White Candlestick

White Candles are bullish, they signify that the closing is higher than the opening for that period. A candlestick will show the securities open, high, low, and close for the user-specified time. The high and low will be shown by the two wicks on each end of the body. The body comprises the distance between the period's open and closed prices. Thus, candlestick marks show the range of prices that the security has reported through a single period.

Black Candlestick

Black Candles are bearish, and they signify that the closing is lower than the opening for that period. This candlestick will show the securities open, high, low, and close for the user-specified time. The high and low will be shown by the two wicks on each end of the body. The body comprises the distance between the period's open and closed prices. Thus, candlestick marks show the range of prices that the security has reported through a single period.

Doji

1. Common Doji

A doji candlestick forms when a security open and close are virtually equal for the given period. This candle represents indecision on the side of both buyers and sellers. A doji represents a supply/demand equilibrium. In a doji, the charted securities opening price is equal to its closing price. A doji is not significant, if the market is not clearly trending as non-trending markets are inherently indicative of indecision. If the doji forms in an uptrend or downtrend, this is normally seen as significant, as it is a signal that the buyers are losing conviction when formed in an uptrend and a signal that sellers are losing conviction if seen in a downtrend.

2. Long-legged Doji

The long-legged doji is a candlestick that consists of long upper and lower shadows and has approximately the same opening and closing price. The candlestick signals indecision about the future direction of the underlying security. It is used by some traders to warn that indecision is entering the market after a strong advance. It may warn that a strong downtrend may be experiencing indecision before making a move to the upside. Long-legged doji may mark the start of a consolidation period, where the price forms for one or more long-legged Doji before moving into a tighter pattern or breaks out to form a new trend.

3. Gravestone Doji

A Gravestone Doji is a bearish reversal candlestick pattern that is formed when the open, low, and closing prices are all near each other with a long upper shadow. The long upper shadow suggests that the bullish advance at the beginning of the session was overcome by bears by the end of the session, which often comes just before a longer-term bearish downtrend. A gravestone doji pattern implies that a bearish reversal is coming. And this pattern can be used as a sign to take profits on a bullish position or enter a bearish trade.

4. Dragonfly Doji

Dragonfly Doji is a candlestick pattern that acts as an indication of investor indecision and a possible trend reversal. It is relatively easy to spot in a candlestick chart due to its unique "T" shape. In the case of a dragonfly doji, the opening, closing, and daily high price are all approximately the same. Such a pattern can only occur when the market trades down and then reverse but does not move above the opening price. The appearance of a dragonfly doji after a price advance warns of a potential price decline. A move lower on the next candle provides confirmation. A dragonfly doji after a price decline warns the price may rise. If the next candle rises that provides confirmation.

5. The Bullish Engulfing Pattern

A bullish engulfing pattern is a candlestick chart pattern that forms when a small black candlestick is followed the next day by a large white candlestick, the body of which completely overlaps or engulfs the body of the previous day's candlestick. It is formed at the end of a downtrend. This complete engulfing of the previous day's body represents overwhelming buying pressure dissipating the selling pressure. This pattern indicates that bulls have taken control of the market from the bears. For further confirmation the next candle needs to close higher than the bullish engulfing pattern, then the next leg of the uptrend will form. The stop loss for the long position, keep below the engulfing candle low.

6. Bearish Engulfing Pattern

A bearish engulfing pattern is a technical chart pattern that signals lower prices to come. The bearish engulfing pattern consists of two candlesticks, the first is white and the second black. The pattern consists of an up (white or green) candlestick followed by a large down (black or red) candlestick that "engulfs" the smaller up candle. The pattern can be important because it shows sellers have overtaken the buyers and are pushing the price more aggressively down than the buyers were able to push it up. For more confirmation, the coming day the index needs to trade and sustain below the bearish engulfing pattern. The stop loss for the short position, keep above the engulfing candle high.

7. Bullish Harami

A bullish harami is a basic candlestick chart pattern indicating that a bearish trend in an asset or market may be reversing. It consists of a bearish candle with a large body, followed by a bullish candle with a small body enclosed within the body of the prior candle. The bullish harami hints at a bullish reversal in the market. For confirmation, in the coming day the price should trade and sustain above the harami pattern high. The stop loss for the long position, keep below the long black candle low.

