22 classic K-line patterns
K-line charts are important tools for technical analysis in financial markets.
With the same K-line combination, the market trend and potential reversals can be assessed.
Turning point. Below is a classification and significance of the 22 common K-line patterns:
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1. Single K-line patterns
1. Bullish candle
Large body, indicating strong buying pressure, market is bullish.
2. Bearish candle
Large body, indicating strong selling pressure, market is bearish.
3. Doji
Opening and closing prices are close, indicating balanced forces between bulls and bears, may reverse.
Is a reversal signal.
4. Hammer
Long lower shadow, small body, appears in a downtrend, may indicate reversal.
Bottom signal.
5. Inverted hammer
Long upper shadow, small body, appears in a downtrend, indicates reversal.
Resistance to rebound.
6. Shooting star
Long upper shadow, appears in an uptrend, may indicate a top signal.
Number.
7. Gravestone doji
Extremely long upper shadow, no body, indicating weakness in the uptrend, may reverse.
Bearish.
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2. Double K-line patterns
8. Pregnant line
The second K-line is completely wrapped by the first, indicating a divergence between bulls and bears.
Possible reversal.
9. Engulfing pattern
The second K-line completely engulfs the first, divided into bullish engulfing and bearish engulfing.
Bearish engulfing.
10. Dark cloud cover
First bullish candle, second bearish candle opens higher but closes lower than the previous.
A single bullish candle with half the body, reversal signal.
11. Piercing pattern
First candle is bearish, second is bullish opening lower but closing higher than the previous.
A single bearish candle with half the body, reversal signal.
12. Flat top/bottom
Two K-lines have the same high or low points, indicating a potential trend reversal.
Reversal.
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3. Three K-line patterns
13. Three rising soldiers
Three consecutive bullish candles indicate a strong bullish market.
14. Three consecutive bearish candles
Three consecutive bearish candles indicate a weak bearish market.
15. Red three soldiers
Three small bullish candles gradually rise, usually a bullish signal.
16. Black crow
Three small bearish candles gradually decline, usually a bearish signal.
17. Three inside pregnant lines
The first large K-line engulfs two small K-lines, reversal signal.
18. Three outside pregnant lines
Three K-lines gradually enlarge, indicating trend continuation.
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4. Special K-line patterns
19. Gap
No overlapping portion between two K-lines, indicating a strong trend.
20. Tower top/bottom
K-lines gradually shrink in an uptrend or downtrend, indicating potential reversal.
Reversal.
21. Bull trap
Rapid turn to decline after an uptrend, false long signal.
22. Bear trap
Rapid rebound after decline, false short signal.
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By observing K-line patterns, better market trend predictions can be made.
Trends need to be assessed with other technical indicators, not solely rely on K-line patterns.
Make decisions based on K-line patterns.