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Japanese Candlestick Patterns

April 5, 2009 (Last updated on May 3, 2016) by Andriy Moraru

Many traders ask me for the detailed descriptions of the Japanese candlestick patterns that are detected by the MT4 indicator Pattern Recognition Master. So, here is the list of the patterns that it can recognize with the corresponding chart pictures and signal descriptions:

Bearish patterns

Shooting StarShooting star. Can signal an end of the bullish trend. Should be confirmed by other patterns. The longer the shadow the stronger the signal.

 

Evening StarEvening star. Acts as a stronger trend reversal signal. Note that the shadows should be very short and the body of the middle candle should not be large as well.

 

Evening Doji StarEvening doji star. Almost the same as previous, but some traders consider it a stronger signal.

 

Dark Cloud PatternDark cloud pattern. The two-candle pattern is ending a bullish trend. Note the opening of the second candle — it should be above the first one’s close. The second candle should close below the 50% of first candle’s body. Both bodies should be long enough. It is a signal of moderate strength.

 

Bearish Engulfing PatternBearish engulfing pattern. This two-candle pattern appears at the end of an uptrend. The second candle (bearish) should open higher than the first candle’s high and should close above the first one’s low (completely engulf it). It is a moderately strong signal.

Bullish patterns

Bullish HammerBullish hammer. Can signal an end of a bearish trend. Should be confirmed by other patterns. The longer the shadow the stronger the signal.

 

Morning StarMorning star. Acts as a stronger trend reversal signal. Note that the shadows should be very short and the body of the middle candle should not be large as well.

 

Morning Doji StarMorning doji star. Almost the same as previous, but some traders consider it a stronger signal.

 

Piercing Line PatternPiercing line pattern. The two-candle pattern is ending a bearish trend. Note the opening of the second candle — it should be below the first one’s close. The second candle should close above the 50% of the first candle’s body. Both bodies should be long enough. It is a signal of moderate strength.

 

Bullish Engulfing PatternBullish engulfing pattern. This two-candle pattern appears at the end of a downtrend. The second candle (bullish) should open lower than the first candle’s low and should close above the first one’s high (completely engulf it). It is a moderately strong signal.

If you have never heard about Pattern Recognition Master before and do not want to detect these patterns on your own, then you can simply download this wonderful indicator.

16 Responses to “Japanese Candlestick Patterns”

  1. Forex Dervish

    Thanks for this. I Really like the Pattern Recognition Master. By the way, what’s the significance of the numbers after some of the abbreviations, for example for Shooting Star, SS 1, 2, 3 etc?
    Thanks, Dervish

    Reply

    Andrei Reply:

    Different types of patterns, depending on the relative length of the candle’s shadows.

    Reply

  2. Shibu Thomas

    Thanks for the PRM. Really cool and I am sure will make life more simpler.

    Reply

    admin Reply:

    Let me know if you find it helpful.

    Reply

  3. Fabricio

    Thank you was looking for a summary of the most useful candlesticks patterns, these are fantastic.

    Reply

    admin Reply:

    You are welcome.

    Reply

  4. joe

    is there any way to move or delete the bearish/bullish labels & the text that follows it?
    ex: SS 2,3,4-shooting star
    E_Star – evening star
    and all of the rest
    thank you for your help
    joe i

    Reply

    admin Reply:

    You can press Ctrl+B on your chart and delete any objects you don’t like.

    Reply

  5. Dave

    Can you set them as an ea to give you alert

    Reply

    admin Reply:

    You don’t have to set it as an EA in order to get alerts. You may change the indicator’s code, so that it will issue alerts.

    Reply

  6. Mary

    I don’t see any harami patterns, I read some where that they were some of the most used. What pattern(s) would be considered most similar.

    Reply

    Andriy Moraru Reply:

    Harami pattern requires the second bar to have open significantly below or above the previous close, which is nearly impossible in Forex (except for weekly candles).

    Reply

  7. Samuel

    May I know how can I delete all the description of the various patterns that are display on the top left corner ? It is blocking my other indicators.

    Thank you

    Reply

    Andriy Moraru Reply:

    Comment out or remove lines 109-120 in the source code and recompile.

    Reply

  8. tony

    have latest version

    Reply

    Andriy Moraru Reply:

    Hi Tony!

    The latest version is available for downloading here:
    https://www.earnforex.com/metatrader-indicators/Pattern-Recognition-Master/

    Please let me know if you have any problems launching it.

    Reply

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