Japanese candlesticks-cheat-sheet

1. Copyright 2014 by Jan de Wit – http://www.investment-guru.com























Hammer: bullish
pattern after significant
downtrend
Bullish Doji: indicates
a reversal, direction
still unknown. Wait for
next candle.
Piercing Line: the bull
candle opens lower
than the bear’s low,
closes above bear’s
middle.
Bullish engulfing lines:
strong bullish if after
strong downtrend.
Bigger than previous
bear.
Morning star: indicates
a possible reversal,
confirmed by bullish
candle
Long bearish candle:
price opens near the high
and closes near the low.
Hanging man: small candle
bodies and long shadow.
Can also be bullish
Dark Cloud Cover: more
significant if second candle’s
body is below centre of first one.
Bullish: uptrend
Bearish: downtrend

2. Copyright 2014 by Jan de Wit – http://www.investment-guru.com























Spinning tops: neutral
pattern. Distance between
open close is small.
Doji: no trend. Open and
close are the same.
Double doji: a big breakout
will follow shortly
Harami: bearish candle is smaller
than the bullish body. Bullish
momentum has decreased.
Long-legged Doji: open and
close are the same, big range
between high and low –
turning point coming.
Dragonfly Doji: open and
close are the same, low
significantly lower than open
– turning point coming.
Gravestone Doji: open and
close are the same, high
significantly higher than
open – turning point coming.

Stars: a reversal is indicated.
The second candle is in the
shadow of the first.

Neutral trends