Technical Analysis A to Z

How To Read Candlestick Charts Candlestick Analysis was developed in Japan centuries ago to help understand price movement in the rice market.  In the 1990’s a man by the name of Steve Nison returned from the East and upon his return he began to teach what was known as Japanese Candlestick Analysis.  Since that time [...]

Shooting Star Candlestick Pattern Physical Description: The Shooting Star Candlestick is a one candle pattern and is a potential Top Reversal Indicator that can only occur during a previously established uptrend in price. This pattern gets it’s name due to the long upper shadow, resembling the tail of a shooting star, above the relatively small [...]

Piercing Pattern Physical Description: The Piercing Candlestick Pattern is a bullish two candle formation that occurs on a chart only in presence of an established downtrend. The first candle of this bottom reversal pattern has a black real body and the second candle has a white real body that “pierces” into and past the midpoint [...]

Morning Star Candlestick Pattern Physical Description: The Morning Star Candlestick formation is a very significant three candle bottom reversal pattern that occurs only during an established downtrend. The first candle is black and is followed by the second candle which gaps lower at the open of the trading session. The third candle is white and [...]

Hanging Man Candlestick Pattern Physical Description: The Hanging Man Candlestick Pattern gets it’s name from appearing like a hanging man and can only occur after after an established uptrend. This chart formation is a top reversal indicator that appears as either a white or black candle with no upper shadow and a long lower shadow. [...]

Hammer Candlestick Pattern Physical Description: The Hammer Candlestick is a bullish reversal formation that occurs after an established downtrend. This candle gets it’s name from it’s hammer like appearance and indicates that the market is “hammering” out a base or bottom. The candle has a small real body which can either be black or white [...]

Gravestone Doji Candlestick Physical Description: The Gravestone Doji is a top reversal indicator that forms in the context of an uptrend on a candlestick chart. The open, low and close all appear at the bottom of the candle giving the ominous appearance of a gravestone. The presence of the long upper shadow indicates that the [...]

Evening Star Candlestick Pattern Physical Description: The Evening Star is a three candle top reversal pattern. This bearish chart formation occurs during a price uptrend and the first candle in the series is a long white candle. The second candle gaps higher and forms what is known as a spinning top type of candlestick. The [...]

Dragonfly Doji Candlestick Physical Description: The Dragonfly Doji is a bottom reversal indicator that can only occur during a downtrend. This one candle formation indicates the open, low, and close are all at or near the high of the trading day. The presence of a long lower shadow indicates that price moved lower after the [...]

Doji  Candlestick Physical Description: The Doji is characterized simply as a candlestick where the opening and closing prices are nearly identical. These candles can form with any combination of long or short upper or lower shadows or wicks. Although Doji can take on many different forms because of the different shadow appearances the key identification [...]