Candlestick Chart Patterns

What is a candlestick?

A candlestick is a way of displaying information about an asset’s price movement. Candlestick charts are one of the most popular components of technical analysis, enabling traders to interpret price information quickly and from just a few price bars. It has three basic features:

The body, which represents the open-to-close range

The wick, or shadow, that indicates the intra-day high and low

The color, which reveals the direction of market movement – a green (or white) body indicates a price increase, while a red (or black) body shows a price decrease

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• FALSE

What is Stock Trend Analysis?

Stock trend analysis is using past price action to predict a future trend. Trends tend to continue — whether they’re intraday or long term.

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• FALSE

What Is a Stock Trend Line?

A stock trend line is a sloping line that connects the candles of a Candlestick Pattern on a stock’s trend chart. Traders use this line to gauge whether a stock is keeping with the trend or breaking it.

Use a trend line with other trend indicators to confirm price action. 

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• FALSE

What is the indicated candlestick pattern shown in the image?

• Shooting Star

• Hammer

• Hanging Man

What is the indicated candlestick pattern shown in the image?

• Bullish Inside Up

• Bullish Outside Up

• Bearish Inside Down

What is the indicated candlestick pattern shown in the image?

• Doji

• Hanging Man

• Shooting Star

What is the indicated candlestick pattern shown in the image?

• Hanging Man

• Marubozu

• Shooting Star

What is the indicated candlestick pattern shown in the image?

• Hammer

• Inverted Hammer

• Doji

What is the indicated candlestick pattern shown in the image?

• White Marubozu

• Bearish Engulfing

• Bullish Engulfing

What is the indicated candlestick pattern shown in the image?

• Bullish Harami

• Bearish Engulfing

• Black Marubozu