Simple Patterns
There are multiple forms of candlestick chart patterns, with the simplest depicted at right. Here is a quick overview of their names:
1)White candlestick - signals uptrend movement (those occur in different lengths; the longer the body, the more significant the price increase)
2)Black candlestick - signals downtrend movement (those occur in different lengths; the longer the body, the more significant the price decrease)
3)Long lower shadow - bullish signal (the lower wick must be at least the body's size; the longer the lower wick, the more reliable the signal)
4)Long upper shadow - bearish signal (the upper wick must be at least the body's size; the
longer the upper wick, the more reliable the signal)5)Hammer - a bullish pattern during a downtrend (long lower wick and small or no body); Shaven head - a bullish pattern during a downtrend & a bearish pattern during an uptrend (no upper wick);
6)Hanging man - bearish pattern during an uptrend (long lower wick, small or no body; wick has the multiple length of the body.Inverted hammer - signals bottom reversal, however confirmation must be obtained from next trade (may be either a white or black body);Shaven bottom - signaling bottom reversal, however confirmation must be obtained from next trade (no lower wick);Shooting star - a bearish pattern during an uptrend (small body, long upper wick, small or no lower wick)
7)Spinning top white - neutral pattern, meaningful in combination with other candlestick patterns
8)Spinning top black - neutral pattern, meaningful in combination with other candlestick patterns
9)Doji - neutral pattern, meaningful in combination with other candlestick patterns
10)Long legged doji - signals a top reversal
11)Dragonfly doji - signals trend reversal (no upper wick, long lower wick)
12)Gravestone doji - signals trend reversal (no lower wick, long upper wick)
13)Marubozu white - dominant bullish trades, continued bullish trend (no upper, no lower wick)
14)Marubozu black - dominant bearish trades, continued bearish trend (no upper, no lower wick)
