CandleStick Basics

Candlesticks are graphical representations of price movements for a given period of time. They are commonly formed by the opening, high, low, and closing prices.

If the opening price is above the closing price then normally a red candlestick is drawn.

If the closing price is above the opening price, then normally a green candlestick is shown.

The filled or hollow portion of the candle is known as the body or real body, and can be long, normal, or short depending on its proportion to the lines above or below it.

The lines above and below, known as shadows, tails, or wicks represent the high and low price ranges within a specified time period. However, not all candlesticks have shadows.

Anatomy of a Candle

Simple Patterns

Big Green Candle Has an unusually long green body with a wide range between high and low of the day. Prices open near the low and close near the high. Considered a bullish pattern.
Big Red Candle Has an unusually long red body with a wide range between high and low. Prices open near the high and close near the low. Considered a bearish pattern.
Green Body Candle Formed when the closing price is higher than the opening price and considered a bullish signal.
Red Body Candle Formed when the opening price is higher than the closing price. Considered to be a bearish signal.
Hammer A green (can be red also) candlestick that consists of a small body near the high with a little or no upper shadow and a long lower tail. Considered a bullish pattern during a downtrend.
Inverted Hammer A green (can be red also) candlestick in an upside-down hammer position. If found after a downtrend and is usually taken to be a reversal signal.
Shooting Star A green (can be red also) candlestick that has a small body, a long upper shadow and a little or no lower tail. Considered a bearish pattern in an uptrend.
Inverted Red Hammer A red body in an upside-down hammer position. Usually considered a bottom reversal signal.
Long Upper Shadow A red (can be green also) with an upper shadow that has a length of 2/3 or more of the total range of the candlestick. Normally considered a bearish signal when it appears around price resistance levels.
Long Lower Shadow A green (can be red also) with candlestick is formed with a lower tail that has a length of 2/3 or more of the total range of the candlestick. Normally considered a bullish signal when it appears around price support levels.
Hanging Man A red (can be green also) candlestick that consists of a small body near the high with a little or no upper shadow and a long lower tail. The lower tail should be two or three times the height of the body. Considered a bearish pattern during an uptrend.
Shaven Head A green (can be red also) candlestick with no upper shadow. [Compared with hammer.]
Shaven Bottom A red (can be green also) candlestick with no lower tail. [Compare with Inverted Hammer.]
Marubozu A long or a normal candlestick (red or green) with no shadow or tail. The high and the lows represent the opening and the closing prices. Considered a continuation pattern.
Spinning Top A green (can be red also) candlestick with a small body. The size of shadows can vary. Interpreted as a neutral pattern but gains importance when it is part of other formations.
Dragonfly Doji Formed when the opening and the closing prices are at the highest of the day. If it has a longer lower shadow it signals a more bullish trend. When appearing at market bottoms it is considered to be a reversal signal.
Gravestone Doji Formed when the opening and closing prices are at the lowest of the day. If it has a longer upper shadow it signals a bearish trend. When it appears at market top it is considered a reversal signal.
Doji Formed when opening and closing prices are virtually the same. The lengths of shadows can vary. Represents indecision in the market.
Long-Legged Doji Consists of a Doji with very long upper and lower shadows. Indicates strong forces balanced in opposition.

Complex Patterns

Bearish Harami Consists of an unusually large green body followed by a small red body (contained within large green body). It is considered as a bearish pattern when preceded by an uptrend.
Bearish Harami Cross A large green body followed by a Doji. Considered as a reversal signal when it appears at the top.
Bearish 3-Method Formation A long red body followed by three small bodies (normally green) and a long red body. The three green bodies are contained within the range of first red body. This is considered as a bearish continuation pattern.
Bullish 3-Method Formation Consists of a long green body followed by three small bodies (normally red) and a long green body. The three red bodies are contained within the range of first green body. This is considered as a bullish continuation pattern.
Bullish Harami Consists of an unusually large red body followed by a small green body (contained within large red body). It is considered as a bullish pattern when preceded by a downtrend.
Bullish Harami Cross A large red body followed by a Doji. It is considered as a reversal signal when it appears at the bottom.
Dark Cloud Cover Consists of a long green candlestick followed by a red candlestick that opens above the high of the green candlestick and closes well into the body of the green candlestick. It is considered as a bearish reversal signal during an uptrend.
Engulfing Bearish Line Consists of a small green body that is contained within the followed large red candlestick. When it appears at top it is considered as a major reversal signal.
Engulfing Bullish Consists of a small red body that is contained within the followed large green candlestick. When it appears at bottom it is interpreted as a major reversal signal.
Evening Doji Star Consists of three candlesticks. First is a large green body candlestick followed by a Doji that gap above the green body. The third candlestick is a red body that closes well into the green body. When it appears at the top it is considered as a reversal signal. It signals more bearish trend than the evening star pattern because of the doji that has appeared between the two bodies.
Evening Star Consists of a large green body candlestick followed by a small body candlestick (red or green) that gaps above the previous. The third is a red body candlestick that closes well within the large green body. It is considered as a reversal signal when it appears at top level.
Falling Window A window (gap) is created when the high of the second candlestick is below the low of the preceding candlestick. It is considered that the window should be filled with a probable resistance.
Morning Doji Star Consists of a large red body candlestick followed by a Doji that occurred below the preceding candlestick. On the following day, a third green body candlestick is formed that closed well into the red body candlestick which appeared before the Doji. It is considered as a major reversal signal that is more bullish than the regular morning star pattern because of the existence of the Doji.
Morning Star Consists of a large red body candlestick followed by a small body (red or green) that occurred below the large red body candlestick. On the following day, a third green body candlestick is formed that closed well into the red body candlestick. It is considered as a major reversal signal when it appears at bottom.
On Neckline In a downtrend, Consists of a red candlestick followed by a small body green candlestick with its close near the low of the preceding red candlestick. It is considered as a bearish pattern when the low of the green candlestick is penetrated.
Three Black Crows Consists of three long red candlesticks with consecutively lower closes. The closing prices are near to or at their lows. When it appears at top it is considered as a top reversal signal.
Three White Soldiers Consists of three long green candlesticks with consecutively higher closes. The closing prices are near to or at their highs. When it appears at bottom it is interpreted as a bottom reversal signal.
Tweezer Bottoms Consists of two or more candlesticks with matching bottoms. The candlesticks may or may not be consecutive and the sizes or the colours can vary. It is considered as a minor reversal signal that becomes more important when the candlesticks form another pattern.
Tweezer Tops Consists of two or more candlesticks with matching tops. The candlesticks may or may not be consecutive and the sizes or the colours can vary. It is considered as a minor reversal signal that becomes more important when the candlesticks form another pattern.
Doji Star Consists of a red or a green candlestick followed by a Doji that gap above or below these. It is considered as a reversal signal with confirmation during the next trading day.
Piercing Line Consists of a red candlestick followed by a green candlestick that opens lower than the low of preceding but closes more than halfway into red body candlestick. It is considered as reversal signal when it appears at bottom.
Rising Window A window (gap) is created when the low of the second candlestick is above the high of the preceding candlestick. It is considered that the window should provide support to the selling pressure.

References:

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(modified to emphasis the word and points)