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Forex Candlestick Patterns Cheat Sheet

September 18, 2017 by

The topic of the Japanese candlestick patterns in currency trading is rather controversial because not all of them apply to the spot foreign exchange market. With almost no gaps between the candles and no definite daily close/open levels, the traditional candlestick patterns are somewhat less applicable in Forex. The cheat sheet below summarizes the candlestick patterns as they present themselves in FX trading. It omits some of the famous ones, which work well in equities but do not do well in currencies, and provides modifications of other patterns to fit the currency trading perspective.

The cheat sheet below provides a quick reference for the following 26 candle patterns:

Basic Doji, Basic Star, Hammer, Inverted Hammer, Dragonfly Doji, Bullish Spinning Top, Shooting Star, Hanging Man, Gravestone Doji, Bearish Spinning Top, Bullish Engulfing, Bullish Harami, Tweezers Bottom, Bearish Engulfing, Bearish Harami, Tweezers Top, Morning Star, Three White Soldiers, Bullish Three Line Strike, Evening Star, Three Black Crows, Bearish Three Line Strike, Three Inside Up, Thee Outside Up, Three Inside Down, Three Outside Down.

You can click on it to get a larger scale image and save it for further reference:

Cheat Sheet with 26 Japanese Candlestick Chart Patterns Specific to Forex Trading

Important note: It is crucial to take the context of the pattern into account when trading Japanese candlesticks. A preceding downtrend is required for the bullish reversal patterns. A preceding uptrend is required for the bearish reversal patterns.

If you find an error in this Japanese candlestick patterns cheat sheet or if you have your own idea for a cheat sheet that could help in Forex trading, please let us know using the commentary form below.

3 Responses to “Forex Candlestick Patterns Cheat Sheet”

  1. Xavier Lucas

    Thanks for sharing the cheat sheet.

    Reply

  2. fx

    Your chart is wrong. Bullish three line strike is BEARISH three line strike and the opposite for the bearish three line strike.
    Bearish threeline strike occurs after three black crows and a temporary reversal while engulfing the three previous candle bodies.

    Reply

    Andriy Moraru Reply:

    Thanks for your input! However, the problem with three line strike candle formations is that they work as the reversal patterns most of the time in practice (see Thomas Bulkowski’s extensive analysis). That is contrary to the theory that they are continuation patterns. But calling a pattern a ‘bearish three line strike’ and then placing it under the Bullish patterns would be immensely confusing to any reader. That is why I decided to switch their names instead. That might be not an optimal solution due to possible confusion among experienced traders who know the traditional pattern names, but it seems to be an optimal solution in terms of candlestick pattern usage explanation.

    Reply

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