Candlestick Types Flashcards
Learning the main candlesticks and what they signal. (23 cards)
What is a Bullish Engulfing candlestick pattern?
A two-candle reversal pattern where a small red candle is followed by a large green candle that completely engulfs the body of the red one. It suggests a potential bullish reversal, especially at the end of a downtrend.
What is a Bearish Engulfing candlestick pattern?
A two-candle reversal pattern where a small green candle is followed by a larger red candle that completely engulfs the green one. It indicates a potential bearish reversal at the end of an uptrend.
What is a Hammer candlestick pattern?
A bullish reversal pattern with a small body at the top and a long lower wick. It usually appears after a downtrend and shows that buyers pushed the price up after early selling pressure.
What is an Inverted Hammer candlestick pattern?
A bullish reversal pattern that looks like an upside-down hammer, with a small body and a long upper wick. It shows potential reversal after a downtrend but needs confirmation.
What is a Shooting Star candlestick pattern?
A bearish reversal pattern with a small body at the bottom and a long upper wick. Appears after an uptrend, showing that buyers tried to push price higher but failed.
What is a Morning Star candlestick pattern?
A three-candle bullish reversal pattern with: 1) a long red candle, 2) a small indecisive candle (like a Doji or spinning top), and 3) a strong green candle. Signals a shift from selling to buying pressure.
What is an Evening Star candlestick pattern?
A three-candle bearish reversal pattern with: 1) a long green candle, 2) a small indecisive candle, and 3) a strong red candle. Signals potential reversal after an uptrend.
What is a Doji candlestick pattern?
A candle where the open and close prices are nearly the same, forming a small or non-existent body. It signals indecision and a possible reversal when found at trend tops or bottoms.
What is a Dragonfly Doji?
A type of Doji with a long lower wick and no upper wick. It suggests a possible bullish reversal, especially after a downtrend.
What is a Gravestone Doji?
A Doji with a long upper wick and no lower wick, indicating potential bearish reversal after an uptrend.
What is a Spinning Top candlestick pattern?
A candle with a small body and long wicks on both sides. It represents indecision in the market and often precedes a reversal or continuation.
What is a Marubozu candlestick pattern?
A candle with no wicks—just a full body. A green Marubozu signals strong bullish momentum; a red Marubozu signals strong bearish momentum.
What is a Piercing Line candlestick pattern?
A bullish reversal pattern. It starts with a red candle, followed by a green candle that opens below the previous close and closes above the midpoint of the red candle.
What is a Dark Cloud Cover candlestick pattern?
A bearish reversal pattern. It starts with a green candle, followed by a red candle that opens above and closes below the midpoint of the previous green candle.
What is a Harami candlestick pattern?
A two-candle pattern where a large candle is followed by a small candle that is completely inside the previous one’s body. A bullish Harami occurs after a downtrend; bearish Harami after an uptrend.
What is an Inside Bar candlestick pattern?
A candle that forms completely within the high and low range of the previous candle. It signals consolidation and potential breakout in either direction.
What is an Outside Bar candlestick pattern?
A candle that completely engulfs the range of the previous candle (both high and low). It often signals strong momentum or reversal.
What is a Tweezer Bottom candlestick pattern?
A two-candle bullish reversal pattern where both candles have nearly the same low. Usually seen at the end of a downtrend.
What is a Tweezer Top candlestick pattern?
A two-candle bearish reversal pattern with nearly the same highs. Seen at the end of an uptrend.
What is a Three White Soldiers pattern?
A bullish reversal pattern consisting of three consecutive long green candles with higher closes, typically following a downtrend.
What is a Three Black Crows pattern?
A bearish reversal pattern made up of three consecutive long red candles with lower closes, usually after an uptrend.
What does a long lower wick indicate?
Buying pressure; price was pushed down but buyers stepped in and drove it back up. It may indicate a potential reversal or support.
What does a long upper wick indicate?
Selling pressure; price was pushed up but sellers took control. It may suggest resistance or a potential reversal.
