35 TYPES OF CANDLESTICK PATTERNS
Certainly! Here's a brief explanation and definition of each of the 35 types of candlestick patterns:
1. Hammer: It occurs during a downtrend and indicates potential reversal. It has a small body
and a long lower shadow, resembling a hammer.
2. Piercing Pattern: It's a bullish reversal pattern that forms after a decline. It consists of a long
black candle followed by a white candle that closes more than halfway up the previous black
candle.
3. Bullish Engulfing: This pattern forms when a small bearish candlestick is followed by a larger
bullish candlestick that completely engulfs the previous one. It suggests a bullish reversal.
4. The Morning Star: It's a three-candle bullish reversal pattern. The first candle is bearish,
followed by a small-bodied candle with a lower close, and finally, a large bullish candlestick.
5. Three White Soldiers: This pattern consists of three long bullish candlesticks with
consecutively higher closes, suggesting a strong uptrend.
6. White Marubozu: It's a bullish candlestick with no upper or lower shadow, indicating strong
buying pressure throughout the session.
7. Three Inside Up: It's a bullish reversal pattern formed by three candlesticks. The first candle
is a long bearish one, followed by a small-bodied candle that's engulfed by the third bullish
candle.
8. Bullish Harami: This pattern consists of a large bearish candle followed by a small bullish
candle completely contained within the range of the previous candle. It signals a potential
bullish reversal.
9. Tweezer Bottom: It forms when two or more candlesticks have matching lows, indicating
potential support levels.
10. Inverted Hammer: It's a single candlestick pattern with a long upper shadow and a small
body at the bottom. It suggests a potential reversal after a downtrend.
11. Three Outside Up: This pattern occurs in a downtrend and consists of a large bearish candle,
followed by a small-bodied candle that's engulfed by a larger bullish candle.
12. On-Neck Pattern: It's a bearish continuation pattern where a long black candle is followed by
a small white candle that closes near the low of the black candle.
13. Bullish Counterattack - Bearish Candlestick Pattern: It's a single candlestick pattern where a
bearish candlestick's body is completely engulfed by the body of the following bullish
candlestick.
14. Hanging Man: It's a bearish reversal pattern formed by a small-bodied candlestick with a
long lower shadow, suggesting potential selling pressure.
15. Dark Cloud Cover: This bearish reversal pattern forms when a bullish candle is followed by a
bearish candle that opens above the previous day's high and closes below the midpoint of
the previous day's body.
16. Bearish Engulfing: This pattern forms when a small bullish candlestick is followed by a larger
bearish candlestick that completely engulfs the previous one, indicating a potential bearish
reversal.
17. The Evening Star: It's a three-candle bearish reversal pattern. The first candle is bullish,
followed by a small-bodied candle, and finally, a large bearish candlestick.
18. Three Black Crows: This bearish reversal pattern consists of three long bearish candlesticks
with consecutively lower closes, indicating a strong downtrend.
19. Black Marubozu: It's a bearish candlestick with no upper or lower shadow, indicating strong
selling pressure throughout the session.
20. Three Inside Down: It's a bearish reversal pattern formed by three candlesticks. The first
candle is a long bullish one, followed by a small-bodied candle that's engulfed by the third
bearish candle.
21. Bearish Harami: This pattern consists of a large bullish candle followed by a small bearish
candle completely contained within the range of the previous candle. It signals a potential
bearish reversal.
22. Shooting Star: It's a single candlestick pattern with a small real body near the bottom of the
candle and a long upper shadow. It suggests potential selling pressure.
23. Tweezer Top: It forms when two or more candlesticks have matching highs, indicating
potential resistance levels.
24. Three Outside Down: This pattern occurs in an uptrend and consists of a large bullish candle,
followed by a small-bodied candle that's engulfed by a larger bearish candle.
25. Bearish Counterattack – Continuation Candlestick Patterns: It's a single candlestick pattern
where a bullish candlestick's body is completely engulfed by the body of the following
bearish candlestick.
26. Doji: It's a single candlestick pattern where the open and close are virtually equal, indicating
indecision in the market.
27. Spinning Top: This pattern has a small real body and long upper and lower shadows,
indicating indecision between buyers and sellers.
28. Falling Three Methods: It's a bearish continuation pattern formed by a long bearish
candlestick followed by small-bodied candles that trade within the high-low range of the first
candlestick.
