Professional Documents
Culture Documents
IQ TRADER CANDLESTICK BOOK (English Edition)
IQ TRADER CANDLESTICK BOOK (English Edition)
TR
A
D
E
R
1
NOTE
This book is made for only educational purpose, the materials given
on this book have been given to you learn, if you are interested in
learning then read this book only, if you trade at the given labels, then
you must do your research and consult your financial advisor–
R
Trading in stock market without knowledge can put you in trouble, so
first learn and then come to stock market–
E
D @iq_trader_07
A
YOUTUBE LINK: - https://youtube.com/channel/UCP1-OyW0MKsAOdQRzQiklwg
TR
EMAIL:- devilarmy605@gmail.com
2
INDEX
(1)TYPES OF CANDLESTICKS
1. Hammer
R
2. Inverted hammer
3. Gravestone doji
4. Dragonfly doji
E
5. Spinning top
6. Morning star
D
7. Evening star
8. Shooting star
A
9. Hanging man
10. Bullish engulfing
11. Bearish engulfing
TR
3
25. Three outside up
26. Three outside down
27. Three inside up
28. Three inside down
29. Bullish marubozu
30. Bearish marubozu
R
(2)TYPES OF CHART PATTERNS
E
1. Double top
D
2. Double bottom
3. Triple top
A
4. Triple bottom
5. Bullish pennant
6. Bearish pennant
TR
7. Bullish flag
8. Bearish flag
9. Bullish rectangle
10. Bearish rectangle
11. Rising wedge
IQ
4
20. Rounding bottom
21. Diamond top
22. Diamond bottom
R
E
D
A
TR
IQ
5
HAMMER
R
E
D
A
A hammer candlestick pattern occurs when a security
trades significantly lower than its opening but then rallies
TR
6
INVERTED HAMMER
R
E
D
The inverted hammer candlestick pattern indicates a bullish
A
reversal or short-term downtrend reversal. An inverted hammer
occurs after a prolonged sell-off when prices are near their lows
TR
7
GRAVESTONE DOJI
R
E
D
A
A gravestone doji is a bearish pattern that suggests a
reversal followed by a downtrend in the price action. A
TR
8
DRAGONFLY DOJI
R
E
D
A
Dragonfly Doji is a candle pattern with no real body
and a long downward shadow, which is typical to it.
TR
9
SPINNING TOP
R
E
D
A
A spinning top is a candlestick pattern that has a short real
body that's vertically centered between long upper and lower
shadows. The candlestick pattern represents indecision
TR
10
MORNING STAR
R
E
D
A morning star is a three-candle pattern with the low point on the
A
second candle. However, the low point is only apparent after the
close of the third candle. A morning star is a three-candle pattern
with the low point on the second candle. However, the low point
TR
11
EVENING STAR
R
E
D
An evening star is a stock-price chart pattern used by
A
technical analysts to detect when a trend is about to
reverse. It is a bearish candlestick pattern consisting
TR
12
SHOOTING STAR
R
E
D
A shooting star candlestick pattern occurs when an
asset's market price is pushed up quite
A
significantly, but then rejected and closed near the
open price. It could be a possible signal of bearish
TR
13
HANGING MAN
R
E
D
A
A hanging man candlestick occurs during an uptrend
and warns that prices may start falling. The candle is
TR
14
BULLISH ENGULFING
R
E
D
A bullish engulfing pattern is a white candlestick
that closes higher than the previous day's
A
opening after opening lower than the previous
TR
day's close
IQ
15
BEARISH ENGULFING
R
E
D
The Bearish Engulfing pattern is a two-candlestick
A
pattern that consists of an up (white or green)
candlestick followed by a large down (black or red)
TR
16
TWEEZER BOTTOM
R
E
D
A
Tweezer bottom candlestick pattern occur when
the low of two candlesticks are almost or the same
TR
17
TWEEZER TOP
R
E
D
The tweezer top candlestick pattern is defined as a
A
bearish reversal pattern featuring two candlesticks. It
begins with a green candlestick, which appears on the
TR
18
BULLISH INSIDE BAR
R
E
D
An internal bar chart pattern is embedded inside
a large CANDLE, some call it the Mother Bar.
A
This is a pattern that forms after a major move in
the market and represents a period of
TR
19
BEARISH INSIDE BAR
R
E
D
An “inside bar” pattern is a two-bar price action
trading strategy in which the inside bar is smaller
A
and within the high to low range of the prior bar, i.e.
the high is lower than the previous bar's high, and
TR
20
BULLISH HARAMI
R
E
D
A bullish harami is a candlestick chart indicator used
A
for spotting reversals in a bear trend. It is generally
indicated by a small increase in price (signified by a
TR
21
BEARISH HARAMI
R
E
D
A
A bearish harami is a two bar Japanese candlestick
pattern that suggests prices may soon reverse to the
downside. The pattern consists of a long white candle
TR
22
THREE WHITE SOLDIERS
R
E
D
Three white soldiers is a bullish candlestick pattern that
A
is used to predict the reversal of the current downtrend in
a pricing chart. The pattern consists of three consecutive
TR
23
THREE BLACK CROWS
R
E
D
The Three Crows pattern is a bearish reversal
A
pattern that consists of three bearish
long-bodied candlesticks, It is a bearish reversal
TR
24
DARK CLOUD COVER
R
E
D
Dark Cloud Cover is a candlestick pattern that
shows a shift in momentum to the downside
A
following a price rise. The pattern is composed of a
bearish candle that opens above but then closes
TR
25
PIN BAR
R
E
D
A pin bar is a single-bar candlestick that is made
A
up of a small body and a long upper or lower
shadow. In most cases, the bar is formed between
TR
26
PIERCING BULLISH
R
E
D
The piercing line candlestick pattern is a bullish
A
candlestick pattern that forms after an extended
bearish trend. It can be used as an indicator to
TR
27
BULLISH KICKER
R
E
D
a bullish kicker pattern starts with a Red
A
(bearish) candlestick, which is then followed by
a Green (bullish) candlestick that opens above
TR
28
BEARISH KICKER
R
E
D
A bearish kicker is a candlestick pattern that
consists of two candles, and that’s believed to
A
signal a coming swing to the downside. A bearish
kicker can be formed in an uptrend or downtrend,
TR
29
THREE OUTSIDE UP
R
E
D
The three outside up is a bullish candlestick
A
pattern with the following characteristics: The
market is in a downtrend. The first candle is
TR
30
THREE OUTSIDE DOWN
R
E
D
The three outside down, meanwhile, is a
A
bearish candlestick pattern with the following
characteristics: The market is in an uptrend.
