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Questions and Answers List

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QuestionAnswer
DOJIA DOJI tells us that during the trading day the stock moved higher and lower and neither the buyers nor sellers were more prominent.
The Shooting StarIt opens and trades higher, creating the tall wick on top of the candle, but then the sellers take over forcing the price back down to close near the opening price. This is an early indication that the advance has lost its momentum.
What is the Evening Star?When the dark candle forms indicating a change in direction, then this DOJI becomes what is called an Evening Star. The formation shown by the chart above is used by traders as an early indication that the uptrend is about to reverse.
The HammerThe Hammer is normally found at the bottom and forms when a stock has been in a downtrend and finally reached a support level.
What is the Hanging Man?The Hanging Man is a bearish candlestick pattern that forms at the end of an uptrend. An early indication that the bulls (buyers) are losing control and demand for the asset is waning.
The Spinning TopThis candle is often regarded as neutral and used to signal indecision about the future direction of the stock’s price.
The Tri Star?The above chart illustrates a bearish tri-star pattern at the top of the uptrend and is used to mark the beginning of a shift in momentum.
Bearish HaramiSuch a pattern is an indication that the previous upward trend is coming to an end.
Bullish HaramiGiving a sign of a reversal of the downward trend.
Bullish/Bearish Harami CrossThis formation indicates further advance may be unlikely.
Bullish EngulfingWhen this pattern forms after a downward trend, a trader sees this as a signal that the decline is ending and a reversal is about to take place.
Bearish EngulfingWhen you see the Bearish Engulfing pattern form after a stock has been trending up, then there is a pretty clear signal that change in direction is in the air.
Rising Three MethodsThis indicates the advance will likely continue. Another way to look at this formation is that the stock is taking a rest, or a breather, so to speak. Just a slight pullback before it marches higher.
Falling Three MethodsIt’s a bearish candlestick pattern that tells us the current downtrend will probably continue.
Bearish Abandoned BabyTells us a reversal in the current uptrend is on its way.
Bullish Abandoned BabyIt appears after a decline, telling us the buyers and sellers are virtually equal.
Three Black CrowsSelling is heavy and further decline is expected.
Three White SoldiersThe stock has been in a downtrend and then appears to have found support.
Dragonfly Dojiis a bullish candlestick pattern which is formed when the open high and close are the same or about the same price. When it occurs in a downtrend, it is interpreted as a bullish reversal signal.
Gravestone DojiFor this pattern to be reliable, it must occur near a resistance level.
Morning StarThe morning star pattern is considered as a bullish reversal pattern, it often occurs at the bottom of a downtrend and it consists of three candlesticks
Evening StarThe evening star pattern is considered as a bearish reversal pattern that usually occurs at the top of an uptrend.
Tweezer BottomThe tweezers bottom happens during a downtrend, when sellers push the market lower, the first bearish candle which indicates that buyers are coming to reverse the market direction.
Tweezer TopThe tweezers top formation is considered as a bearish reversal pattern seen at the top of an uptrend, and the tweezers bottom formation is interpreted as a bullish reversal pattern seen at the bottom of a downtrend.