Reversal Candlestick Patterns

Candlesticks are used to identify trading patterns that help technical analysts in setting up trades.

The 7 High Probability Reversal Candlestick Patterns are listed below. During the trending market you should be watching out for these reversal candlestick patterns.

A single candlestick can sometimes provide powerful signals.

Bullish	Candles	Bearish
	The Doji
	The Engulfing Patterns
	Piercing Line and Dark Cloud
	The Haramis
	Hammer & Shooting Star
	Spinning Tops
	Railway Track Patterns

The location in which these candlesticks are formed is critical. If you spot a bullish reversal candlestick during an uptrend then the probability of a price increase will be high.

The opposite is also true i.e if you see a bearish reversal candlestick during an downtrend then what is the probability that price will go UP? Quite low! (This is trendline trading strategy setup).

Next In Line

Doji Candlestick

Doji is a very powerful candle shows a balance of supply and demand.

Hanging Man Candlestick

Hanging Man candle which gives a very strong signal of a trend reversal.

Inverted Hammer Candlestick

This candle implies a very strong signal of a trend reversal (to uptrend).

Moving Average Indicator

This indicator is used on charts for trend identification.