My favourite candlestick patterns

» Posted by on Mar 8, 2015 in My Blog | 0 comments

My favourite candlestick patterns

There are many different Japanese candlestick patterns out there. Hundreds of them. It is a bit overwhelming and intimidating because you start to think maybe you are missing out on trades because you don’t know enough candlestick patterns. I used to think that but then I realized I don’t need to learn all of them, I just need to learn the ones that suit my trading style. I am not really concerned about continuation patterns, so I don’t look for those patterns. I like to trade the markets when they have turned from a top or a bottom. So I learned the reversal patterns.

I have 14 main reversal candlestick patterns that I memorized and that I look for daily in my trading. They are:

  1. Bearish Harami Cross
  2. Bullish Harami Cross
  3. Bearish Engulfing
  4. Bullish Engulfing
  5. Piercing Line (a bullish pattern)
  6. Dark Cloud Cover (a bearish pattern)
  7. Morning Star (a bullish pattern)
  8. Evening Star (a bearish pattern)
  9. Shooting Star (a bearish pattern)
  10. Hammer (a bullish pattern)
  11. Long Lower Shadow (a bullish pattern)
  12. Long Upper Shadow (a bearish pattern)
  13. Inside Down (a bearish pattern)
  14. Inside Up (a bullish pattern)

I get more into these patterns in my ebook, which you can download here.

When I see one of these patterns I look more closely at what is going on in the market and if my analysis agrees with the pattern I will initiate a trade.

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