When we see an Abandoned Baby Bearish pattern, it’s like watching a story.
First, we see a big green candle that shows people really want to buy.
Then there’s a tiny candle in the middle where nobody can decide what to do.
Finally, a big red candle shows everyone started selling.
It means the price is probably going down now.
For the Abandoned Baby Bullish pattern, first we see a big red candle where everyone is selling.
Then a tiny middle candle where people are confused.
Then a big green candle where everyone starts buying again.
This means the price will probably go up now.
The Dark Cloud Cover is when we see a nice big green candle one day, but the next day starts even higher and then falls down a lot.
It’s like someone jumped up excited but then tripped and fell.
This usually means the price might start going down.
The Bearish Star starts with a big green candle where buyers are happy.
Then the next day there’s a tiny candle up higher where nobody knows what to do.
This means the buyers might be getting tired.
The Bullish Star starts with a big red candle where sellers are happy.
Then the next day there’s a tiny candle down lower where nobody knows what to do.
This means the sellers might be getting tired.
In the Downside Tasuki Gap, we first see a big red candle when people are selling.
Then another red candle even lower.
Then a green candle tries to come back up but can’t go all the way.
This means prices will probably keep going down.
The Upside Tasuki Gap pattern is first a big green candle, then another green candle even higher, then a red candle that goes down into the gap but doesn’t fill it.
This means prices will probably keep going up.
The Evening Star pattern is like a three-act play.
First act: a big green candle shows buyers are strong.
Second act: a tiny candle up higher shows people getting uncertain.
Third act: a big red candle shows sellers taking control.
The story ends with prices going down.
The Falling Three Methods pattern looks like a staircase.
First a big red step down, then three tiny green steps that don’t go up much, then another big red step down.
It means the prices are still going down, they just took a little break.
The Falling Window is super simple.
It’s just two candles with a gap between them, like someone forgot to draw part of the picture.
This gap during a downtrend means prices will probably keep falling.
A Gravestone candle looks like an upside-down “T”.
The price opens at the bottom, goes way up during the day, but then falls all the way back down by closing time.
It’s like jumping up high but then falling flat on your face.
This is usually bad news for buyers.
The buyers couldn’t take over the sellers.
A Dragonfly candle looks like a “T”.
The price opens at the top, goes way down during the day, but then comes all the way back up by closing time.
It’s like falling down but bouncing right back up.
This is usually good news for buyers.
They were just as strong as the sellers.
The Kicking Bearish pattern is like someone doing a big kick downward.
First a solid green candle, then a big jump down to a solid red candle.
It means sellers suddenly came in really strong.
The Kicking Bullish pattern is like someone doing a big kick upward.
First a solid red candle, then a big jump up to a solid green candle.
It means buyers suddenly came in really strong.
A Long Lower Shadow candle is like someone reaching down to touch their toes but then standing back up.
The price went way down during the day but came back up by the end.
This usually means buyers are strong.
A Long Upper Shadow candle is like someone reaching up high but then dropping their arms.
The price went way up during the day but came back down by the end.
This usually means sellers are strong.
A Black Marubozu is a solid red candle with no shadows on top or bottom.
It’s like a solid brick wall going down.
Sellers were in control the whole day, which is very bearish.
A White Marubozu is a solid green candle with no shadows.
It’s like a solid brick wall going up.
Buyers were in control the whole day, which is very bullish.
The Morning Star Bullish pattern is also a three-act play.
First act: a big red candle shows sellers are strong.
Second act: a tiny candle down lower shows people getting uncertain.
Third act: a big green candle shows buyers taking control.
The story ends with prices going up.
The Piercing pattern shows a big red candle, then a green candle that starts even lower but climbs up past the middle of the red candle.
It’s like falling down but then getting halfway back up.
This shows buyers are getting stronger.
The Rising Three Methods pattern also looks like a staircase.
First a big green step up, then three tiny red steps that don’t go down much, then another big green step up.
It means the prices are still going up, they just took a little break.
The Three Black Crows pattern shows three big red candles in a row, each starting inside the previous one.
It’s like three big steps down.
This means sellers are really taking control.
The Three White Soldiers pattern shows three big green candles in a row, each starting inside the previous one.
It’s like three big steps up.
This means buyers are really taking control.
The Tri Star patterns show three tiny candles in a row where the opening and closing prices are the same.
It’s like three people standing still, thinking about which way to go.
This usually means the price trend is about to change.
The Tweezer Bottom pattern shows a red candle followed by a green candle with the same low point.
It’s like touching the floor twice and then bouncing up.
This might mean prices will start rising.
The Tweezer Top pattern shows a green candle followed by a red candle with the same high point.
It’s like touching the ceiling twice and then falling down.
This might mean prices will start dropping.
A Doji is a funny looking candle where the opening price and closing price are the same.
It looks like a plus sign or a cross.
It means buyers and sellers are playing tug-of-war and nobody is winning.
The Bearish Engulfing pattern is like a big bully.
First we see a small candle, then a big red candle comes and completely covers it up.
This means the sellers are taking over and prices might go down.
The Bullish Engulfing pattern is like a big friendly giant.
First we see a small candle, then a big green candle comes and completely covers it up.
This means the buyers are taking over and prices might go up.
The Hammer looks just like a hammer!
It has a small head at the top and a long handle below.
When you see this during falling prices, it means buyers might be coming back.
It’s like hitting the bottom and bouncing.
The Hanging Man looks exactly like the Hammer but shows up when prices have been rising.
It’s a warning sign that says the upward move might be ending.
The Shooting Star has a small body at the bottom with a long line going up.
It looks like a shooting star with a tail.
When you see this after prices have been going up, it means the buyers tried to push prices higher but failed.
This might mean prices will start falling.
Spinning Tops have small bodies with long shadows on both sides.
They look like toy tops.
They show nobody knows which way to go, like being lost.
The Bearish Harami pattern is like a mommy and baby. That’s why it is also known as the pregnant pattern.
First we see a big green candle (the mommy), then a small red candle inside it (the baby).
It means the buyers are getting tired and prices might start going down.
The Bullish Harami pattern is the opposite.
A big red mommy candle with a small green baby candle inside.
It means the sellers are getting tired and prices might start going up.
The Harami Cross patterns are the same but the baby candle is super tiny with the same opening and closing price.
It’s like the baby is not sure which way to go.
The Inverted Hammer looks like an upside-down hammer.
When you see it during falling prices, it means buyers tried to push prices up but couldn’t hold it completely.
Still, it might mean prices will start going up soon.