Reversal "Top & Bottom" Candlestick Dictionary

Bearish Harami:

Pattern: Consists of two candlesticks: A very large white body followed by a small black body that is contained within the previous bar.

Interpretation: A bearish pattern when preceded by an up trend.

Bearish Harami Cross:

Pattern: Consists of two candlesticks: A Doji contained within a large white body.

Interpretation: A top reversal signal

Pattern: Consists of two candlesticks: A very large black body is followed by a small white body and is contained within the black body.

Interpretation: A bullish pattern when preceded by a downtrend.

Pattern: Consists of two candlesticks: A Doji contained within a large black body.

Interpretation: A bottom reversal pattern.

Dark Cloud Cover :

Pattern: Consists of two candlesticks: A long white body followed by a black body. The following black candlestick opens higher than the white candlestick's high and closes at least 50% into the white candlestick's body.

Interpretation: A bearish reversal signal during an up trend.

Doji:

Pattern: The open and close price are the same.

Interpretation: Dojis are usually components of candlestick patterns. This candlestick assumes more importance the longer the upper and lower wicks. Bullish or Bearish bias is based on the prior trend (up or down) and future confirmation.


Doji Star:

Pattern: Consists of two candlesticks: A Doji which gaps above or below a white or black candlestick.

Interpretation: A reversal signal confirmed by the next candlestick (eg. a long white candlestick would confirm a reversal up).

Engulfing Bearish Line:

Pattern: Consists of two candlesticks: A small white body followed by and contained within a large black body.

Interpretation: A bearish reversal signal after an up trend.

Engulfing Bullish Line:

Pattern: Consists of two candlesticks: A small black body followed by and contained within a large white body.

Interpretation: A bottom reversal signal.

Evening Doji Star:

Pattern: Consists of 3 candlesticks: A large white body followed by a Doji that gaps above the white body. The third candlestick is a black body that closes 50% or more into the white body.

Interpretation: A top reversal signal, more bearish than the regular evening star pattern.

Evening Star :

Pattern: Consists of 3 candlesticks: A large white body followed by a small body that gaps above the white body. The third candlestick is a black body that closes 50% or more into the white body.

Interpretation: A bearish reversal signal.

Gravestone Doji:

Pattern: The open and close are at the low of the candlestick + long upper wick.

Interpretation: A bearish reversal signal. The longer the upper wick, the more bearish the signal.

Hammer:

Pattern: A small body near the high with a long lower wick with little or no upper wick.

Interpretation: A bullish pattern during a downtrend.


Hanging Man:

Pattern: A small body near the high with a long lower wick with little or no upper wick. The lower wick should be several times the height of the body.

Interpretation: A bearish pattern during an up trend.

Inverted Hammer:

Pattern: An upside-down hammer with a white or black body.

Interpretation: A bottom reversal signal with confirmation the next trading bar.

Long Legged Doji :

Pattern: A Doji pattern with long upper and lower wicks that are almost equal in length.

Interpretation: Reflect market indecision.

Morning Doji Star :

Pattern: Consists of 3 candlesticks: A large black body followed by a Doji that gaps below the black body. The next candlestick is a white body that closes 50% or more into the black body.

Interpretation: A bottom reversal signal.


Morning Star :

Pattern: Consists of 3 candlesticks: A large black body followed by a small body that gaps below the black body. The following candlestick is a white body that closes 50% or more into the black body.

Interpretation: A bottom reversal signal.

Piercing Line :

Pattern: Consists of two candlesticks: A black candlestick followed by a white candlestick that opens lower than the black candlestick's low, but closes 50% or more into the black body.

Interpretation: A bottom reversal signal.

Shaven Bottom:

Interpretation: A bottom reversal signal with confirmation the next trading bar.

Pattern: A candlestick with no lower wick.


Shaven Head:

Pattern: A candlestick with no upper wick.

Interpretation: A bullish pattern during a downtrend and a bearish pattern during an up trend.

Shooting Star:

Pattern: A candlestick with a small body, long upper wick, and little or no lower wick.

Interpretation: A bearish pattern during an up trend.

Spinning Top:

Pattern: A candlestick with a small body (black or white), long upper wick and long lower wick.

Interpretation: A neutral pattern usually associated with other formations. Spinning Tops represent indecision.


Tweezer Bottoms:

Pattern: Two or more candlesticks with matching lows. The size or color of the candlestick does not matter.

Interpretation: Minor reversal signal.

Tweezer Tops:

Pattern: Two or more candlesticks with similar highs.

Interpretation: A minor reversal signal.

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