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Top 10 Candlestick Patterns

There are hundreds, if not thousands, of candlestick patterns that have been identified and used by

investors to enhance trading performance. Candlestick indicators are best used in conjunction with other

analytical tools in order to produce optimum performance. Here are the top 10 candlestick

patterns which should be considered by all traders for their investment activities are the following:

The top 10 candlestick patterns are the patterns that are found most often and have proven to be the

mot reliable.

The top 10 candlestick patterns #1 Dark Cloud Cover: This is a two-day formation

which arises when the candlestick formed on the first day has a long white body followed

by an opposite colored candlestick, which opened at a new high only to close below is the

midpoint of the previous days trading. This pattern is considered a bearish reversal

signal.

The top 10 candlestick patterns #2 Doji: When the opening and closing price are

essentially the same, the candlestick formed resembles a plus sign, cross, or inverted

cross and is referred to as Doji. It represents indecision on the part of the market, and is

interpreted by traders that a turning point is imminent.

The top 10 candlestick patterns #3 Engulfing Pattern: This is a two-day pattern

where the first days body is smaller than the subsequent candlestick, and they are both of

opposite colors. This pattern is considered bearish when it appears at the end of an

uptrend and bullish when it occurs in a down trending market.

The top 10 candlestick patterns #4 Evening Star: Commonly regarded as a bearish

reversal pattern, this three-day pattern consists of a long white body, followed by a smaller

gap up candlestick, with the third and final day closing below the midpoint of the first day.

As you can see the top 10 candlestick patterns are easy to recognize and understand. Try

and look at the patterns and understand them as opposed to memorizing them. Meaning try to

understand why price is likely to follow the pattern. If you want a fasttrack into candlestick pattern

trading, study theses top 10 candlestick patterns and you will be well on your way to applying the most

effective candlestick patterns to your trading.

For example the morning star doji price is coming down Price gaps down a little and then

demonstrates a slowing of this falling trend The next day it gaps up and shows strngth. This isbullish

Top 10 Candlestick Patterns

7/28/2019 Top 10 Candlestick Patterns _ Candlestickgenius

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The top 10 candlestick patterns #5Hammer: When trading occurs significantly below

the open, but ends well above the low and closes as its high, the candlestick formed has

only one tail below its body. When this formation occurs during a downtrend, it often

signals a reversal.

The top 10 candlestick patterns #6 Hanging Man: Identical to the Hammer, this

candlestick pattern occurs during an uptrend, and signals a continuation of the price

movement.

The top 10 candlestick patterns #7 Harami: This is a simple two day candlestick

pattern that has a relatively small body on the second day that is completely surpassed on

both sides by the previous days candlestick and is always of the opposite color. It usually

occurs during a minor correction in a bear or bull market and signals that this temporary

uptrend or downtrend is reaching an end, and the underlying trend will continue. It is

especially considered a strong indicator when it appears together with low trading volume.

The top 10 candlestick patterns #8 Morning Star: This formation is considered a

three day bullish reversal pattern that consists of a long bodied black first day, a short gap

down second day, followed by a third long white bodied candle, which closes above the

midpoint of the first day.

The top 10 candlestick patterns #9 Piercing Line: This is a two-day formation

considered to be a bullish reversal. The first is a continuation of a downtrend with a long

black body. The second day opens at a new low, but closes above the midpoint of the

previous days trading.

The top 10 candlestick patterns #10 Shooting Star: The opposite of the Hammer,

this is a one-day formation and occurs in an uptrend. Trading opens higher and trades

much higher but prices end near the low. This pattern is viewed as a bearish reversal.

So when it comes to understanding and applying high probability candlestick patterns to your trades, be

sure and start with these top 10 candlestick patters ad they are the big money makers and the most

reliable of all the patterns.