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Copyright 2014 by Jan de Wit – http://www.investment-guru.com
Hammer: bullish
pattern after significant
downtrend
Bullish Doji: indicates
a reversal, direction
still unknown. Wait for
next candle.
Piercing Line: the bull
candle opens lower
than the bear’s low,
closes above bear’s
middle.
Bullish engulfing lines:
strong bullish if after
strong downtrend.
Bigger than previous
bear.
Morning star: indicates
a possible reversal,
confirmed by bullish
candle
Long bearish candle:
price opens near the high
and closes near the low.
Hanging man: small candle
bodies and long shadow.
Can also be bullish
Dark Cloud Cover: more
significant if second candle’s
body is below centre of first one.
Bullish: uptrend
Bearish: downtrend
Copyright 2014 by Jan de Wit – http://www.investment-guru.com
Spinning tops: neutral
pattern. Distance between
open close is small.
Doji: no trend. Open and
close are the same.
Double doji: a big breakout
will follow shortly
Harami: bearish candle is smaller
than the bullish body. Bullish
momentum has decreased.
Long-legged Doji: open and
close are the same, big range
between high and low –
turning point coming.
Dragonfly Doji: open and
close are the same, low
significantly lower than open
– turning point coming.
Gravestone Doji: open and
close are the same, high
significantly higher than
open – turning point coming.
Stars: a reversal is indicated.
The second candle is in the
shadow of the first.
Neutral trends

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Japanese candlesticks-cheat-sheet

  • 1. Copyright 2014 by Jan de Wit – http://www.investment-guru.com Hammer: bullish pattern after significant downtrend Bullish Doji: indicates a reversal, direction still unknown. Wait for next candle. Piercing Line: the bull candle opens lower than the bear’s low, closes above bear’s middle. Bullish engulfing lines: strong bullish if after strong downtrend. Bigger than previous bear. Morning star: indicates a possible reversal, confirmed by bullish candle Long bearish candle: price opens near the high and closes near the low. Hanging man: small candle bodies and long shadow. Can also be bullish Dark Cloud Cover: more significant if second candle’s body is below centre of first one. Bullish: uptrend Bearish: downtrend
  • 2. Copyright 2014 by Jan de Wit – http://www.investment-guru.com Spinning tops: neutral pattern. Distance between open close is small. Doji: no trend. Open and close are the same. Double doji: a big breakout will follow shortly Harami: bearish candle is smaller than the bullish body. Bullish momentum has decreased. Long-legged Doji: open and close are the same, big range between high and low – turning point coming. Dragonfly Doji: open and close are the same, low significantly lower than open – turning point coming. Gravestone Doji: open and close are the same, high significantly higher than open – turning point coming. Stars: a reversal is indicated. The second candle is in the shadow of the first. Neutral trends