Category: 1. Top Candlesticks Chart Patterns

What Does On-neck Mean? On neck means on the neckline. In this pattern, two candles form a neckline. On neck is a metaphor. This candlestick pattern that appears on the chart looks like two candles are catching one another’s neck. I feel this pattern has been aptly named. Why This Candlestick Pattern is Named On-Neck?…

Three Outside Up Candlestick Pattern What is the Three Outside Up Candlestick Pattern? The three outside up is noticeably a reversal pattern. Appearing in a downtrend, preferably at the end of the downtrend, this candlestick pattern consists of three consecutive candles that form this pattern. The first candle is red which is a part of…

The inverted hammer is a variation of the regular hammer pattern. Typically, it’s easy to identify a hammer pattern though there are exceptions. Of course, there are instances where the inverted hammer is mistaken as a shooting star pattern. They look almost identical with a small real body and a long upper shadow, but it…

The Tweezer Bottom candlestick pattern is a bullish reversal candlestick pattern that is formed at the end of the downtrend. It consists of two candlesticks, the first one being bearish and the second one being bullish candlestick. Both the candlesticks make almost or the same low.When the Tweezer Bottom candlestick pattern is formed the prior trend is…

Definition, bearish and bullish A Harami candlestick is one of the several types of Japanese candlestick patterns. The name harami comes from the Japanese word for pregnant. As the name suggests, it has it is made up of a large bullish or bearish candle that is followed by a smaller one of the opposite colour. A bullish harami is made of…

What is the Three Inside Up/Down Pattern? Three inside up and three inside down are three-candle reversal patterns that form on candlestick charts. The pattern needs three candles to form in a particular sequence, indicating that the current trend has lost momentum and a move in the other direction might be starting. Three Inside Up pattern…

What is Opening Marubozu? Now, this a textbook perfect definition and a rather rare occurrence. A perfect Marubozu is extremely rare on a daily or weekly chart, however, in the intraday charts, they may be observed during periods of very volatile and strong movements. A more practical version of this japanese candlestick is the Opening…

What is Three White Soldiers Candlestick Pattern? The three white soldiers pattern is a bullish reversal candlestick pattern that occurs at the bottom of a downtrend. As the name suggests, this pattern consists of three candlesticks that are green in color. This candlestick pattern signals an upcoming uptrend because of the strong buying pressure. These…

This candlestick pattern consists of three consecutive candlesticks. Usually formed at the bottom of a downtrend, this prominently visible pattern tells you there’s a new morning to come after the downtrend. The trader interprets this pattern and gets alerted to an imminent upward reversal of the stock price. In the diagram above we can notice…

 Bullish Engulfing: What Is a Bullish Engulfing Candle? The bullish engulfing candlestick pattern refers to a bullish trend reversal when preceded by a cluster of red or black candlesticks showing a bearish trend. It is useful for signaling the start of a new uptrend, as the bullish green or white candle body completely surrounds or…