Recent Updates

We launched AI learning feature.

Tweezer

Tweezer

The Tweezer Pattern is a two day pattern indicating either a market high or market low. 
A Tweezer Top pattern has highs of the candlesticks equal and is a bearish reversal pattern.  These candlesticks can be of real bodies, shadows or dojis.
 Tweezer Top -3      Tweezer Top-1 Tweezer Top -111
A Tweezer Bottom pattern has lows of candlesticks equal and is a bullish  reversal pattern.Candlesticks can be of real bodies or shadows or doji’s. 

Tweezer Bottom -1

Tweezer Bottom-3

Tweezer Bottom

 

Psychology of the Tweezer pattern is that both bears or bulls are not able to push the prices further up or down and hence are considered as a trend reversal. 
Tweezer Top occurs during an uptrend. On Day1 bulls push prices higher, Then, on Day2  bears  reverse the market sentiment i.e market does not breach the prior day’s highs, and heads straight down, often eliminating most of the prior period’s gains.

Tweezer Bottom -2Tweezer Bottom  occurs during a downtrend. On Day1  bears  push prices down by pushing the price near low and then, on Day2  bulls reverse the market sentiment i.e market does not breach the prior day’s low instead  price of the security goes up, often eliminating most of the prior day’s losses for bulls.

 Tweezer Top -22

Practice Tweezer Pattern – Beginner

 

Upside Gap Two Crows

Upside Gap Two Crows

The Upside Gap Two crows is a three candlestick  trend reversal pattern. 
This pattern occurs after an uptrend.Day1 has a longer bullish  candlestick. Second day candlestick is a gapped up bearish candlestick and the real body should be above the real body of the first day’s candlestick. Day3 candlestick is a bearish candlestick that gaps up from the Day2 candlestick and closes below the close Day2 candlestick. Day3 candlestick basically engulfs the real body of Day2 real body. 

Upside Gap Two Crows-1
  
Psychology of Piercing pattern is that on day one bullish candlestick  confirms the previous uptrend. On Day2 the price of the security gaps up to indicate bulls  are dominating  but instead the price of the security closes bearish but still higher than the Day1 closing price. On Day3  bulls attempt to take the prices again with the gap up but the bears take control and  push the price of the security down  below the real body of Day2.  As bears are able to push the prices down in two successive days, this indicates the price of the security can be expected to go down or move sideways. 

 Upside Gap Two Crows-3 Upside Gap Two Crows-2

 

As like any other, Upside Gap two crows  require confirmation candlesticks in the following days. If future day candlesticks go above  the Day3 candlestick  then the pattern is voided. 

Practice Upside Gap Two Crows – Beginner

 

Three Black Crows

Three Black Crows

TheThree black crows is a three day trend reversal pattern. 
This  happens after a uptrend and it has all bearish candlesticks which close near the lower price of that particular day. The open price of each of the candlestick should be with in the real body of the previous day’s candlestick

Three Black Crows Pattern -1 

Psychology of Three black crows  pattern is that during uptrend  one large bodied bearish candlestick on Day 1 indicates  that bears managed to keep the price of the security at low. This is repeated on Day 2 and Day 3. As Open, High, Low and close of these bearish  candlesticks are lower than the previous day’s candlesticks, it indicates the strength of bearish  momentum and signals that prices are moving down. 

Three Black Crows Psychology

Three Black Crows – Beginner

Three Black Crows – Intermediate

Three Black Crows – Advanced

Three White Soldiers

Three White Soldiers

Three white soldiers is a three day trend reversal pattern. 
This  pattern happens after a downtrend. It consists of three large bullish candlesticks with each of them closing higher than the previous one. Each of these candlesticks should open within the body of the previous one. The upper wicks should be very small or non-existing 

Psychology of Three white soldierspattern is that  during downtrend one large bodied bullish candlestick on Day 1 indicates  that bulls managed to keep the price of the security at high which indicates strength. This is repeated on Day 2 and Day 3. As Open, High, Low and close of these bullish candlesticks are higher than the previous days candlesticks, it indicates the strength of bullish momentum and signals that prices are moving up. 

Three White Soldiers -1

 

Practice Three White Soldiers – Beginner

Practice Three White Soldiers – Intermediate

Practice Three White Soldiers – Advanced

Spinning Top

Spinning Top

The spinning top is a single day candlestick pattern.

A spinning top has a small real body i.e no difference between the open and close price of the security.  It shows that neither bulls nor the bears are in control. Multiple spinning tops may be a signal for upcoming trend reversal. 

