Scribd
Upload
94 views2 pages

Basic Candlestick Patterns Guide

Uploaded by

Basavaraj G
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
94 views2 pages

Basic Candlestick Patterns Guide

Uploaded by

Basavaraj G
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Basic Candlestick Patterns - A Guide

Basic Candlestick Patterns - Quick Guide:

Candlestick patterns help traders predict future price movements based on historical patterns.

1. Bullish Engulfing:

- A large green candle engulfs the previous small red candle.

- Indicates a potential reversal from a downtrend to an uptrend.

- Shows strong buying pressure.

2. Bearish Engulfing:

- A large red candle engulfs the previous small green candle.

- Indicates a potential reversal from an uptrend to a downtrend.

- Shows strong selling pressure.

3. Hammer:

- A small body near the top of the candle with a long lower wick.

- Often appears after a downtrend, signaling a potential reversal to the upside.

- Indicates that buyers have started to push the price up after a period of selling.

4. Shooting Star:

- A small body near the bottom of the candle with a long upper wick.

- Often appears after an uptrend, signaling a potential reversal to the downside.

- Indicates that sellers are starting to take control after an initial surge by buyers.

5. Doji:

- A candlestick with a very small body, where the open and close prices are very close.
- Represents market indecision, where neither buyers nor sellers are in control.

- A Doji at the top of an uptrend or bottom of a downtrend could signal a potential reversal.

6. Morning Star:

- A three-candle pattern: a long red candle, followed by a small body candle (red or green), and a

long green candle.

- Indicates a reversal from a downtrend to an uptrend.

- Strong buying pressure follows a period of selling.

7. Evening Star:

- A three-candle pattern: a long green candle, followed by a small body candle (red or green), and a

long red candle.

- Indicates a reversal from an uptrend to a downtrend.

- Strong selling pressure follows a period of buying.

Conclusion:

Understanding basic candlestick patterns can help you identify potential market reversals and

trends, aiding in making better trading decisions.

You might also like