Candlestick Patterns

Question 1

What does a pinbar candlestick look like?
When does a pinbar work best?
What does a pinbar tell you?
What type of candle is it?
How is this pattern confirmed?

Answer 1

• long top wick and small body at the bottom
• works best at the top of an uptrend
• buyers may be getting weaker, buyers pushed the price up but sellers smashed it back down.
• a reversal candle
• a bearish candle after the pinbar

Question 2

What does the hanging man candlestick look like?
When does the handing man work best?
What does the hanging man tell you?
What type of candle is this?
How is this pattern confirmed?

Answer 2

• long bottom wick and small body at the top
• works best after an uptrend
• sellers have increased interest and could be moving the price down
• trend reversal candle
• a bearish candle after the hanging man

Question 3

What does a Marubozu candlestick look like?
When does a Marubozu work best?
What does a Marubozu tell you?
What type of candle is it?

Answer 3

• a long body with no wicks
• works best in a strong trend
• confirms the strength of a trend and shows there is no opposition fight
• a trend continuation candle

Question 4

What does a Doji candlestick look like?
What does a Doji tell you?
What type of candle is it?
How to confirm this pattern?

Answer 4

• tiny or near enough no body, with long or short wicks
• indecision in the market, current trend may be slowing down
• a neutral candlestick
• if followed by a strong candle in either direction

Question 5

What does the engulfing candlestick look like?
What does this pattern tell you?
What type of pattern is it?
How to confirm this pattern?

Answer 5

• 2 candles, 2nd candle larger than the first and completely engulfs the body of the 1st
• tells you that the opposition is strongly taking over
• trend reversal signal
• high volume on 2nd candle, next candle going in the same direction

Question 6

What does the 3BC candlestick look like?
What does this pattern tell you?
What type of pattern is it?
How to confirm this pattern?

Answer 6

• 3 downward candles one after the other, each closing lower than the previous candle
• sellers are pushing buyers out of the market
• trend continuation
• increased volume, break of support levels

Question 7

What does the 3WS candlestick look like?
What does this pattern tell you?
What type of pattern is it?
How to confirm this pattern?

Answer 7

• 3 upward candles one after the other, each closing higher than the previous candle
• buyers are pushing sellers out of the market
• trend continuation
• increased volume, break of resistance levels

Question 8

What does the 3IU candlestick look like?
What does this pattern tell you?
What type of pattern is it?
How to confirm this pattern?

Answer 8

• 1st candle is bearish, 2nd candle is bullish and completely engulfs the 1st candle. 3rd candle is a strong impulse bullish candle
• sellers have been pushed out and buyers are now dominating
• bullish reversal pattern
• the 3rd candle is your confirmation

Question 9

What does the evening star candlestick pattern look like?
What does this pattern tell you?
What type of pattern is this?

Answer 9

• 1st is a strong bullish candle, 2nd candle resembles a Doji, 3rd candle is a strong bearish candle
• sellers have taken over and have the majority
• trend reversal