Candlesticks Explained

Analyzing Trading Technical Candlesticks Patterns Signals - This candles tutorial will show you how to analyze the various candles patterns used in trading the market.

Learn Basic of Analyzing Technical Candlesticks Pattern Setups

Doji Candles Explained

Doji is a candlesticks pattern setup with same opening and closing price. There are various types of doji candlesticks pattern setup that form on charts.

following examples explain various setups of the doji candle:

Long-legged doji candlesticks pattern has long upper and lower shadows with the opening & closing price at the mid. When Long-legged doji pops up on chart it shows indecision between the traders, the buyers and sellers.

Below is example screen shot image of the Long Legged Doji candlesticks pattern setup

Doji Candlestick Pattern - Doji Candles Discussed

Doji Candlestick Pattern - Doji Candles Discussed

Marubozu Candles Explained

Marubozu candles pattern are long candles that have no upper or lower shadows, Like depicted & illustrated below.

Marubozu Candles - Marubozu Candlesticks Discussed

Marubozu candles pattern setup are continuing candle setups that show price is going to continue in same direction as that of the marubozu candlestick. The marubozu candles pattern setup can be white/blue or black/red depending on direction of the trend.

Spinning Top Candles Candle-sticks Described

Spinning tops candles pattern setup have a small body with long upper & lower shadows. The spinning top candlestick patterns are referred to by this term because these candles formations are similar to spinning top on a matchstick.

The upper and lower shadows of the spinning top candlesticks pattern setup are longer than the body. The examples illustrated and explained below shows the spinning top candlesticks pattern setup. You can look for the pattern setup in your Meta Trader 4 Software charts. The examples illustrated and explained below shows a screenshot to help traders when it comes to learning and understanding these candles pattern setup.

How Do I Analyze Candle Charts - Spinning Tops Candlesticks Discussed

Color of the spinning tops candle-stick candlesticks pattern setup is not very important, this pattern explain the indecision between buyers & sellers in the market. When these setups appear at the top of a trend or at the bottom of trend it may trading signal that the trend is coming to an end and it may soon reverse and begin going the other direction. However, it is better to wait for confirmation signals that direction of a market trend has reversed before taking the signal from the candles pattern setup formation.

Hammer Candle Pattern and Hanging Man Candles Explained

Hammer Candle Pattern & Hanging Man Candle Pattern candlesticks look alike but hammer is bullish reversal candlesticks pattern setup and hanging man is a bearish reversaltrading ++candlescandlesticks pattern setup.

Hammer Candle Pattern and Hanging Man Candle Pattern - Candles Discussed

Hammer Candle-sticks Described

Hammer candlesticks pattern setup is a potentially bullish candle pattern setup which forms during a downwards trend. It's named so because the market is hammering a bottom.

Hanging Man Candle-sticks Described

This hanging man candlesticks pattern setup is a potentially bearish reversal signal which occurs during a upwards trend. It's named so because it looks like a man hanging on a noose up high.

Hanging Man Candle Pattern

Inverted Hammer Candle-sticks Described

This is a bullish reversal candlesticks pattern setup. It forms at the bottom of a market trend.

Inverted hammer candlesticks pattern forms at the bottom of a down trend and indicates possibility of reversal of the downward trend.

Inverted Hammer Candle Pattern - Candles Discussed

Shooting Star Candle-sticks Described

Shooting Star is a bearish reversal candlesticks pattern setup. It forms at the top of a market trend.

Shooting Star candlesticks pattern setup form at the top of an up trend in the market where the open price is same as the low & price then rallied up but was forced back downward to close near the open.

Shooting Star Candle-stick - Candles Discussed

Piercing Line Candle-sticks Described

Piercing line candle pattern setup is a long black body followed by a long white body candlestick.

The white body pierces the mid-point of previous black body.

This Piercing Line candles pattern setup is a bullish reversal candle-sticks pattern setup that forms at the bottom of a market downward trend. It shows that the market opens lower and closes above the midpoint of the black body.

This Piercing Line candles pattern setup highlights that the momentum of the down trend is reducing & the market trend is likely to reverse & move in an upwards direction.

This Piercing Line candles pattern setup is shown referred to as a piercing line signifying the market is piercing the bottom illustrating a market floor for the price downward trend.

Piercing Line Candle-stick Pattern - Candles Discussed

Dark Cloud Cover Candles Explained

Opposite of piercing candlestick xauusd candle.

This candlestick stick is a long white body followed by a long black body.

Black body pierces the midpoint of the prior white body.

This is a bearish reversal pattern which forms at the top of an upwards trend.

Dark Cloud candlesticks pattern setup highlights that the market opens higher and closes below the midpoint of the white body.

Dark Cloud candles pattern setup highlights that the momentum of the up trend is reducing & the market trend is likely to reverse & move in a down ward gold trading direction.

Dark Cloud candles pattern setup is shown referred to as a cloud cover signifying the cloud as a ceiling for the price upward trend.

Dark Cloud Cover Candlestick Pattern

Morning Star Candles Explained

Morning Star Candle Pattern - Candles Discussed

Evening Star Candles Explained

Opposite of morning star candlestick pattern

Evening Star Candle Pattern - Candles Discussed

Engulfing Candles Pattern Setups

Engulfing is a reversal candles pattern that can be bearish or bullish depending upon whether it shows up at the end of a market downward trend or at the end of a market upward trend.

Bullish and Bearish Engulfing Candlesticks Pattern Setups - Candles Discussed

How to Analyze Candlestick Pattern? - Candles Pattern Setups Discussed