Types of Japanese candlesticks
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Doji: This candlestick occurs when there is indecision in the market. It forms when the opening and closing prices of the candlestick are practically the same. The length of the upper and lower shadows can vary. The doji looks like a cross, an inverted cross or a plus sign. |
 | Flying dragon: A doji that opens and closes at the candlestick high. It usually appears at bullish or bearish reversal points. |
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Tombstone: A doji that opens and closes at the candlestick low. It usually appears at bullish or bearish reversal points. |
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Long-legged dojis: Candlesticks with long upper and lower shadows and a doji in the middle of the range which clearly reflects traders' indecision. |
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Tops: Candlesticks with a short body and long upper and lower shadows that exceed the length of the body. Tops are an indicator of trader indecision. |
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Short candlestick: This type of candlestick displays a small price movement which indicates possible consolidation. |
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Long candlestick: Candlesticks with long bodies and short shadows suggest that the evolution of the market is primarily unidirectional. |
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Marubozu: A Japanese candlestick without a shadow suggests a strong bullish or bearish trend. |
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Star: A candlestick that appears isolated from previous price action, as it opens with a gap in a star position. |
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Hammer: A reversal pattern that forms in a downtrend. The candlestick looks like a square lollipop with a long stick. |
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Hanging man: A reversal pattern that forms in an uptrend. The candlestick looks like a square lollipop with a long stick. |
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Inverted hammer: A reversal pattern that is made up of a first candlestick with a long black body and a second one with a long upper shadow and a small body. |
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Shooting star: A reversal pattern that looks like an inverted hammer. The shooting star appears in an uptrend - the candlestick consisting of a small body and a long upper shadow opens with a bullish gap and closes near the opening price. |
 | Tasuki bullish gap: A continuation pattern which consists of a first black candlestick followed by another one that opens after a bearish gap. The third candlestick opens within the body of the second candlestick, then closes within the gap, but without filling the gap. |
 | Tasuki bearish gap: A continuation pattern that consists of a first white candlestick followed by another one that opens after a bullish gap. The third candlestick opens within the body of the second candlestick, then closes within the gap, but without filling the gap. |
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Engulfing: A bearish reversal pattern if it appears at the end of an uptrend (bearish engulfing) on a bullish reversal pattern if it appears at the end of a downtrend (bullish engulfing). The first candlestick has a small body that is completely engulfed by the body of the following candlestick. |
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Harami: A reversal pattern that is formed by 2 candlesticks with different colors, the second candlestick is completely contained within the range of the first one. |
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Harami cross: A reversal patter similar to the Harami, but more powerful, because the second candlestick is a doji. |
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Evening doji star: A reversal pattern made up of 3 candlesticks. The first is a bullish candlestick, the second one is a doji that opens on a gap and the third one closes below the midpoint of the first candlestick. This configuration is more powerful than the evening star. |
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Abandoned baby: A reversal pattern that is characterized by a gap followed by a doji, which is then followed by another gap in the opposite direction. The doji's shadows must be completely away from the shadows of the first and third candlesticks. |
 | Morning doji star: A bullish reversal pattern that is very similar to the morning star. The first candlestick is in a downtrend and features a long black body. The second one opens after a bearish gap with a doji that has small shadows. The last one closes above the midpoint of the first candlestick. |
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Evening star: A reversal pattern that forms in an uptrend. The first white candlestick is followed by a small black or white candlestick that opens after a bullish gap, the third one opens after a bearish gap opens and closes below the midpoint of the first candlestick. |
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Morning star: A reversal pattern which features 3 candlesticks - the first candlestick with a long black body extends the bearish trend, the second one has a small black or white body that opens after a bearish gap and the third one has a long white body which opens after a bullish gap and closes above the midpoint of the first candlestick. |
 | Three black crows: A bearish trend reversal which consists of three consecutive long black bodies that open within the body of the former candlestick and close near the low of the period. |
 | Three white soldiers: A bullish trend reversal which consists of three consecutive long white bodies that open in the former body and close near the high of the period. |
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Falling three methods: A bearish continuation pattern. A long black body is followed by three small black or white candlesticks that are entirely contained within the range of the first one. The fifth candlestick closes at a new low. |
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Rising three methods: A bullish continuation pattern. A long white body is followed by three small black or white candlesticks that are entirely contained within the range of the first candlestick. The fifth candlestick closes at a new high. |
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Penetrator: A bullish reversal pattern that forms in a downtrend with a long black body followed by another candlestick that opens at a new low and closes above the midpoint of the first candlestick. |
 | Dark cloud cover: A bearish reversal pattern that forms in an uptrend with a long white body followed by another candlestick that opens at a new high and closes below the midpoint of the first candlestick. |
