Candlestick reversal patterns

Candlestick reversal patterns are patterns whose appearance in an existing trend indicate that the sentiment of traders have changed, and this change of market sentiment will lead to a reversal of the existing trend. Candlestick reversal patterns can thus be classified into bearish reversal and bullish reversal candlesticks.

Examples of bearish reversal candlesticks are:

  • Shooting star
  • Evening Star Doji
  • Hanging man
  • Bearish engulfing
  • Bearish harami
  • Three black crows
  • Dark cloud cover
  • Evening Star
Examples of bullish reversal candlesticks are:
  • Inverted hammer
  • Hammer
  • Morning Doji Star
  • Bullish harami
  • Bullish engulfing
  • Three white soldiers
  • Abandoned baby
  • Morning Star
  • Piercing line
  • Stick sandwich
While some of the candlesticks have high reliability (Morning and Evening Doji star, Morning and Evening Star, the engulfing and harami patterns), the others are less reliable and require further confirmation of the impending reversal before a trade is opened in the direction of the reversal.