideally second candle has a gap on one side
- Third day should push up at least 1/2 way into first day’s candle
- A strong Bullish Reversal Signal
Evening Doji Star
- Three day pattern after an upswing
- First candle is white, second candle is a Doji, third is black better than average candle
- Ideally second candle has a gap on one side
- Third day should push down at least 1/2 way into first day’s candle
- A strong Bearish Reversal Signal
Morning Doji Star
- Three day pattern after a downswing
- First candle is black, second candle is a Doji, third is white better than average candle
- Ideally second candle has a gap on one side
- Third day should push at least 1/2 way into first day’s candle
- A strong Bullish Reversal Signal
Bullish Rest After Battle
- A multi-day pattern (4 or more)
- First candle is long day white candle
- Followed by 2 or more spinning tops that do not close below the first day’s open (can be any color)
- Final day is another long day white candle
- A strong bullish continuation
Bearish Rest After Battle
- A multi-day pattern (4 or more)
- First candle is long day black candle
- Followed by 2 or more spinning tops that do not close above the first day’s open (can be any color)
- Final day is another long day black candle
- A strong bearish continuation
Rising Three • A 5-day pattern
- First candle is long day white candle
- Followed by 3 spinning tops that do not close below the first day’s open (can be any color)
- Final day is another long day white candle
- A strong bullish continuation
Falling Three
- A 5-day pattern
- First candle is long day Black candle
- Followed by 3 spinning tops that do not close above the first day’s open (can be any color)
- Final day is another long day black candle
- A strong bearish continuation
Tweezers Bottom and Hammer
Tweezers Bottom and Piercing Pattern
Tweezers Top and Harami Cross
Tweezers Top and Hanging Man
Tweezers Top and Shooting Star
Tweezers Top and Dark-Cloud Cover
Harami Cross
Inside Day
Harami
Inverted Hammer
Shooting Star
Abandoned Baby Bottom
Abandoned Baby Top
Evening Doji Star
Morning Doji Star
Evening Star
Morning Star
Doji Star in an Uptrend and a Downtrend
Star in an Uptrend and a Downtrend
On-Neck Pattern
In-Neck Pattern
Thrusting Pattern
Piercing Pattern
Dark-Cloud Cover
Resistance for Bearish Engulfing Patterns
Support for Bullish Engulfing Patterns
Bullish Engulfing Pattern
Bearish Engulfing Pattern
Hanging Man
Hammer
Umbrella Lines
Top Reversal
Top Reversal
Falling Three Method
Doji
Rising Three Method
Bullish Reversal Bar
Uptrend - Bullish Reversal Bars
Key Reversal Bar
Bullish Key Reversal Bar
Bullish Exhaustion Bar
Bullish Exhausted Bears
Bullish Pin Bar
Bullish Three-Bar Pullback
Inside Bar
Uptrend Inside Bar
Outside Bar
Outside Bar Charts
Bullish Belt Hold Line
Bullish Belt Hold Line
Uptrend Bullish Belt Hold Line w. Stop Loss
Bearish Belt Hold Line
Bearish Belt Hold Line
Bullish Ladder Bottom Pattern
Bearish Upside Gap Two Crows
Bullish Counter Attack Line
Tower Top
Tower Bottom
Three River Bottom
Triple Bottom Candlestick Chart Pattern
Three Mountains
or
Triple Top
Three River Bottom Breakout Chart
Three Top Breakout Chart
Three Inside Down Formation
Rising Three Method
and
Bullish Harami
Shooting Start at Resisten Line
Bearish Engulfing Pattern
Bearish Engulfing Pattern at Resistant Line
Bullish Engulfing Pattern at Support Line
Bullish Engulfing Pattern at Support Line
Morning Start at Support Line
