7/28/2019 Top 5 Most Consistent Candlestick Patterns _ Candlestickgenius

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Top 5 Most Consistent Candlestick Patterns

Some say the power of candlesticks partially stems from a self-fulfilling prophecy. The tremendous

volume of traders who utilize candlestick charts translate into predictable market movements based upon

certain formations. The truth is however thats a bunch of BS the reason they work is because they

pinpoint the underlying emotions of the market as a whole.

The following top 5 five candlestick formations are the most popular among technical analysts, and,

therefore, have the highest probability of producing the most reliable and consistent results.

Top 5 Most Consistent Candlestick Patterns

When is comes to the Top 5 Most Consistent Candlestick Patterns these take the cake

Doji Formations

Doji formations, such as dragonfly and tombstone, are widely regarded as strong indicators of a

probable reverse. They both consist of a single horizontal line indicating that both the closing andopening prices were identical. As a result, there is no body, and the wick is either rising for a gravestone

Doji or falling for a dragonfly Doji. The gravestone pattern implies depleted bullish sentiment and,

consequently, a downward movement will subsequently appear. A dragonfly pattern is naturally an

opposite bullish type of signal.

Piercing and Cloud Cover Formations

Both of these formations are basically mirror images of each other and represent reversal signal

patterns. The piercing pattern consists of a long black candlestick followed by a long white one that

closes over halfway up the first candlestick. The implication is that market participants, who sold on the

first day in anticipation of a continuing downward movement, had to cover their shorts, and, as a result,

prices rose and will likely continue in that direction. The cloud cover pattern, on the other hand, is a

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7/28/2019 Top 5 Most Consistent Candlestick Patterns _ Candlestickgenius

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bearish indicator for similar reasons and is formed by a long white candlestick followed by a long black

one that closes over halfway below the first candlestick.

Engulfing Formations

This pattern and the doji candlestick are likely top on the list of the Top 5 Most Consistent Candlestick

Patterns. The bullish engulfing formation consists of a short blackbody candlestick followed by a taller

white bodied candlestick that begins below and ends above the previous days trading range.This

means prices on the second day opened lower than the first and closed higher. This is a highly bullish

formation and indicates a long position should be considered.

A bearish engulfing pattern would be the opposite with a short white bodied candlestick followed by a

longer black bodied candlestick. Here the signal is bearish and consideration should be made for selling

short.

Hammer and Shooting Star Formations

These patterns are basically short candles with one long wick. For the hammer, the wick points

downwards, whereas for the shooting star, it points upwards. The hammer is considered bullish in that

price action clearly was able to reverse all selling sentiment, while the shooting star would be viewed as

bearish for a similar reasoning logic.

Harami Formations

A bullish Harami consists of a long black candlestick with a close near the low, followed on the next day

by a short white candlestick. This indicator is interpreted as signaling that selling pressure dominated

the market on the first day, but was halted on the second, suggesting that upward movement in prices

will continue. A bearish Harami has the exact opposite structure and interpretation.

Top 5 Most Consistent Candlestick Patterns

When it comes to what can be relied on almost all by itself without any other technical indicators it is

definitely these 5 patterns. When it comes to the Top 5 Most Consistent Candlestick Patternsyou can

almost always count on these candlestick patterns.

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