Mastering Japanese Candlestick Patterns in Market Analysis

1. What does a NEUTRAL DOJI STAR candlestick pattern represent?

A spinning top candlestick pattern suggesting a continuation of the current trend.

A neutral candlestick that represents indecision. Represents in many cases a pending reversal.

A bullish candlestick indicating a strong buying pressure.

A bearish candlestick signaling a strong selling pressure.

The NEUTRAL DOJI STAR is a candlestick pattern that signifies indecision in the market, potentially hinting at a pending reversal. It is not directly indicative of bullish or bearish pressure or a continuation of the current trend.

Explanation

The NEUTRAL DOJI STAR is a candlestick pattern that signifies indecision in the market, potentially hinting at a pending reversal. It is not directly indicative of bullish or bearish pressure or a continuation of the current trend.

2. What is a LONG LEGGED DOJI?

No shadows at all.

Long lower shadows only.

Long upper shadows Long lower shadows

Long upper shadows only.

A long-legged doji is a candlestick pattern that has long upper and lower shadows, indicating indecision and potential reversal in the market.

Explanation

A long-legged doji is a candlestick pattern that has long upper and lower shadows, indicating indecision and potential reversal in the market.

3. What is a GraveStone/Tombstone Doji?

Open and Close occur at the same high end of the candlestick. At top of uptrend - Bearish Signal

Open and Close occur at the opposite ends of the candlestick. At top of uptrend - Bullish Signal

Open and Close occur at the same low end of the candlestick.At top of uptrend- Bearish Signal

Open and Close occur at the same high end of the candlestick. At bottom of downtrend - Bullish Signal

A GraveStone/Tombstone Doji is a candlestick pattern where the open and close occur at the same low end of the candlestick, usually signaling a potential reversal at the top of an uptrend. It is considered a bearish signal as it indicates indecision and a possible trend reversal.

Explanation

A GraveStone/Tombstone Doji is a candlestick pattern where the open and close occur at the same low end of the candlestick, usually signaling a potential reversal at the top of an uptrend. It is considered a bearish signal as it indicates indecision and a possible trend reversal.

4. FOUR PRICE DOJI.

A candlestick pattern with four price levels including open, high, low, and close.

A candlestick pattern representing a strong bullish trend reversal.

A pattern indicating a significant price increase in the near future.

A technical analysis pattern involving four candles with the same closing price.

Currency is the same. Open Close High Low.Complete indecision.

The Four Price Doji is a candlestick pattern in technical analysis that signifies complete indecision in the market. The opening, closing, high, and low prices are all the same, indicating uncertainty among traders.

Explanation

The Four Price Doji is a candlestick pattern in technical analysis that signifies complete indecision in the market. The opening, closing, high, and low prices are all the same, indicating uncertainty among traders.

5. What is a SPINNING TOP?

An ancient form of dance performed in ceremonies.

Small body long wick

A type of vehicle used for transportation.

A type of fruit found in the jungle.

A spinning top is a toy that spins on its axis, typically a small body with a long wick that can be wound up to spin rapidly. It is not related to fruits, dance, or vehicles.

Explanation

A spinning top is a toy that spins on its axis, typically a small body with a long wick that can be wound up to spin rapidly. It is not related to fruits, dance, or vehicles.

6. What is the significance of a hammer candlestick pattern?

The hammer candlestick pattern indicates a continuation of the current trend.

The color of the small body in a hammer candlestick pattern does not hold any significance.

The hammer candlestick pattern is only reliable in uptrends, not downtrends.

A hammer candlestick pattern is a reversal pattern that occurs at the bottom of a downtrend. It signals a potential reversal to the upside. The color of the small body in a hammer candlestick pattern can provide additional insight into market sentiment, with a green body suggesting bullish sentiment and a red body suggesting bearish sentiment.

Explanation

A hammer candlestick pattern is a reversal pattern that occurs at the bottom of a downtrend. It signals a potential reversal to the upside. The color of the small body in a hammer candlestick pattern can provide additional insight into market sentiment, with a green body suggesting bullish sentiment and a red body suggesting bearish sentiment.

