Candlestick Flashcards

Candlestickgenius Flash Cards The dragony doji. What happens here is the open, close and high are all the same price, but price did attempt a low that wasn’t wasn’t able to stick. This is a period of indecision, or some would say a period of agreement between the bears and the bulls that price is “fair”, at least for the time being. The fact that the low wasn’t sustained is actually a little bullish, but the other fact is that the o pen and the close were the same which is a bit bearish.

All in all the dragon dragon y doji should get your your attention. Coming off of an up trend this is a reasonably strong reversal signal. With conrmation conrmation this doji can be very reliable. The next doji is the Doji cross. This shows us an open and close that are identical, but there was a decent dec ent high and low during the day, and ironically price ended up closing at the open price. This is very similar similar to the dragony save the fact that price moved around a bit in both directions before closing right where it started hours earlier. (Daily.) http://www.candlestickgenius.com

The Bullish Engulng pattern demonstrates a pretty immediate change in sentiment. Remember that the rst candlestick closes below its open. In other words it opens, and then closes lower - bearish. The next candlestick (white) actually gaps down a bit appearing initially that its going to continue the downward movement, but then suddenly reverses and closes above the previous days open. Do you see the reason this this is a bullish pattern ? Look for a bullish engulng formation at the bottom of a short term trend down. 2 Candlestick bullish reversal pattern Bullish candlestick #2 completely engulfs #1

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Next is the bearish engulng formation. Exactly the opposite. The white candlestick opens, and goes on to close higher than it opened. - Bullish. The next candlestick then opens higher than the previous days close, a bullish start, as if its going to con tinue the trend, but then it falls to close below the previous days open.

2 Candlestick bearish reversal pattern. Bearish candlestick #2 completely engulfs #1.


The piercing line is a bullish reversal. We rst have a series of lower highs and lower lows. The last candlestick gaps down as if to be more bearish, but then ends up closing beyond the 50% point of the previous candlestick.

2 Candlestick bullish reversal pattern Candlestick #2 retraces to at least 50% of the rst candlestick #2 Candlestick open is less than or equal to (< or =) candle #1’s close.


Take a look at the dark cloud. You have a series of candlesticks making higher highs and higher lows. The last candlestick opens above the previous close, as if it was going to be even more bullish than the previous candlesticks, but then it fails immediately and closes well into the real body of the previous candlestick

2 Candlestick bearish reversal pattern Candlestick #2 retraces to at least 50% of the rst candlestick #2 Candlestick open is less greater than or equal to (> or =) candle #1’s open.


The kicker signal is a very powerful short term reversal signal. The kicker identies a very drastic change in market sentiment. Looking at the bullish kicker we see a down trend, then we instantly get an open that is at or above the previous candlesticks open and then price continues to head in the opposite direction.

2 Candlestick reversal pattern Candlestick # 2 opens higher than the previous open and continues up and closes higher than the open today.


The bearish kicker is identical, we have a stock that is up trending, and then an open that is less than the previous candlesticks open. The candlestick proceeds to close lower than the open. Take note as to the obvious dramatic change in market sentiment.

2 Candlestick reversal pattern Candlestick #2 opens lower than the previous open, and closes lower than today’s open.


A Harami is a signal to just take note of. Its basically telling you that a potential change is near. A bullish Harami forms when a stock is down trending. The signal candlestick then proceeds to open inside the real body of the previous candlestick, and then close higher than it opened, but lower than the previous days open. A bullish harami stays within the bounds of the previous candlestick, otherwise it can quickly turn into a bullish engulng or a piercing pattern depending upon the open. 2 Candlestick reversal pattern. Candlestick # 2 opens and closes within the connes of candlestick #1 AND closes higher than today’s open.


A bearish Harami is the same thing, coming off of a bullish trend the last candlestick opens well into the real body and then closes below the open, but also higher than the previous days open. A Harami looks like a backwards engulng pattern. This pattern is simply telling you that the bears (bulls) are losing steam, and that the bulls (bears) are probably taking over.

2 Candlestick reversal pattern. Candlestick #2 opens and closes within the connes of candlestick #1 AND closes lower than today’s open.


A bullish abandoned baby is a 3 candlestick reversal pattern where the rst candlestick is simply a reection of the prevailing trend. The doji is a small gap down and indicates that the bears are losing strength. Notice that the doji failed to make any bearish headway. The next day the stock gaps up and then closes higher than the open. The higher the close on this day the more powerful the signal. A bullish abandoned baby is a very high probability pattern. 3 Candlestick reversal pattern Candlestick #2 should gap down. Candlestick #3 should gap up.


Bearish abandoned baby is one where the overall trend is bullish, the rst candlestick continuing that trend. The doji candlestick gaps up but makes no bullish headway. This is telling us that the bullish trend may be over. The next day there’s a little gap down, and then the close is lower than the open, forming the strong and reliable abandoned baby.

3 Candlestick reversal pattern Candlestick # 2 should gap up. Candlestick # 3 should gap down.


An morning star doji is a 3 candlestick reversal pattern where the rst candlestick is simply a reection of the prevailing trend. The next day we get a doji that indicates that the bears are losing strength. Notice that the doji failed to make any bearish headway. The following day the stock opens and then closes higher than it opened.. The higher the close on this day the more powerful the signal. Must close at least thru the half way point of the rst candlestick in the pattern. A morning star doji is a very high probability pattern. 3 Candlestick reversal pattern Candlestick #2 is a doji Candlestick #3 is bullish, the longer the better the signal. No gap is necessary. http://www.candlestickgenius.com

An evening star doji is one where the overall trend is bullish, the rst candlestick continuing that trend. Then we have a doji candlestick that tells us that the bulls have pushed as far as they are going to right now. The very next day the stock open at or near the previous close and then continues to close lower than the open. The reversal has completed.

3 Candlestick reversal pattern Candlestick #2 is a doji Candlestick #3 is bearish, the longer the better the signal. No gap is necessary.


Bullish Three White Soldiers Pattern indicates a strong reversal in the market. It is characterized by three lon g candlesticks stepping upward like a staircase. Each day opens down from the previous days close but still closes higher than the previous close.

3 Candlestick Reversal Pattern. Each candlestick opens below the previous close. Each candlestick closes above the previous close.


This pattern consists of three consecutive long-bodied candlesticks that have closed lower than the previous day with each session’s open occurring within the body of the previous candle.

3 Candlestick reversal pattern Each open is greater than the previous close. Each close is less than the previous close.


A long white day in an up trend is followed by three relatively small candles that move opposite the overall trend but stay within the range of the rst day. The fth day is a long white day that closes above the close of the rst day and continues the up trend.

5 Candlestick continuation pattern. Candlesticks 2,3,and 4 stay within the range of candlestick #1


The Bearish Falling Three Methods Pattern is a continuation pattern, with a small 3 candles retracement of the rst candlestick. The pattern is characterized by a long black candlestick during a downtrend. It is then followed by small consecutive small bodies that look like a short up trend. These can be black or white candlesticks. These small bodies must all remain within the highlow range of the rst day’s black candlestick. The pattern is completed by a long black candlestick, closing at a new low and showing that bears are nally taking over. 5 Candlestick continuation pattern Candlesticks 2,3 and 4 stay within the range of candlestick #1.


The Bullish Three Inside Up Pattern is basically another name for the Conrmed Bullish Harami Pattern. The third candlestick simply conrms the reversal.

3 Candlestick Reversal Pattern Bullish Harami with conrmation


Like its predecessor, the three inside down is a bearish harami with conrmation.

3 Candlestick reversal pattern Bearish Harami with conrmation.


Candlestick Flashcards

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