How Do I Interpret Candlesticks Patterns? - Candlesticks Explained

Analyzing Technical Candlesticks Patterns Trading Signals - This candlesticks tutorial will show you how to analyze the various candlesticks patterns used in trading the market.

Learn Basic of Analyzing Technical Candles Patterns

Doji Candles Explained

Doji is a candlesticks pattern with the same opening and closing price. There are various types of doji candlesticks pattern which form on charts.

following examples explain various patterns of the doji candlestick:

Long legged doji candles pattern has long upper & lower shadows with opening and closing price at the middle. When Long legged doji appears on a chart it indicates indecision between currency traders, buyers & the sellers.

Shown Below is example screenshot image of the Long Legged Doji candlesticks pattern

Doji Candle Pattern - Doji Candles Discussed

Doji Candlestick Pattern - Doji Candles Discussed

Marubozu Candles Explained

Marubozu candles pattern are long candles that have no upper or lower shadows, Like the examples shown below.

Marubozu Candle Sticks - Marubozu Candlesticks Discussed

Marubozu candles pattern are continuing candle patterns that show price is going to continue in same direction as that of the marubozu candlestick. The marubozu candlesticks pattern can be white/blue or Black/red depending on direction of the market trend.

Spinning Top Candlesticks Candles Explained

Spinning tops candles pattern have a small body with long upper & lower shadows. These spinning top candles are referred to by this term because these candlesticks formations are similar to spinning top on a matchstick.

The upper and lower shadows of the spinning top candlesticks pattern are longer than the body. The example below shows the spinning top candles pattern. You can look for pattern in your MetaTrader 4 Platform charts. The example below shows a screen-shot to help traders when it comes to learning & understanding these candles pattern.

How Do I Interpret Candle Charts - Spinning Tops Candlesticks Discussed

Colour of the spinning top candle candlesticks pattern is not important, this formation shows indecision between buyers and sellers in the market. When these patterns form at the top of a trend or at the bottom of trend it might signal that the market trend is coming to an end and it might soon reverse and begin going in the opposite direction. However, it is better to wait for confirmation trade signals that direction of a currency has reversed before taking the signal from this candles pattern formation.

Hammer Candlestick Trading Pattern and Hanging Man Candles Trading Pattern Explained

Hammer Candle Setup & Hanging Man Candlestick Setup candles look alike but hammer is bullish reversal candlesticks pattern & hanging man is a bearish reversal candlesticks pattern.

Hammer Candlestick Pattern & Hanging Man Candle Setup Candles - Candlesticks Discussed

Hammer Candles Explained

Hammer candles pattern is a potentially bullish candle pattern that forms during a downtrend. It's named so because the market is hammering a bottom.

Hanging Man Candles Explained

This hanging man candles pattern is a potentially bearish reversal signal which forms during a uptrend. It's named so because it resembles a man hanging on a noose up high.

Hanging Man Candle Setup - Candlesticks Discussed

Inverted Hammer Candles Explained

This is a bullish reversal candlesticks pattern. It forms at the bottom of a trend.

Inverted hammer candle-sticks pattern occurs at the bottom of a downtrend and indicates the possibility of market reversal of the downward trend.

Inverted Hammer Candlestick Setup - Candlesticks Discussed

Shooting Star Candles Explained

Shooting Star is a bearish reversal candles pattern. It occurs at the top of market trend.

Shooting Star candles pattern occur at the top of an uptrend in the market where the open price is same as the low and price then rallied upward but was forced back downward to close at near the open.

Shooting Star Candlestick - Candlesticks Discussed

Piercing Line Candles Explained

Piercing line candle setup is a long black body followed by a long white body candles.

White body pierces the midpoint of the prior black body.

This Piercing Line candles pattern is a bullish reversal candle-sticks pattern that occurs at the bottom of a market downtrend. It shows that the market opens lower and closes above the midpoint of the black body.

This Piercing Line candles pattern displays that the momentum of the downtrend is reducing and the market trend is likely to reverse & move in an upward direction.

This Piercing Line candles pattern is displayed known as a piercing line signifying the market is piercing the bottom illustrating a market floor for currency price downward trend.

Piercing Line Candlestick Setup - Candlesticks Discussed

Dark Cloud Cover Candles Explained

Opposite of piercing candle candle-stick.

This candle-stick is a long white body followed by a long black body.

The black body pierces the mid-point of previous white body.

This is a bearish reversal pattern which forms at the tops of an uptrend.

Dark Cloud candles pattern displays that market opens higher and closes below the midpoint of the white body.

Dark Cloud candles pattern displays that the momentum of the uptrend is reducing and the market trend is likely to reverse & move in a downward trading direction.

Dark Cloud candles pattern is illustrated referred to as a cloud cover signifying the cloud as a ceiling for the currency price upward trend.

Dark Cloud Cover Candlestick Setup - Candlesticks Discussed

Morning Star Candles Explained

Morning Star Candle Setup - Candlesticks Discussed

Evening Star Candles Explained

Opposite of morning star candles pattern

Evening Star Candle Setup - Candlesticks Discussed

Engulfing Candle Sticks Patterns - Candles Explained

Engulfing is a reversal candle-sticks pattern which can be bearish or bullish depending upon whether it appears at end of a market downtrend or at the end of a market uptrend.

Bullish & Bearish Engulfing Candlesticks Patterns - Candlesticks Discussed

How Do I Analyze a Candlestick Pattern? - Candles Patterns Discussed