Japanese Candlestick Analysis
■ (^) There are hundreds of Japanese candlestick patterns making learning a challenge.
■ (^) The majority of Japanese candlestick patterns are reversal patterns and as such
require the trader to establish a position against the direction of the existing trend.
single, double, triple, and multiple
Candlestick formations
Japanese candlestick patterns consist of single, double, triple, and multiple candle-
stick formations. Price confirmation is usually based on the price level of a preced-
ing candlestick, rather than on the latest or current candlestick OHLC price.
Some Single Japanese candlestick patterns include:
■ (^) Hammer
■ (^) Inverted Hammer
■ (^) Hanging Man
■ (^) Spinning Top
■ (^) Shooting Star
■ (^) Marubozu
Some Double Japanese candlestick patterns include:
■ (^) Bullish and Bearish Harami
■ (^) Bullish and Bearish Harami Crosses
■ (^) Bullish and Bearish Engulfing Patterns
■ (^) One White Soldier
■ (^) One Black Crow
■ (^) Doji Stars
■ (^) Dark Cloud Cover
■ (^) Piercing Line
■ (^) Separating Line
■ (^) Kicking Line
■ (^) Meeting Line
■ (^) On‐Neck and In‐Neck Patterns
■ (^) Tweezers Tops and Bottoms
*There are many labels for the One White Soldier and One Black Crow.
The labels used here were created by Gregory Morris, in his book Candle-
stick Charting Explained. Thomas Bulkowski uses the labels “Below the
Stomach” and “Above the Stomach” in his book Encyclopedia of Candle-
stick Charts.
Some Triple Japanese candlestick patterns include:
■ (^) Three Black Crows
■ (^) Identical Three Crows
■ (^) Three White Soldiers
■ (^) Abandoned Baby
■ (^) Evening and Morning Stars