Important Candlestick Pattern Definitions!

Updated
Hello followers and other TradingView users!
In this topic, I would like to describe some candlestick pattern to find confirmation on the strong price levels!

"Engulfing"
The Engulfing pattern is a two-candle reversal pattern. A reversal pattern that can be bearish or
bullish, depending upon whether it appears at the end of an uptrend (bearish engulfing pattern) or a
downtrend (bullish engulfing pattern). The first day is characterized by a small body, followed by a
day whose body completely engulfs the previous day's body and closes in the opposite direction of
the trend.


"Railroad Tracks"
snapshot
A bearish railway track pattern has the first candlestick bullish and the second candlestick bearish.
That fact that there’s a sudden change from bullish to bearish candlestick should be a good indication
that there might be a bearish trend forming. If you see it on the levels of resistance or downward
trendlines the more powerful it is!


"Morning Star"
snapshot
The morning star is a bullish, bottom reversal pattern. It warns of weakness in a downtrend that could
potentially lead to a trend reversal. The morning star consists of three candlesticks with the middle candlestick
forming a star. The first candlestick in the morning star pattern must be a red candlestick with a relatively
large real body. The second candlestick is the star, which has a short real body that is separated from the
real body of the first candlestick. The star does not need to form below the low of the first candlestick and
can exist within the lower shadow of that candlestick. The star is the first indication of weakness as
it indicates that the sellers were not able to drive the price close much lower than the close of the previous period.
This weakness is confirmed by the third candlestick, which must be green in colour and must close 50% above from the body of the first candlestick.


"Evening Star"
snapshot
The Evening Star is a bearish, top trend reversal pattern that warns of a potential reversal of an uptrend. It is the opposite of the Morning Star and,
like the morning star, consists of three candlesticks, with the middle candlestick being a star. The first candlestick in the evening star must be green in
colour and must have a relatively large real body. The second candlestick is the star, which is a candlestick with a short real body that does not touch
the real body of the preceding candlestick. The star can also form within the upper shadow of the first candlestick. The star is the first indication of weakness as it indicates that the buyers were
unable to push the price up to close much higher than the close of the previous period. This weakness is confirmed by the candlestick that follows the star.
This candlestick must be a red candlestick and must close 50% above from the body of the first candlestick.


"Hammer"
snapshot
The Hammer is a bullish reversal pattern, which signals that an asset is nearing a bottom in a
downtrend. The body of the candle is short with a longer lower shadow (wick) which is a sign of
sellers driving prices lower during the trading session, only to be followed by strong buying pressure
to end the session on a higher close.


"Shooting Star"
snapshot
A shooting star is a bearish candle with a long upper shadow, little or no lower shadow and a small
real body near the day's low. It comes after an uptrend. For a candlestick to be considered a shooting star, the formation
must be on an upward or bullish trend, and the distance between the highest price for the day and the opening price must
be more than twice as large as the shooting star's body. The distance between the lowest price for the day and the closing price must be very small or nonexistent.
Note
Hopefully, now You have a better understanding of candlestick patterns! Those are just indications, they work very well when they are on the good and strong price levels!

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Note
"TWEEZER"
snapshot
"Tweezers are both a topping (example above) and bottoming pattern – patterns that indicate a shift in trend direction – although a broader context is usually needed to confirm the signal since tweezers can occur frequently. A topping pattern occurs when the highs of two candlesticks occur at almost exactly the same level following an advance. A bottoming pattern occurs when the lows of two candlesticks occur at almost exactly the same level following a decline.

Additional criteria are that the first candle has a large real body (a difference between open and close), but the second candle can be pretty much any size; therefore, the two candles may look quite different. For example, in a tweezers top, the first candlestick may be a very strong up candle, closing near the high, while the second candle may be a doji – a cross-shaped, neutral candlestick pattern – that doesn't close near the high but still has a similar high to the first candle."
Note
"PIERCING"
snapshot
"Piercing" candlestick patterns indicate an incoming bullish reversal.
A two candle pattern, the first candle is a long green bearish candle.
The first candlestick must be a red candle with a large real body and the second candlestick should be green and should open below the low of the previous candlestick. The second candlestick must close above the middle of the real body of the first candlestick, with the deeper it pierces the first candlestick the more significant the pattern becomes.
Note
"DOJI"
snapshot
It looks like a cross, with the same or almost the same opening and closing price.
It clearly indicates that the bulls and the bears are at an equilibrium. The Doji appearing at the end of an extended trend, it would indicate that the trend may be ending.
Like the Japanese (the 'birthplace' of candlesticks) say - whenever a Doji appears, always take notice.
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