Candlestick reversals
Doji variants, engulfing patterns, stars, hammers, and related formations.
Candlestick reversals
| Concept | Explanation | |---|---| | Doji | Open and close are nearly equal, reflecting indecision. | | Hammer | Small body and long lower shadow after a decline. | | Hanging man | Hammer-shaped candle after an advance. | | Shooting star | Small body and long upper shadow after an advance. | | Bullish engulfing | Bullish body covers the prior bearish body. | | Bearish engulfing | Bearish body covers the prior bullish body. | | Morning star | Three-candle bullish reversal sequence. | | Evening star | Three-candle bearish reversal sequence. | | Three white soldiers / black crows | Three strong directional candles that may mark reversal or continuation. |
Candlestick interpretation depends on location, prior trend, volume, and the next candles. A shape without context has little analytical value.