Did you know that the stock market moves in waves, up and down? Understanding how and why it does this can help you make more informed decisions when trading. One of the most popular ways to analyze stock movements is to use candlestick chart patterns. Depending on the shape and height of the candlesticks, we can get an idea of the overall trends of the stock. To help you understand how to read and interpret candlestick patterns, we’ve compiled this cheat sheet.
Candlesticks Cheat Sheet
This chart outlines the most popular candlestick patterns and what they indicate. You’ll notice that some patterns have a green background, while others have a red background. The green indicates that the stock is on the rise and the red means the stock is falling.
Candlestick Patterns Cheat Sheet
On the chart above, you’ll see that there are 7 major candlestick pattern types, each with its own significance. A “Doji” star pattern indicates a potential reversal in the market. A “Hammer” pattern suggests the trend is about to reverse up and a “Shooting Star” pattern indicates that the trend might soon reverse down. The “Engulfing” pattern is a strong signal that the trend has reversed.
10 Best Candlestick PDF Guide
This chart shows 10 different candlestick patterns and what they might potentially mean. For example, a “Bullish Harami” pattern implies that the buying pressure is increasing and the stock might be about to rise. A “Bearish Abandoned Baby” pattern suggests that the selling pressure is increasing and the stock might be about to fall.
Candlestick patterns cheat sheet
This chart outlines general signals for interpreting different candlestick patterns. It’s helpful to note that long bodies mean a higher probability of a trend reversal and short bodies mean a lower probability of a reversal.
Candlestick Pattern Cheat Sheet Pdf Download