TR
31
THREE INSIDE UP
R
E
D
The three inside up pattern is a bullish reversal
A
pattern composed of a large down candle, a
smaller up candle contained within the prior
TR
32
THREE INSIDE DOWN
R
E
D
The three inside down pattern is a bearish reversal
A
pattern composed of a large up candle, a smaller down
candle contained within the prior candle, and then
TR
33
BULLISH MARUBOZU
R
E
D
bullish Marubozu candlestick pattern, the low
price equals the open price, and the high price
A
equals the close price. This type of Marubozu
candlestick pattern indicates that a specific
TR
34
BEARISH MARUBOZU
R
E
D
The bearish Marubozu candle signifies the
A
complete control of the sellers on the market. Such
is the level of the selling pressure that market
TR
35
DOUBLE TOP
R
E
D
A
A double top is an extremely bearish technical
reversal pattern that forms after an asset reaches a
TR
36
DOUBLE BOTTOM
R
E
D
A double bottom pattern is a classic technical
A
analysis charting formation showing a major change
in trend from a prior down move. The double bottom
TR
37
TRIPLE TOP
R
E
D
A
The triple top pattern occurs when the price of an
TR
38
TRIPLE BOTTOM
R
E
D
A triple bottom is a visual pattern that shows the
A
buyers (bulls) taking control of the price action from
the sellers (bears). A triple bottom is generally seen as
TR
39
BULLISH PENNANT
R
E
D
A
A bullish pennant is a technical trading pattern that
TR
40
BEARISH PENNANT
R
E
D
A
A bearish pennant is a technical trading pattern that indicates the
impending continuation of a downward price move. They're
TR
41
BULLISH FLAG
R
E
D
A
Bullish flag formations are found in stocks with strong
uptrends and are considered good continuation patterns.
They are called bull flags because the pattern resembles a
TR
42
BEARISH FLAG
R
E
D
The bearish flag is a candlestick chart pattern that
A
signals the extension of the downtrend once the
temporary pause is finished. As a continuation pattern,
TR
the bear flag helps sellers to push the price action further
lower
IQ
43
BULLISH RECTANGLE
R
E
D
The bullish rectangle is a continuation pattern
A
that develops during a strong uptrend.
Once the pattern is established, a break to the
TR
44
BEARISH RECTANGLE
R
E
D
The bearish rectangle is a continuation pattern
A
that occurs when a price pauses during a strong
downtrend and temporarily bounces between
TR
45
RISING WEDGE
R
E
D
The rising wedge chart pattern is a recognisable price move
A
that's formed when a market consolidates between two
converging support and resistance lines. To form a rising
TR
46
FALLING WEDGE
R
E
D
The falling wedge chart pattern is a
A
recognisable price move that is formed
when a market consolidates between two
TR
47
HEAD AND SHOULDER
R
E
D
A
The head and shoulders chart pattern is a popular and
easy-to-spot pattern in technical analysis that shows a
TR
48
INVERTED HEAD AND SHOULDER
R
E
D
The inverse head and shoulders chart is thought to predict a
A
bearish-to-bullish trend reversal and signals that a downward
trend is nearing its end. Investors consider it to be among
the most reliable trend reversal patterns
TR
IQ
49
SYMMETRICAL TRIANGLE
R
E
D
A symmetrical triangle is a chart pattern characterized
A
by two converging trend lines connecting a series of
sequential peaks and troughs. These trend lines
TR
50
BROADENING TRIANGLE
R
E
D
A
A Broadening Triangle is a relatively rare triangle pattern which
occurs when there is a lot of volatility in a security. It is formed
when the prices forge higher highs and lower lows consecutively.
TR
51
ASCENDING TRIANGLE
R
E
D
A
An ascending triangle is a chart pattern used in
technical analysis created by a horizontal and rising
TR
52
DESCENDING TRIANGLE
R
E
D
A descending triangle is a bearish chart pattern created by
A
drawing a trendline connecting a series of lower highs and
one connecting a series of lows. A price channel occurs
TR
53
CUP AND HANDLE
R
E
D
A
A cup and handle is a technical chart pattern that resembles
a cup and handle where the cup is in the shape of a "u" and
the handle has a slight downward drift. A cup and handle is
TR
54
ROUNDING BOTTOM
R
E
D
A rounding bottom is a chart pattern used in technical
A
analysis and is identified by a series of price movements that
graphically form the shape of a "U". Rounding bottoms are
TR
55
DIAMOND TOP
R
E
D
A diamond top formation is a chart pattern that can occur at
A
or near market tops and can signal a reversal of an uptrend.
A diamond top formation is so named because the trendlines
TR
56
DIAMOND BOTTOM
R
E
D
A diamond bottom is a bullish, trend reversal, chart pattern.
A diamond bottom is formed by two juxtaposed symmetrical
A
triangles, so forming a diamond. A diamond bottom has to be
preceded by a bearish trend. This pattern marks the
TR
57