29. Rising Three Methods: This bullish continuation pattern forms when a long bullish
candlestick is followed by small-bodied candles that trade within the high-low range of the
first candlestick.
30. Upside Tasuki Gap: It's a bullish continuation pattern formed by a gap up followed by two
consecutive down days, where the second day's low does not overlap with the previous day's
high.
31. Downside Tasuki Gap: This bearish continuation pattern forms with a gap down followed by
two consecutive up days, where the second day's high does not overlap with the previous
day's low.
32. Mat-Hold: It's a bullish continuation pattern formed by a long white candle followed by a
series of small-bodied candles with higher lows, suggesting continued upward momentum.
33. All Candlestick Patterns: This is a generic term referring to all types of candlestick patterns
used in technical analysis.
These explanations provide a basic understanding of each candlestick pattern, but it's essential to
analyze them within the context of market trends and other indicators for effective trading decisions.
30-day
Absolutely! Here's a 30-day plan to kickstart your journey into the stock market and trading:
Day Task Description
Introduction to the Stock
Learn the basics of the stock market, including its purpose,
1
Market participants, and functions.
Understanding Market Dive into major stock market indices like the S&P 500,
2
Indices Dow Jones, and NASDAQ.
Basics of FundamentalExplore fundamental analysis techniques to evaluate a
3
Analysis company's financial health.
Introduction to Technical
Gain an understanding of technical analysis tools and how
4
Analysis to interpret stock charts.
Risk Management Learn about risk management techniques to protect your
5
Strategies capital in trading.
Types of Orders and Familiarize yourself with different types of orders used in
6
Execution trading and how they're executed.
Developing a Trading Start crafting a personalized trading plan based on your
7
Plan goals, strategies, and risk tolerance.
Paper Trading and Practice trading strategies in a simulated environment
8
Strategy Testing using paper trading accounts.
Reviewing Market NewsStay updated with market news and economic events to
9
and Updates understand their impact on trading.
Create a list of stocks you're interested in based on your
10 Building a Watchlist
research and analysis.
Understanding Economic Learn about key economic indicators such as GDP,
11
Indicators unemployment rates, and consumer confidence.
Introduction to Options Explore the basics of options trading and how options can
12
Trading be used in your trading strategy.
Reading Financial Dive deeper into reading and interpreting financial
13
Statements statements of companies.
Exploring Trading Familiarize yourself with different trading platforms
14
Platforms available for executing trades.
Setting Up a Trading Open a brokerage account to start trading stocks and
15
Account access trading platforms.
Understanding Market Learn about market orders and how they are used to buy
16
Orders or sell stocks at the current market price.
Understand how limit orders work and how to set price
17 Setting Limit Orders
limits for buying or selling stocks.
Introduction to Explore common candlestick patterns used in technical
18
Candlestick Patterns analysis and their significance.
Practicing Technical Practice analyzing stock charts and identifying trends,
19
Analysis patterns, and support/resistance levels.
Introduction to Forex Learn the basics of forex trading, including currency pairs,
20
Trading exchange rates, and trading strategies.
Reviewing Trading Review your trading performance, analyze past trades, and
21
Performance identify areas for improvement.
Understanding Order Learn about order execution processes and factors that can
22
Execution affect the speed and price of execution.
Exploring Risk-Reward Understand how risk-reward ratios are calculated and used
23
Ratios to evaluate potential trade opportunities.
Learn about position sizing strategies to determine the
24 Practicing Position Sizing
appropriate size for each trade.
Introduction to ETFs and Explore exchange-traded funds (ETFs) and mutual funds
25
Mutual Funds as investment alternatives to individual stocks.
Understand the importance of portfolio diversification and
26 Diversification Strategies
how to spread risk across different assets.
Exploring Advanced Dive deeper into advanced trading strategies such as
27
Trading Strategies swing trading, momentum trading, and trend following.
Reviewing Mid-Term Review your mid-term financial goals and assess your
28
Goals progress towards achieving them through trading.
Practicing Discipline and Develop discipline and patience as key traits for
29
Patience successful trading. Practice staying calm and focused.
Reviewing and Planning Reflect on your learning journey over the past 29 days and
30
Ahead plan for continued growth and improvement.
Make sure to allocate time each day to study and practice trading concepts. Utilize online
resources such as Investopedia, trading books, and demo accounts to enhance your learning
experience. Good luck on your trading journey!