8. Bearish Harami

The Bearish Harami pattern is a reversal pattern appearing at the top of an uptrend. The pattern consists of a long white candle followed by a small black candle. The opening and closing prices of the second candle must be contained within the body of the first candle. For confirmation, in the coming day, the price should trade and sustain below the harami pattern low. The stop loss for the short position, keep above the long white candle high.

9. Hanging Man

The hanging man and hammer patterns are trend reversal patterns that consist of the same type of candlestick. Both are single candlestick patterns in which the candlestick consists of a real body that is located at the top of the candlestick with little or no upper shadow and a relatively long lower shadow, which should be at least twice the length of the real body. A hanging man is a bearish reversal candlestick pattern that occurs after an uptrend. When a hanging man forms in an uptrend it indicates that buyers have lost their strength. For more confirmation, the next candle needs to close under the body low, preferably at or below the tail.

10. Hammer

A hammer occurs after a downtrend of a stock or index price, suggesting the market is attempting to determine a bottom. This pattern forms a hammer-shaped candlestick, in which the lower shadow is at least twice the size of the real body. Hammers are most effective when they have formed after three or more declining candles. For confirmation, the next candle should close above the closing price of the hammer candle. For those taking new long positions, a stop loss can be placed below the low of the hammer's shadow.

11. Morning Star

The Morning Star Pattern is viewed as a bullish reversal pattern, usually occurring at the bottom of a downtrend. The pattern consists of three candlesticks: Large bearish candle on the first day, small bullish or bearish candle on the second day and, long white candle on the third day. For those taking long positions, a stop loss can be placed below the second-day candle.

12. Evening Star

The Evening Star is the exact opposite of the morning star. The Evening Star Pattern is viewed as a bearish reversal pattern, usually occurring at the top of an uptrend. The pattern consists of three candlesticks. The first candle is a large white, second candle a small white or black and, the third one is a long black candle; and it must close below the middle of the first candle. For those taking short positions, a stop loss can be placed above the second-day candle.

13. Inverted Hammer

The Inverted Hammer candlestick formation occurs mainly at the bottom of downtrends and can act as a warning of a potential bullish reversal pattern. After a long downtrend, the formation of an Inverted Hammer is bullish because prices hesitated to move downward during the day. When the low and the open are the same, a bullish, green Inverted Hammer candlestick is formed and it is considered a stronger bullish sign. For those taking long positions, a stop loss can be placed below the Inverted Hammer low.

14. A Shooting Star

In technical analysis, a shooting star formation is viewed as a bearish reversal candlestick pattern that typically occurs at the top of uptrends. The Shooting Star looks the same as the Inverted hammer, but instead of being found in a downtrend it is found in an uptrend. The long upper shadow of the Shooting Star implies that the market is tested to find where resistance and supply were located. When the market found the area of resistance, bears began to push prices lower, ending the day near the opening price.

15. Piercing Line

The piercing line pattern consists of two candlesticks, which indicates a potential bullish reversal. This pattern involves two candlesticks with the second bullish candlestick opening lower than the preceding bearish candle. This is followed by buyers driving prices up to close above 50% of the body of the bearish candle. For those who are taking long positions, a stop loss can be placed below the white candle low.

16. Dark Cloud Cover

The Dark Cloud Cover pattern is a candlestick pattern that signals a potential reversal to the downside. It appears at the top of an uptrend and involves a large green (bullish) candle, followed by a red (bearish) candle that creates a new high before closing lower than the midway point of the previous green candle. For those taking short positions, a stop loss can be placed above the black candle high.

17. Three Inside Up Pattern

The three inside up pattern is a bullish reversal pattern composed of a large down candle, a smaller up candle contained within the prior candle, and then another up candle that closes above the close of the second candle. Three inside up pattern showing that the current down-trend has lost momentum and a move in the upside direction might be starting. For those taking long positions, a stop loss can be placed below the second candle low.

18. Three Inside Down Pattern

The three inside down pattern is a bearish reversal pattern composed of a large up candle, a smaller down candle contained within the prior candle, then another down candle that closes below the close of the second candle. Three inside down pattern showing that the current up trend has lost momentum and a move in the downside direction might be starting. For those taking short positions, a stop loss can be placed above the second candle high.