Spinning Top at Bottom

Spinning Top at the Top

 

The psychology of Spinning top is that on the day of the spinning top the bulls sent the price higher and bears then sent the price lower which results in the asset price closing near where it opened. For security, If multiple days spinning top candlesticks are occurring after the previous uptrend then it might be a sign of consolidation and upcoming downtrend and vice-versa.

Spinning Top - Pyschology

High wave candlesticks are spinning tops with long upper and lower shadows.

High Wave Candle

Practice Spinning Top – Beginner

Practice Spinning Top – Intermediate

Practice Spinning Top – Advanced

Practice Spinning Top – Expert

 

Shooting Star

Shooting Star

The Shooting star is a one day potential trend reversal pattern. 
It usually occurs after an uptrend.
Shooting star has a small real body at the bottom of the candlestick with a long upper shadow and little to no lower shadow. Real body can be either bullish or bearish. Shooting star is usually preceded by bullish candlestick 

 

Psychology of  shooting star pattern is that  following an uptrend, bulls  open the day with a gap up from earlier days close and continue to push prices up. However bears are able to push down prices to be close to the start of the day. 
This pattern is also called a bearish inverted hammer.

 

Practice Shooting Star – Beginner

Practice Shooting Star – Intermediate

Practice Shooting Star – Advanced

Practice Shooting Star – Expert

 

 

Rising Three Methods Candlestick Pattern

Rising Three Methods Candlestick Pattern

Introduction:

Rising Three Methods candlestick pattern is five-day bullish continuation pattern. This pattern provide insights into the market’s psychology, and traders and investors often use them to add to or close positions.

What is the Rising Three Methods Candlestick Pattern?

 

 

 

Rising Three Methods 

The Rising Three Methods pattern is a five-day bullish continuation pattern that typically occurs during an uptrend. Here’s how it works:

  • Day 1: A longer bullish candlestick confirms the previous uptrend.
  • Days 2 to 3: Small real body candlesticks, whether bullish or bearish, consolidate the trend.
  • Day 5: A large bullish candlestick closes above Day 1’s closing price, indicating that the bulls are continuing to dominate.

Why is the Rising Three Methods Candlestick important?

Traders and investors often use the Rising Three Methods pattern as a signal to add to long positions. It’s a sign that the uptrend has enough momentum to continue, and traders can benefit from riding the trend.

 

 

Rising Three Methods-3

How to Identify the Pattern ?

To identify the Rising Three Methods and Falling Three Methods patterns, you can use indicators on your TradingView chart. However, it’s important to note that these patterns require confirmation in the following days. If the future day candlesticks break the pattern, then it’s voided.

Conclusion:

The Rising Three Methods patterns are useful tools for traders and investors looking to capitalize on market trends. By understanding the psychology behind these patterns, you can make more informed trading decisions.

 

Next Read: Falling Three Methods Candlestick Pattern

Start Learning

Bullish Piercing Pattern

Bullish Piercing Pattern

 

The Piercing pattern  is a two day trend reversal pattern. 

A Piercing pattern  happens after a downtrend. Day one has a longer bearish candlestick. Second day candlestick opens below the previous day low and  has a closing day price within ( more than 50% into )  day1 real body. 

 

Bullish Piercing Pattern-4

 Bullish Piercing Pattern-2   

 

Bullish Piercing Pattern-5

Psychology of Piercing pattern is that on day one bearish candlestick confirms the previous downtrend. On Day 2 price of the security gaps downward to indicate bears are dominating  but instead of price continuing to go downward, the price begins to rise and ends up going up more than half of the Day 1 candlestick to indicate that bulls are ready to take the prices higher. 

Bullish Piercing Pattern-3

As like any other, piercing patterns require confirmation candlesticks in the following days. If future day candlesticks go below the Day 2 candlestick low then the piercing pattern will be voided. 

 

Practice Piercing Pattern – Beginner

Practice Piercing Pattern – Intermediate

Practice Piercing Pattern – advanced

Practice Piercing Pattern – Intermediate

 

 

Inverted Hammer

Inverted Hammer

The Inverted Hammer is a single day pattern.

Inverted Hammer occurs when the price of the asset being traded  goes down significantly lower than the opening price and then bounces back on the same day to close near the opening price.

Inverted Hammer Candlestick has a small real body either bullish or bearish and a small or no lower shadow with a large upper shadow.  

Inverted Hammer occurs after a downtrend and is a bottom reversal pattern. Traders should wait for the next trading day session for confirmation  of the pattern i.e gap up or strong bullish candlestick. 