7. What is an Inverted Hammer?

A candlestick pattern indicating a continuation of the current trend.

A candlestick pattern that occurs at the top of an uptrend, indicating a potential bearish reversal.

A candlestick pattern with a long body and short wicks, suggesting strong buying or selling pressure.

An Inverted Hammer is a candlestick pattern with a small body and a long upper wick that appears at the bottom of a downtrend, suggesting a potential reversal in price direction. A green body in an Inverted Hammer indicates more of a bullish sentiment compared to a red body. It is important to consider the overall market context when interpreting this pattern.

Explanation

An Inverted Hammer is a candlestick pattern with a small body and a long upper wick that appears at the bottom of a downtrend, suggesting a potential reversal in price direction. A green body in an Inverted Hammer indicates more of a bullish sentiment compared to a red body. It is important to consider the overall market context when interpreting this pattern.

8. What does a SHOOTING STAR indicate?

Found at the top of an uptrend and suggests a reversal.

Indicates a continuation of the current trend.

Represents a market consolidation phase.

Signifies the beginning of a downtrend.

A shooting star is a bearish reversal candlestick pattern that forms at the top of an uptrend, indicating a possible trend reversal. It suggests that buyers are losing control and that a potential downtrend may follow.

Explanation

A shooting star is a bearish reversal candlestick pattern that forms at the top of an uptrend, indicating a possible trend reversal. It suggests that buyers are losing control and that a potential downtrend may follow.

9. What does a MARABOZU indicate in the market?

Uncertain market conditions.

Indicates a temporary price movement.

A reversal in the market trend.

A MARABOZU candlestick pattern is typically indicative of a strong bearish or bullish continuation in the market. It has a long full body with little or no wick. If found at the top or bottom of a trend, it may suggest a reversal if at significant support/resistance lines.

Explanation

A MARABOZU candlestick pattern is typically indicative of a strong bearish or bullish continuation in the market. It has a long full body with little or no wick. If found at the top or bottom of a trend, it may suggest a reversal if at significant support/resistance lines.

10. What is the significance of a Dragonfly Doji candlestick pattern?

Suggests a neutral market sentiment with no clear direction.

Indicates a strong bearish trend reversal.

Signifies a continuation of the current uptrend.

A Dragonfly Doji candlestick pattern is considered a bullish signal when it appears at the bottom of a downtrend. It typically trades lower and closes at the open price, which is also the high of the day. This pattern suggests a potential reversal of the downtrend and a shift towards bullish sentiment.

Explanation

A Dragonfly Doji candlestick pattern is considered a bullish signal when it appears at the bottom of a downtrend. It typically trades lower and closes at the open price, which is also the high of the day. This pattern suggests a potential reversal of the downtrend and a shift towards bullish sentiment.

11. What candlestick pattern is represented by a small body with a long bottom wick, potentially signaling a reversal at the top of an uptrend?

Doji

Shooting Star

Hammer

Small body long bottom wick.At the top of uptrend may suggest a reversal.A red small body has more bearish sentiment.

The Hanging Man candlestick pattern is characterized by a small body with a long bottom wick and is typically observed at the top of an uptrend. It signals potential bearish sentiment and a possible trend reversal. A Shooting Star has a small body with a long upper wick and typically appears at the top of an uptrend, signaling a potential reversal as well. Doji is a candlestick pattern with a small body, indicating indecision in the market. A Hammer has a small body with a long lower wick and is usually a bullish reversal pattern.

Explanation

The Hanging Man candlestick pattern is characterized by a small body with a long bottom wick and is typically observed at the top of an uptrend. It signals potential bearish sentiment and a possible trend reversal. A Shooting Star has a small body with a long upper wick and typically appears at the top of an uptrend, signaling a potential reversal as well. Doji is a candlestick pattern with a small body, indicating indecision in the market. A Hammer has a small body with a long lower wick and is usually a bullish reversal pattern.