The purpose of the OLAPTrader application is to provide an unprecedented level of both quantitative and qualitative technical analysis of historical stock market data by using Online Analytical Processing (OLAP). We hope to reveal those indicators which have historically been the most accurate in predicting price movement. First, Dimensions of Time, Pattern, Indicator, Sector and others are used to form a multi-dimensional cube. After the cube is constructed, thousands of stocks, funds, and indices, and decades of price data form the foundation upon which Olap operates in order to pull historical performance metrics from the raw data. While many indicators have proven to be more predictive of future price movement, it has not heretofore been possible to quantitatively determine the exact percent price increase over time for multiple, disparate indicators which all tend to agree upon one thing: namely, this is a good time to buy or sell. The following Candlestick Patterns have been calculated for over 14,000 Stocks, ETF’s, and Indices from 1988-2008. This data currently resides in a SQL Server database but is also available in ascii format (a single .csv file). We believe this breadth of data can be very useful to investors and analysts. http://www.olaptrader.com
Below, you will first find a general overview and history of Japanese Candlesticks followed by Candlestick categories and detailed descriptions.
Japanese Candlesticks
The candlestick techniques we use today originated in the style of technical charting used by the Japanese for over 100 years before the West developed the bar and point-and-figure analysis systems. In the 1700s a Japanese man named Homma, a trader in the futures market, discovered that, although there was a link between price and the supply and demand of rice, the markets were strongly influenced by the emotions of the traders. He understood that when emotions played into the equation a vast difference between the value and the price of rice occurred. This difference between the value and the price is as applicable to stocks today as it was to rice in Japan centuries ago. The principles established by Homma are the basis for the candlestick chart analysis, which is used to measure market emotions towards a stock.
In the “Candlesticks” table, you will see columns such as “Shooting Star” and “Dark Cloud Cover”. The first is a simple 1 day Candlestick (Bar). The second one is a Candlestick pattern formed by a series of bars (One for each trading day). Here is an illustration:
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Shooting Star (Single day) |
Dark Cloud Cover Pattern (Multiple days) |
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A type of candlestick formation that results when a security's price, at some point during the day, advances well above the opening price but closes lower than the opening price.
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In candlestick charting, a pattern where a black candlestick follows a long white candlestick. It can be an indication of a future bearish trend.
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Common Candlestick Patterns
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Candlestick Patterns |
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Candlestick Pattern Categories
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strong bullish reversal |
moderate bullish reversal |
weak bullish reversal |
strong bearish reversal |
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Abandoned Baby Bottom |
Breakaway |
Bullish Belt Hold |
Abandoned Baby Bearish |
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Morning Doji Star |
Dragonfly Doji |
Gravestone Doji |
Dark Cloud Cover |
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Three Inside Up |
Engulfing |
Inverted Hammer |
Evening Doji Star |
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Three Outside Up |
Hammer |
Tweezers Bottom |
Evening Star |
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Three White Soldiers |
Ladder Bottom |
Island Bottom |
Three Inside Down |
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Bullish Engulfing Line |
Morning Star |
Bullish Counterattack Line |
Three Outside Down |
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Three Stars In The South |
White Harami |
Bearish Engulfing Line |
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Tri Star |
White Harami Cross |
Upside Gap Two Crows |
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Mat Hold |
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Three Gaps Down |
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moderate bearish reversal |
weak bearish reversal |
bullish continuation |
bearish continuation |
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Advance Block |
Bearish Belt Hold |
Rising Three Methods |
Falling Three Methods |
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Deliberation |
Black Harami |
Three Line Strike |
Downside Tasuki |
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Downside Tasuki |
Shooting Star |
Piercing Line |
Three Line Strike |
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Dragonfly Doji |
Black Harami Cross |
Bullish Separating Line |
Side By Side White Gapping Down |
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Engulfing |
Tweezers Top |
Side By Side White Gapping Up |
In-Neck |
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Meeting Lines |
Island Top |
Upside Tasuki |
On Neck |
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Tri Star |
Bearish Counterattack Line |
Thrusting |
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Gravestone Doji |
Three Gaps Up |
Bearish Separating Line |
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Hanging Man |
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Meeting Lines Non-Fx |
1. Abandoned Baby Bottom candlestick formation
This formation consists of three candlesticks. The middle candlestick is a doji which gaps down from both the first and third candlestick. It is a signal that a bottom has formed and a trend reversal may be at hand.
2. Abandoned Baby Top candlestick formation
This formation consists of three candlesticks. The middle candlestick is a doji which gaps up from both the first and third candlestick. It is a signal that a top has formed and a trend reversal may be at hand.
3. Advance Block candlestick formation
This formation consists of a series of three white candlesticks which show a weakening uptrend, and diminishing buying power. Each close is progressively higher while either the candlesticks' real body size decreases or the top shadows get longer.
