Candlesticks - Quick Summary

[BadThad]

Saw this post by AUfan and thought it'd make a good thread for the TA section. While we already have a nice detailed summary, this one is good for quick reference:

Simple Patterns
There are multiple forms of candlestick chart patterns, with the simplest depicted at right. Here is a quick overview of their names:



1...White candlestick - signals uptrend movement (those occur in different lengths; the longer the body, the more significant the price increase)

2...Black candlestick - signals downtrend movement (those occur in different lengths; the longer the body, the more significant the price decrease)

3...Long lower shadow - bullish signal (the lower wick must be at least the body's size; the longer the lower wick, the more reliable the signal)

4...Long upper shadow - bearish signal (the upper wick must be at least the body's size; the longer the upper wick, the more reliable the signal)

5...Hammer - a bullish pattern during a downtrend (long lower wick and small or no body); Shaven head - a bullish pattern during a downtrend & a bearish pattern during an uptrend (no upper wick); Hanging man - bearish pattern during an uptrend (long lower wick, small or no body; wick has the multiple length of the body.

6...Inverted hammer - signals bottom reversal, however confirmation must be obtained from next trade (may be either a white or black body); Shaven bottom - signaling bottom reversal, however confirmation must be obtained from next trade (no lower wick); Shooting star - a bearish pattern during an uptrend (small body, long upper wick, small or no lower wick)

7...Spinning top white - neutral pattern, meaningful in combination with other candlestick patterns

8...Spinning top black - neutral pattern, meaningful in combination with other candlestick patterns

9...Doji - neutral pattern, meaningful in combination with other candlestick patterns

10...Long legged doji - signals a top reversal

11...Dragonfly doji - signals trend reversal (no upper wick, long lower wick)

12...Gravestone doji - signals trend reversal (no lower wick, long upper wick)