This Japanese candlestick cheat sheet is a handy reference for identifying single, dual, and triple candlestick patterns. It summarizes key candlestick formations, their characteristics, and what they signal about market trends. Use this as a quick guide while analyzing charts to enhance your trading decisions.
Candlestick Anatomy
Body: Represents the range between the opening and closing prices.
White/Green (Bullish): Closing price is higher than the opening price.
Black/Red (Bearish): Closing price is lower than the opening price.
Wicks (Shadows): Show the highest and lowest price points reached during the period.
Single Candlestick Patterns
Candlestick Name: Spinning Top
Bullish or Bearish? Neutral
Description: Small body with long wicks; reflects indecision.
Potential Signal: Indecision, trend continuation or reversal.
Candlestick Name: Doji
Bullish or Bearish? Neutral
Description: Open and close prices are nearly identical; indicates indecision.
Potential Signal: Indecision, possible reversal.
Candlestick Name: White Marubozu
Bullish or Bearish? Bullish
Description: Long body with no shadows; strong buying pressure.
Potential Signal: Continuation of uptrend or bullish reversal.
Candlestick Name: Black Marubozu
Bullish or Bearish? Bearish
Description: Long body with no shadows; strong selling pressure.
Potential Signal: Continuation of downtrend or bearish reversal.
Candlestick Name: Hammer
Bullish or Bearish? Bullish
Description: Small body at top with long lower wick; appears in a downtrend.
Potential Signal: Potential bullish reversal.
Candlestick Name: Hanging Man
Bullish or Bearish? Bearish
Description: Small body at top with long lower wick; appears in an uptrend.
Potential Signal: Potential bearish reversal.
Candlestick Name: Inverted Hammer
Bullish or Bearish? Bullish
Description: Small body at bottom with long upper wick; appears in a downtrend.
Potential Signal: Potential bullish reversal.
Candlestick Name: Shooting Star
Bullish or Bearish? Bearish
Description: Small body at bottom with long upper wick; appears in an uptrend.
Potential Signal: Potential bearish reversal.
Dual Candlestick Patterns
Candlestick Name: Bullish Engulfing
Bullish or Bearish? Bullish
Description: A bearish candle followed by a larger bullish candle that engulfs it.
Potential Signal: Potential bullish reversal.
Candlestick Name: Bearish Engulfing
Bullish or Bearish? Bearish
Description: A bullish candle followed by a larger bearish candle that engulfs it.
Potential Signal: Potential bearish reversal.
Candlestick Name: Tweezer Tops
Bullish or Bearish? Bearish
Candlestick Name: Two consecutive candles with matching or nearly matching highs.
Potential Signal: Potential bearish reversal.
Candlestick Name: Tweezer Bottoms
Bullish or Bearish? Bullish
Candlestick Name: Two consecutive candles with matching or nearly matching lows.
Potential Signal: Potential bullish reversal.
Triple Candlestick Patterns
Candlestick Name: Morning Star
Bullish or Bearish? Bullish
Description: Long bearish candle, small real body (any color), followed by a long bullish candle.
Potential Signal: Potential bullish reversal.
Candlestick Name: Evening Star
Bullish or Bearish? Bearish
Description: Long bullish candle, small real body (any color), followed by a long bearish candle.
Potential Signal: Potential bearish reversal.
Candlestick Name: Three White Soldiers
Bullish or Bearish? Bullish
Description: Three consecutive long bullish candles with small wicks.
Potential Signal: Continuation of uptrend.
Candlestick Name: Three Black Crows
Bullish or Bearish? Bearish
Description: Three consecutive long bearish candles with small wicks.
Potential Signal: Continuation of downtrend.
Candlestick Name: Three Inside Up
Bullish or Bearish? Bullish
Description: Long bearish candle, smaller bullish candle retracing at least 50%, followed by a bullish candle closing above the first.
Potential Signal: Potential bullish reversal.
Candlestick Name: Three Inside Down
Bullish or Bearish? Bearish
Description: Long bullish candle, smaller bearish candle retracing at least 50%, followed by a bearish candle closing below the first.
Potential Signal: Potential bearish reversal.
How to Use This Cheat Sheet
Bookmark It: Keep this cheat sheet accessible for quick reference during analysis.
Practice Recognition: Familiarize yourself with the patterns to identify them in real-time charts.
Combine with Other Indicators: Use these candlestick patterns alongside technical indicators for more robust trading decisions.
This guide equips you with the foundational knowledge to recognize and interpret Japanese candlestick patterns effectively, helping you make confident and informed trading choices.