4. Bearish Belt Hold Line candlestick formation
This is a long black candlestick that opens at its high. In an uptrend this would be considered a bearish indicator. This formation is also called a black opening shaven head.
5. Bullish Belt Hold Line candlestick formation
This is a long white candlestick that opens at its low. In an downtrend this would be considered a bullish indicator.
6. Body Gap Down candlestick formation
In Japanese Candlestick terms, a body gap down occurs when the real body of the current candlestick gaps down from the previous real body. The highs and lows of the bar are not important, only the body itself. This differs from a western gap down.
7. Body Gap Up candlestick formation
In Japanese Candlestick terms, a body gap up occurs when the real body of the current candlestick gaps up from the previous real body. The highs and lows of the bar are not important, only the body itself. This differs from a western gap up.
8. Candlestick Body Midpoint
The Body Midpoint of a candlestick is the midpoint of the real body, that is, halfway between the open and the close
9. Bearish Counter Attack Line candlestick formation
This formation consists of two candlesticks. The first candlestick is white, the second black. The second candlestick opens sharply higher but closes unchanged from the prior session. When this occurs, it indicates that buyers and sellers are at a standoff.
10. Bullish Counter Attack Bull Line candlestick formation
This formation consists of two candlesticks. The first candlestick is black, the second white. The second candlestick opens sharply lower but closes unchanged from the prior session. When this occurs, it indicates that buyers and sellers are at a standoff.
11. Dark Cloud Cover candlestick formation
This formation consists of two candlesticks. The first candlestick is long and white the second is long and black. The black candlestick opens above the high of the white candlestick but then closes below the midpoint of the white candlestick’s real body. When is formation occurs in an uptrend it is a bearish sign indicating a reversal may be ready to take place.
12. Bearish Engulfing Line candlestick formation
This formation consists of two candlesticks. The first candlestick is white the second is black. The second candlestick's open is higher than the first but then closes below the first's open. The real body of the second candlestick engulfs that of the first. This indicates the bulls tried to force the market higher but failed.
13. Bullish Engulfing Line candlestick formation
This formation consists of two candlesticks. The first candlestick is black the second is white. The second candlestick's open is lower than the first but then closes higher than the first's open. The real body of the second candlestick engulfs that of the first. This indicates the bears tried to forced the market lower but failed.
14. Evening Doji Star candlestick formation
This formation consists of three candlesticks. The first is a long white candlestick, the second is a Doji and the third is a small black candlestick. The Doji gaps above both the white and black candlestick. The black candlestick opens higher than the close of the white one but closes below the midpoint of the white candlestick. When this formation occurs it is a sign of a major top reversal.
15. Evening Star candlestick formation
This formation is similar to the Evening Doji Star except that the middle candlestick is a small real body instead of a Doji. When this formation occurs it is a sign of a major top reversal.
16. Falling Three Method candlestick formation
This formation consists of five candlesticks. The first candlestick is long and black, it is followed by three small white bodies each of which closes higher than the prior one. All of the small white bodies hold within the range of the first black candlestick. The final candlestick is a long black body that closes at a new low. In a downtrend this a bearish continuation pattern showing that the bulls tried to stop the downtrend but were unsuccessful.
17. Gravestone Doji candlestick formation
This candlestick is a Doji in which the open and the close are at the low. This candlestick could signal a possible reversal at market tops
18. Hammer candlestick formation
The hammer is a candlestick that is made of a small black body with a very long lower shadow. The open is at or near the high. In a downtrend market this is a bottoming signal.
19. HangingMan candlestick formation
The hanging man is a candlestick that is made of a small white body with a very long lower shadow. The close is at or near the high. In a uptrend market this indicates a potential market top.
20. Black Harami candlestick formation
This formation consists of two candlesticks. The first is a long black body, the second is a short white body. The white candlestick's range is within the range of the black candlestick. This indicates the current trend is coming to an end a period of standoff between bulls and bears is taking place.
21. Black Harami Cross candlestick formation
This formation is similar to the HaramiBlack except that the second candlestick is a Doji.
22. White Harami Cross candlestick formation
This formation is similar to the HaramiWhite except that the second candlestick is a Doji.
23. White Harami candlestick formation
This formation consists of two candlesticks. The first is a long white body, the second is a short black body. The black candlestick's range is within the range of the white candlestick. This indicates the current trend is coming to an end a period of standoff between bulls and bears is taking place.
24. High Wave candlestick formation
This candlestick consists of a small, white or black real body and a long upper or lower shadow.
25. InNeck line candlestick formation
This candlestick formation consists of two candles. The first is long and black the second is a short white real body. The close of the white candlestick is above the low of the black one. This pattern appears in downtrends. The white candlestick represents a brief pause where the bulls have stopped the downward trend but once the white candlestick low is broken the downtrend should resume.
