Forex candlestick is Japanese traditional chart which like candles. Candlestick consists of a real body and shadows or tails.
Doji candlestick pattern
Doji candlestick is one of the best forex candlestick reversal patterns. Doji candlestick occurs when the open and close price are in the same level (or very close). Doji’s shadow also is the most important candlestick reversal pattern.
Doji Star candlestick pattern
Doji star same as doji, this pattern occurs when the open and close price are in the same level (or very close) but doji star candlestick occurs after gaps from the first candlestick (long candlestick).
Engulfing candlestick pattern
There are two kind of candlestick Engulfing pattern, bullish engulfing pattern and bearish engulfing pattern. A bearish engulfing pattern consists of small white body and long black candlestick at the second. A bullish engulfing candlestick consist of small black candlestick pattern and long black candlestick.
Evening Doji Star candlestick pattern
Same as a doji star pattern but the evening doji star has third candlestick. The third candlestick is black candlestick. This black candlestick is considered as a confirmation reversal pattern.
Hammer is the most traded candlestick pattern among forex traders. The hammer and the Hanging man both has the same construction. Hammer candlestick has a small body and long lower shadow, if doji candlestick occurs in a bearish trend so this candlestick pattern becomes a bullish hammer. But remember, he long lower shadow must be at least twice the height of the hammer’s body.
Harami candlestick pattern
There are two kind of harami candlestick, bullish harami and bearish harami candlestick pattern. Bullish harami has long black candlestick at the first and small white candlestick at the second candlestick. Bearish harami has long white candlestick at the first and small black candlestick at the second candlestick. Actually the color of the second candlestick can be black or white but usually the second candlestick has the opposite color of the first candlestick.
Harami cross candlestick
Harami cross actually has the same construction with Harami candlestick. But the Harami cross has a doji candlestick at the second candlestick. Bullish harami cross has long black candlestick and doji at the second candlestick. Bearish harami cross has long white candlestick at the first and doji at the second candlestick.
Just like its name, inverted hammer is like a hammer but inverted. The inverted hammer has small or very small body, no lower shadow but has a long upper shadow. The upper shadow at least twice the height of candlestick body. Inverted hammer has the same construction as the bearish shooting star, but this pattern only appears in a bearish trend, this candlestick pattern is a bullish reversal pattern.
Morning Doji Star
Morning doji star is like evening doji star but inverted. The first candlestick is long black candlestick, the second is doji star candlestick and the third candlestick is white candlestick. Because this pattern consists of doji star it is identified trend bullish reversal.
Piercing candlestick pattern
Piercing candlestick pattern is a bottom reversal formation. In a bearish trend, the first candlestick is a long black candlestick and then continued by a gap down but completed as a long white candlestick. This formation is a bullish trend reversal.
Tweezers candlestick formation
Tweezers has two variants, Tweezers top and Tweezers bottom, This formation is built when the same supports or resistances are tested the next bars or within a few bars.