Reversal Candlestick Patterns
Candlesticks are used to identify trading patterns that help technical analysts in setting up trades.
The 7 High Probability Reversal Candlestick Patterns are listed below. During the trending market you should be watching out for these reversal candlestick patterns.
A single candlestick can sometimes provide powerful signals.
Bullish | Candles | Bearish |
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The Doji |
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The Engulfing Patterns |
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Piercing Line and Dark Cloud |
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The Haramis |
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Hammer & Shooting Star |
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Spinning Tops |
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Railway Track Patterns |
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The location in which these candlesticks are formed is critical. If you spot a bullish reversal candlestick during an uptrend then the probability of a price increase will be high.
The opposite is also true i.e if you see a bearish reversal candlestick during an downtrend then what is the probability that price will go UP? Quite low! (This is trendline trading strategy setup).
![Doji Candlestick](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjcnhw7Q8BytBgVXjVp75wrBtgMjXTnPnvd11UgKJtrLK8v5WWZ_tuas9q0_3jNMFNisHfidomX-zKJadRQLh4PWNJdJu_AVZ20FTq5ZPlY_Dn-4oig6OYPjtAVKPNEWRKZTDf9yhPkodel7iyAROdC42G0cb1DQjKftyWsCHXhzVpPrKAFOq5UdPhb/s1600-rw/Doji%20Candle.jpg)
Doji Candlestick
Doji is a very powerful candle shows a balance of supply and demand.
Read More![Hanging Man Candlestick](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgvzgRa7VdK3_6ZZQo4YCs6RC-ktXjTQK5iJ7_ucMnJ-78OsNV7_048oUps-qdpcTuYI7Q1Az79ZJCKX7hCnz19Fjkx-3R_FV4MpyNavkoM6gj7AxlIgGNuESuJ8zlJfQrM2Rqn1jx25UHuVNGv4kUou9Xukr8wgWfELUY5mn4_np5kf32OKm6igA/s1600-rw/hanging%20man%20candlesticks.jpg)
Hanging Man Candlestick
Hanging Man candle which gives a very strong signal of a trend reversal.
Read MoreInverted Hammer Candlestick
This candle implies a very strong signal of a trend reversal (to uptrend).
Read More![Moving Average Indicator](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhaVbvdJvvnQwHfyCfkho_H1vap39SpYyf7FNxpzFI4g7ABswfp3AUtwydKvRx9-GYbSYBd7M7lFqW8eSptcSI27W4b_iJG0RZfgbgzds2fADdjJJbzvtU5YwPQkyleVoF8BmCONNhq6hMl7EJaIk1TGa8UkKNa9JEKN1A7BoNCKQfPTYSD9BnN3g/s1600-rw/moving%20average%20indicator.jpg)
Moving Average Indicator
This indicator is used on charts for trend identification.
Read More