Candlestick Chart: “king of the jungle”

Candlestick Chart:
“king of the jungle”
Welcome to your quick fire guide of Candlestick charts as part of your introduction to
The Trader Commands.
You'll find in the following pages, 48 of the most common candlestick patterns and you
can check whether these are Bullish Reversals, Bullish Continuation, Bearish Reversals
or Bearish Continuation.
First some things to remember:
Candles display a supply / demand situation by showing
who is winning the battle between bulls and bears.
Bar charts do not.
Candles show the trend of the market, but add
another dimension by revealing the force
behind the move.
High
High
Close
Open
Open
Close
Bar charts can take weeks to transmit a
reversal signal.
Candles can show reversals in 1 to 3 sessions.
One candle – doji.
Two sessions – bearish engulfing sessions.
Three sessions – evening star formation.
Low
Low
Therefore you can get more timely trades.
Bull Bear Club Training
Copyright; The Bull Bear Club Ltd (“BBC”) 2006 – All Rights Reserved. The Bull Bear Club Ltd does not intend to give
investment advice. The Bull Bear Club Ltd takes no responsibility for the accuracy, nor liability for any risk position
taken by any party in any live market based on information given in any training course material.
Example of a Candlestick Chart: the “king of the jungle”
Candle Patterns
** The number opposite each pattern represents the number of candles that are used to define
that particular pattern
Bullish Reversals
Long white body
Hammer
Inverted Hammer
Belt Hold
Engulfing Pattern
Harami
Harami Cross
Piercing Line
Doji Star
Meeting lines
Three White Soldiers
Morning Star
Morning Doji Star
1
1
1
1
2
2
2
2
2
2
3
3
3
Bullish Continuation
Separating Lines
Rising three Methods
Upside Tasuki Gap
Side by Side White Lines
Three Line Strike
Upside Gap Three Methods
On Neck Line
In Neck Line
2
5
3
3
4
3
2
2
Abandoned Baby
Tri-Star
Breakaway
Three Inside-Up
Three Outside Up
Kicking
Unique Rivers Bottom
Three Stars in the South
Concealing Swallow
Stick Sandwich
Homing Pigeon
Ladder Bottom
Matching Low
3
3
5
3
3
2
3
3
4
3
2
5
2
Bearish Reversals
Long Black Body
Hanging Man
Shooting Star
Belt Hold
Engulfing Pattern
Harami
Harami Cross
Dark Cloud Cover
Doji Star
Meeting Lines
Three Black Crows
Evening Star
Evening Doji Star
1
1
1
1
2
2
2
2
2
2
3
3
3
Bearish Continuation
Separating Lines
2
Falling three Methods
5
Downside Tasuki Gap
3
Side by Side White Lines 3
Three Line Strike
4
Downside Gap Three Methods 3
On Neck Line
2
In Neck Line
2
Abandoned baby
Tri-Star
Breakaway
Three Inside Down
Three Outside Down
Kicking
Latter Top
Matching High
Upside Gap Two Crows
Identical Three Crows
Deliberation
Advance Block
Two Crows
3
3
5
3
3
2
5
2
3
3
3
3
3
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involved. Prices can move rapidly against you and resulting losses may be more than your
original stake or deposit. Margin amounts vary between spread betting companies and the
type of markets spread bet. Levels and bases of, and reliefs from taxation are subject
to change.
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