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 |
|---|---|---|
|
The Doji |
|
|
The Engulfing Patterns |
|
|
Piercing Line and Dark Cloud |
|
|
The Haramis |
|
|
Hammer & Shooting Star |
|
|
Spinning Tops |
|
|
Railway Track Patterns |
|
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).