Category: Candlesticks

  • How to Trade the Doji Candlestick Pattern

    Doji is a japanese word that means blunder, or mistake. In trading, it refers to a candlestick with an identical, or virtually identical, open and close price. Perhaps the Japanese considered it a blunder by the market to have an entire trading session with no meaningful result. For technical traders,…

  • How to Trade The Spinning Top Candlestick Pattern

    The spinning top candlestick pattern is a variation of the doji candlestick. But in addition to meeting the criteria for the doji candle, a spinning top features a candle body located in the center of the trading range. Another name for this candle is the long-legged doji. Because this candle…

  • How to Trade The Inside Bar (Harami) Candlestick Pattern

    The harami candlestick pattern depicts price struggling to break out in either direction during a trend. Traders often call it this occurrence an “inside day” or “inside bar” instead. So where did the name harami come from? The Japanese say “harami” to mean pregnant. In Urdu, it means illegitimate child.…

  • How to Trade The Hanging Man Candlestick Pattern

    The hanging man is a single candle pattern with the same shape as the hammer. It gets its name from the fact that it has a candle body near the top and a long lower wick, resembling a man hanging in the air. Knowing this, you can probably guess where…

  • How to Trade The Gravestone Doji Candlestick Pattern

    The gravestone doji, or shooting star, is a single candle pattern that resembles the inverted hammer. I will refer to it as gravestone doji throughout this article and others, though you may call it something else. If this candle appears after an extended bullish run, it is a powerful signal…

  • How to Trade The Inverted Hammer Candlestick Pattern

    The inverted hammer candlestick is a single candle pattern in which the candle forms an upside-down “T”. If the body of the candle is so small that it has the same open and closing price, the term doji can apply. Traders refer to this candle with other names, such as…

  • How to Trade The Hammer Candlestick Pattern

    The hammer candlestick is a single candle pattern in which the shape of the candle resembles a “T”. Its name can vary depending on where the candles appears and small variations in its shape. If it takes place after an extended selloff, traders call it a hammer, or a dragonfly.…

  • How to Trade The Bearish Engulfing Candlestick Pattern

    The bearish engulfing is a candlestick pattern that technical traders use to identify an area of weakness. It involves a pair of candles, in which the second candle serves as a signal for technical traders to open a short, or close a long, right before the market begins selling off.…

  • How to Trade The Bullish Engulfing Candlestick Pattern

    The bullish engulfing is a candlestick pattern that technical traders use as a buy signal. It involves a pair of candles that show a sudden rise in buying pressure. Technical traders use this as a clue to open a long, or close a short, anticipating a bullish run. What does…