26. Inverted Hammer candlestick formation
This candlestick has a very small real body with a very long top shadow. There is little or no bottom shadow. When appearing after a long downtrend this candlestick indicates a possible trend reversal.
27. Long Legged Doji candlestick formation
This candlestick is a Doji with a long upper and lower shadow. It can be a sign of a market reversal.
28. MatHold Pattern candlestick formation
This pattern consists of five candlesticks. The first is a long white real body followed by three small black bodies, and then a small white body. The first black candlestick gaps up from the first white candlestick. The three black bodies each close progressively lower. The last white candlestick gaps up from the black series.
29. Morning Doji Star candlestick formation
This formation is the same as the MorningStar except a Doji appears instead of a small white body.
30. Morning Star candlestick formation
This formation consists of three candlesticks. A long black body, a small white body that gaps down from the black body and finally a white candlestick which closes below the midpoint of the black candlestick.
31. Piercing Line candlestick formation
This formation consists of two candlesticks. The first is black the second white. The white candlestick body opens lower than the black body close, but closes above the midpoint of the black body. This is a bullish continuation pattern
32. Rising Three Method candlestick formation
This formation consists of five candlesticks. The first candlestick is long and white, it is followed by three small black bodies each of which closes lower than the prior one. All of the small black bodies hold within the range of the first white candlestick. The final candlestick is a long white body that closes at a new high. In an uptrend this a bullish continuation pattern showing that the bears tried to stop the uptrend but were unsuccessful.
33. Bearish Separating Line candlestick formation
This formation consists of two candlesticks. A white candlestick is followed by a black candlestick. Both candlesticks have the same open. When this formation appears in a downtrend it is a signal that the downtrend should continue.
34. Bullish Separating Line candlestick formation
This formation consists of two candlesticks. A black candlestick is followed by a white candlestick. Both candlesticks have the same open. When this formation appears in an uptrend it is a signal that the uptrend should continue.
35. Shooting Star candlestick formation
This candlestick is a small body with a long upper shadow and little or no lower shadow. When this appears in an uptrend it is bearish signal.
36. Side by Side White Gapping down candlestick formation
This formation consists of two white candlesticks which are about the same size. The candlesticks both have the same open. If these candlesticks gap lower form a previous candlestick and the market is in an downtrend, this signals that the downtrend will continue.
37. Side by Side White Gapping up candlestick formation
This formation consists of two white candlesticks which are about the same size. The candlesticks both have the same open. If these candlesticks gap higher form a previous candlestick and the market is in an uptrend, this signals that the uptrend will continue.
38. Stalled Pattern candlestick formation
This formation consists of two candlesticks. The first is long white candlestick and the second is a small body. The second body is near the top of the long white candlestick body or above it. When this pattern is spotted during an uptrend, it usually signals stalling out of the uptrend.
39. Tasuki Downside Gap candlestick formation
This formation consists of three candlesticks. The first is a long black body, the second is a small black body and the third is a small white body. The middle small black body gaps down from the long black one. The small white body opens in the body of the small black one but then closes above the small black body. In a declining market this is a bearish continuation pattern.
40. Tasuki Upside Gap candlestick formation
This formation consists of three candlesticks. The first is a long white body, the second is a small white body and the third is a small black body. The middle small white body gaps up from the long white one. The small black body opens in the body of the small white one but then closes below the small black body. In an advancing market this is a bullish continuation pattern.
41. Three Gaps Down candlestick formation
This formation consists of three candlesticks, each gaps progressively lower. When formation appears in an downtrend it is a sign that selling power may be diminishing.
42. Three Gaps Up candlestick formation
This formation consists of three candlesticks, each gaps progressively higher. When formation appears in an uptrend it is a sign that buying power may be diminishing.
43. Three White Soldiers candlestick formation
This formation consists of three white candlesticks. Each of the candlesticks closes progressively higher. Also, the close of each is near the high. This formation signals a stable price pattern.
44. Thrusting Line candlestick formation
This formation consists of two candlesticks. The first one is black and the second is white. The white candlestick closes in the black candlestick's body. However, the white candlestick close below the midpoint of the black candlestick.
45. Upside Gap Two Crows candlestick formation
This formation consists of three candlesticks. The first is long and white, the second and third are small and black. The second small black body gaps up from the long white candlestick. The third body opens above the second open but then closes below the second's close. This is a top reversal formation in advancing markets.
46. Western Gap Down candlestick formation
A western gap down occurs when the current high is less than the previous low. This is the traditional definition of a gap down unlike the Japanese definition which only takes into account the body of the candlestick (relationship of open and close) and not the highs and lows.
47. Western Gap Up candlestick formation
A Western Gap Up occurs when the current low is greater than the previous high. This is the traditional definition of a gap up, unlike the Japanese definition which only takes into account the body of the candlestick (relationship of open and close) and not the highs and lows.
