Pattern Index Bullish Patterns
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In an uptrend, a white candle is followed by a Doji that gaps above it completely. The next day is a black candle that gaps completely below the Doji.
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In an uptrend, a small white candle with low volume is followed by a much higher volume black candle that engulfs the body of the previous white candle.
Confirmation: Required (See Three Outside Down)
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In an uptrend, a long white candle with above average volume is followed by a black candle that gaps down, closing within the body of the first day. Volume for the black candle is lower than for the white candle.
Confirmation: Required (See Three Inside Down)
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This is an example of a breakdown pattern, similar to the Breakout one, that is included to show that not only traditional candlestick patterns can be searched for. It scans items that have been trading relatively flat for the previous 20 bars and then have an above-average-length black bar that closes near its low and whose low is lower than the lowest low of the previous 20 bars.
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This is a contrarian pattern described by Thomas Stridsman in his book 'Trading Systems and Money Management' that is shown by him to be very profitable. He also includes additional rules on position sizing and stop loss methods. The pattern has been modified from his version to include confirmation, i.e., the current bar must close down and also close lower than the previous day's close. The pattern basically looks for stocks that have been trending too long and so are ready for a pullback. The pattern Stridsman describes can be formulated as 'C>C1 AND C1>C2 AND C>C5 AND C5>C10', which we have modified to 'C1>C2 AND C2>C3 AND C1>C6 AND C6>C11 AND BC AND C<C1' for confirmation.
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In an uptrend, a long white candle is followed by a a black candle that opens above the high of the prior day and closes below the midpoint of that day.
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Dave Paxton Bearish Star Confirmation
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An
example of a user-defined scan from Dave Paxton of Y2Kseminars.com.
It's purpose is to confirm a Bearish (Evening) Star and looks for either of two sequences:
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In an uptrend, a long white candle is followed by a Doji that gaps up. This is followed by a black candle that opens below the Doji.
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In an uptrend, a long white candle is followed by a day that gaps above it. This is followed by a black candle that gaps below the day before it and closes below the close of the first day.
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In a downtrend, a long black candle is followed by three white candles that open and close successively higher, but not higher than the open of the first long black candle. The last day is a black candle that closes below the close of the first black candle.
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This
is a breakdown pattern described by Gary Smith of TheStreet.Com in Technical Analysis of Stocks & Commodities Magazine, October 2000.
It is included as an example of a non-traditional candlestick pattern.
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In an uptrend, a small body appears near the top of its daily range. The lower shadow should be at least twice as long as the body.
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After an uptrend, three similar black lines open and close successively lower. The second day opens near the close of the first and the third day opens near the close of the second.
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A black marubozu gaps under a white marubozu. The prior trend is not important.
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In an uptrend, a long white candle is followed by a long black candle that closes near the close of the previous day.
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After an uptrend, three similar black lines open and close successively lower.
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In an uptrend, a long white candle with above average volume is followed by a small black candle of lower volume that is engulfed by the previous day. The third day is also a black candle that closes lower than the first day, confirming the trend.
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In an uptrend, a small white candle with low volume is followed by a much higher volume black candle that engulfs the body of the previous white candle. This is followed by another black candle that closes below the close of the prior black candle.
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In an uptrend, a long white candle is followed by a black candle that gaps up. This is followed by another black candle that engulfs the previous, but still closes above the close of the first white candle.
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