19. Three White Soldiers

The three white soldiers' pattern is a bullish candlestick formation on a trading chart that occurs at the bottom of a downtrend. The pattern consists of three candles, which are green in colour. Each must open and close progressively higher than the first. The candlesticks should have big bodies and very small (or no) wicks. Traders believe that this formation signals an upcoming price reversal because of the strong buying pressure.

20. Three Black Crows

Three black crows is a bearish candlestick pattern used to predict the reversal of a current uptrend. The black crow pattern consists of three consecutive long-bodied candlesticks that have opened within the real body of the previous candle and closed lower than the previous candle. The three black crows pattern occurs when bears overtake the bulls during three consecutive trading sessions. Traders believe that this formation signals an upcoming price reversal because of the strong selling pressure.

MACD - Moving Average Convergence Divergence

Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of security's price. The MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. The result of that calculation is the MACD line. A nine-day EMA of the MACD is called the signal line. MACD crossing above 0 is considered bullish, while crossing below 0 is bearish. When the MACD line crosses from below to above the signal line, the indicator is considered bullish. When the MACD line crosses from above to below the signal line, the indicator is considered bearish.

RSI - Relative Strength Index

Above 70, overbought area and below 30, oversold. Between 30-70 neutral zone. The Relative Strength Index is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between 0 and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. During strong trends, the RSI may remain overbought or oversold for extended periods.

Slow Stochastic

Above 80, overbought area and below 20, oversold. Between 20-80 neutral zone. The Slow Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. A sell signal is given when the oscillator is above the 80 levels and then crosses back below 80. Conversely, a buy signal is given when the oscillator is below 20 and then crossed back when above 20. A crossover signal occurs when the two lines cross in the overbought or oversold region.

Williams %R

Above -50 is bullish and above -20 is overbought. Below -50 negative and below -80 is oversold. Williams %R moves between 0 and -100, which makes -50 the midpoint. Readings above -20 for the 14-day Williams %R would indicate that the underlying security was trading near the top of its 14-day high-low range. Readings below -80 occur when a security is trading at the low end of its high-low range.

ROC - Price Rate of Change Indicator

Above 0 is bullish and above 20 is overbought. Below 0 negative and below -20 is oversold. The Price Rate of Change (ROC) is a momentum-based technical indicator that measures the percentage change in price between the current price and the price a certain number of periods ago. In general, prices are rising as long as the Rate-of-Change remains positive. Conversely, prices are falling when the Rate-of-Change is negative.

CCI - Commodity Channel Index

Above 0 is positive and above +100 is overbought, below 0 is negative and below -100 as oversold. The Commodity Channel Index (CCI) measures the current price level relative to an average price level over a given period of time. When the CCI moves above +100, a new, strong uptrend is beginning, signaling a buy. When the CCI moves below -100, a new, strong downtrend is beginning, signaling a sell.

MFI - Money Flow Index

Above 50 is positive and above 80 is overbought. Below 50 is negative and below 20 is oversold. The Money Flow Index (MFI) is a technical oscillator that uses price and volume data for identifying overbought or oversold signals in an asset. The oscillator moves between 0 and 100.

ADX - Average Directional Index

The average directional index (ADX) is a technical analysis indicator used to determine the strength of a trend. The trend is strong when ADX is above 25 and no trend is present when below 20. The price is moving up when +DI is above -DI and the price is moving down when -DI is above +DI.

Simple Moving Average (SMA)

A simple moving average (SMA) calculates the average of a selected range of prices, usually closing prices, by the number of periods in that range. If the SMA is moving up, the trend is up. If the SMA is moving down, the trend is down. Price crossing SMA is often used to trigger trading signals.

Exponential Moving Average (EMA)

The exponential moving average (EMA) is designed to improve on the idea of a simple moving average (SMA) by giving more weight to the most recent price data. Since new data carries greater weight, the EMA responds more quickly to price changes than the SMA. Use the EMA to determine trend direction and trade in that direction.

Parabolic SAR

The parabolic SAR is a technical indicator used to determine the price direction of an asset, as well as draw attention to when the price direction is changing. A dot is placed below the price when it is trending upward, and above the price when it is trending downward.

Bollinger Bands

A Bollinger Band is a technical analysis tool defined by a set of trend lines plotted two standard deviations (positively and negatively) away from a simple moving average (SMA) of a security's price. There are three lines that compose Bollinger Bands: a simple moving average (middle band) and an upper and lower band.