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Candlesticks

This document discusses candlestick patterns that can be used to analyze cryptocurrency markets. It defines bullish and bearish candlestick formations like spinning tops, hammers, and morning stars. These patterns provide clues about the likelihood of future price movements. For example, a bullish engulfing pattern suggests prices will likely continue rising in the next period, while a hanging man is a sign of a potential bearish reversal. The document aims to introduce traders to basic candlestick patterns and their implications for interpreting market trends and reversals.

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shanthila
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641 views2 pages

Candlesticks

This document discusses candlestick patterns that can be used to analyze cryptocurrency markets. It defines bullish and bearish candlestick formations like spinning tops, hammers, and morning stars. These patterns provide clues about the likelihood of future price movements. For example, a bullish engulfing pattern suggests prices will likely continue rising in the next period, while a hanging man is a sign of a potential bearish reversal. The document aims to introduce traders to basic candlestick patterns and their implications for interpreting market trends and reversals.

Uploaded by

shanthila
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Crypto Trading

Candlesticks

Bullish Bearish Selection of Basic


upper
high shadow
/ wick
high Candlestick Formations
closing opening
price price
real
body Candlesticks tell something
opening closing
price price about the likelihood for the next
lower
low shadow low price movement directions:
/ wick

Single

Spinning Top Doji Green Marubozu Red Marubozu

neutral neutral bullish bearish


small body with very flat to no body: full green body full red body
longer wicks: trend gets weak, without wicks: without wicks:
possible reversal indecision strong bullish sign strong bearish sign
signal

Hammer Hanging Man Inverted Hammer Shooting Star


bullish bearish bullish bearish
long wick + short long wick + short long wick + short long wick + short
body at the top after body at the top after body at the bottom body at the bottom
bearish candles: bullish candles: after bearish candles: after bullish candles:
possible bullish possible bearish possible bullish possible bearish
reversal signal reversal signal reversal signal reversal signal

www.cryptotradingbook.com
Crypto Trading

Candlesticks

Double

Bullish Engulfing Bearish Engulfing Tweezer Tops Tweezer Bottoms


bullish bearish bearish bullish
small bearish candle bullish candle entire- 2 equally high tops 2 equal lows at end
engulfed by bullish ly engulfed by larger at end of uptrend of downtrend (double
candle: bullish sign bearish candle: (double top): bottom):
bearish sign bearish reversal bullish reversal likely
likely
Triple

Morning Star Evening Star 3 White Soldiers 3 Black Crows

bullish bearish bullish bearish


long red candle + long green candle + 3 long bullish 3 long bearish
lower sitting short higher sitting short candles: ongoing candles after bull
candle + long green candle + long red candle uptrend likely trend: signal for end
candle above: gaping lower: of rally
bullish reversal likely possible bearish reversal

Neutral:
Sign of market indecision; Likelihood for next
candle to be bullish or bearish is equal

Bullish:
3 Inside Up 3 Inside Down
The likelihood that price will continue to
rise in the next candlestick(s) is high
bullish bearish
long red candle engul-
fing short green candle +
long green candle en-
gulfing short red candle Bearish:
higher long green candle: + lower long red candle:
The likelihood for a further price decrease
likely sign for bullish likely sign for bearish
reversal reversal in the next candlestick(s) is high

www.cryptotradingbook.com

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