Inverted-Hammer-Details-Details

Inverted-Hammer-Details

Inverted-Hammer-Details

Psychology of Inverted Hammer pattern is that market is in a downtrend and On the market day open bears start selling resulting in price decline.During the closing day, bulls  take over control and push prices back up a little bit.  Next trading session gapping up and moving higher confirms the reversal. 

Inverted Hammer candlestick is considered as a bottom  reversal pattern, just like Hammer. 

Practice Inverted Hammer – Beginner

Practice Inverted Hammer – Intermediate

Practice Inverted Hammer – Expert

 

Morning Star

Morning Star

The Morning Star is a three day bottom reversal pattern.

The Day 1 of the morning star pattern consists of a long bearish candlestick after a previous downtrend.

The Day 2 candlestick gaps down,  i.e candlestick opens at a lower price than the first day’s closing price. It must  be a small candlestick and can be either bullish or bearish; however the key is that the real body of the this candlestick will be  below the real body of the first day. 

The Day 3 is a large bullish candlestick that closes into the first day’s real body. When the Day 2 candlestick is a Doji in the Morning Star then the pattern becomes Morning Doji Star. 

Psychology behind the pattern is Day 1  is a large bearish candlestick that strengthens  the prior continual downtrend. The Day 2 candlestick opens lower than the Day 1 close, thus gapping down and once again shows  that the bears are in control of the market. However, the bears are not able to push prices further downward. The doji, or small real body of the Day 2  shows there is a stalemate between the bulls and the bears. On Day 3  bullish candlestick shows that the  bulls  are now in control of the market.

   

 

 

Practice Morning Star Pattern – Beginner

Practice Morning Star Pattern – Intermediate

Practice Morning Star Pattern – Advanced

Practice Morning Star Pattern – Expert

Kicking Pattern

Kicking Pattern

The Kicking Pattern is a two day reversal pattern. Day two candlestick starts an opposite trend to the previous one. 

A Bullish Kicking  Pattern happens to offer a downtrend. Day one candlestick  is bearish marabozu ( with no little to no upper or lower shadow) . Second day candlestick opens either with a gaps up or at same day1 price level and becomes A bullish marabozu (with little to no upper or lower shadow).

Kicking Pattern occurs when the price of the asset being traded  goes up significantly higher than  the closing price. Candlesticks are mostly marabozu’s.

Psychology of Bullish Inverted Hammer pattern is that on day one bears are completely in control. Day two gap up will indicate substantial change in market psychology with bulls taking control.

Same principle applies to Bearish Inverted Hammer where bears take control on day two.

 

 

Practice Kicking Pattern – Beginner

Practice Kicking Pattern – Intermediate

Practice Kicking Pattern – Advanced

 

 

 

Bearish Belt Hold Lines

Bearish Belt Hold Lines

Introduction

Bullish Belt hold lines is a one day candlestick pattern. It is a single candlestick pattern that occurs during a downtrend and signifies a potential reversal or continuation of the bullish trend.

What is Bullish Belt Hold Lines Candlestick pattern?

Belt Hold Line - Bullish
A bullish belt hold occurs when prices open on the low of the day and then immediately move higher creating a long bullish candlestick. The bullish belt hold is also referred to as a white opening shaven top. Prices open on the low of the day and then move to the top for the remaining period, thus creating a long bullish candlestick. 

 

 

 

 

Why is Bullish Belt hold Lines Candlestick pattern important ?

The psychology behind the bullish belt hold line pattern is as follows:

  1. Opening Price: The pattern starts with a bullish candle that opens at or near the low of the session, indicating buying pressure right from the start. This suggests that bulls are in control of the market sentiment.
  2. Buying Pressure: Throughout the session, buyers continue to dominate the market, pushing the price higher. The candle’s body remains bullish, indicating sustained buying pressure and a lack of selling interest.
  3. No Upper Shadow: One characteristic of the bullish belt hold line pattern is the absence of an upper shadow or a very small one. This signifies that the bulls have maintained control throughout the session without allowing any significant selling activity.
  4. Closing Price: The bullish candle closes near its high, further reinforcing the dominance of bulls in the market. This suggests that buyers are in control until the end of the session, and there is little to no bearish sentiment.

Psychology of this pattern is that investors think the price of the security is highest ( may be future resistance  area! ) and sell, resulting in bearish belt hold. This may result in future downtrend.Bearish belt hold traders think that price is too high and sell (may be future resistance area! ). This might result in future downtrend. Try to observe this pattern on  your TradingView chart.

 

Belt Hold Line - Bullish

Belt Hold Line - Bullish 2

Start Learning

Next Read:  Three white Soldiers candlestick pattern!