Combination and complex candlestick patterns are formations that involve multiple candlesticks and provide more nuanced signals about market sentiment. Here are some different combination and complex candlestick patterns:
- Three White Soldiers:
This pattern consists of three consecutive long bullish candles with each candle opening within the previous candle’s body. It indicates a strong uptrend and suggests further bullish momentum. - Three Black Crows:
The three black crows pattern is the bearish counterpart of the three white soldiers. It consists of three consecutive long bearish candles with each candle opening within the previous candle’s body. It signals a strong downtrend and suggests further bearish pressure. - Morning Star:
The morning star pattern is a bullish reversal pattern that appears after a downtrend. It consists of three candles: a long bearish candle, a small bullish or bearish candle that gaps below the previous close, and a long bullish candle that closes above the midpoint of the first candle. It suggests a possible shift in the trend towards an upward direction. - Evening Star:
The evening star pattern is the bearish version of the morning star pattern. It appears after an uptrend and consists of three candles: a long bullish candle, a small bullish or bearish candle that gaps above the previous close, and a long bearish candle that closes below the midpoint of the first candle. It signals a potential trend reversal to the downside. - Harami Pattern:
The harami pattern is a two-candle pattern where the first candle has a large body, followed by a small-bodied candle that is completely engulfed by the first candle’s body. It can be bullish or bearish depending on the trend. A bullish harami suggests a potential reversal from a downtrend, while a bearish harami indicates a potential reversal from an uptrend. - Engulfing Pattern:
The engulfing pattern occurs when a small-bodied candle is completely engulfed by the subsequent large-bodied candle. A bullish engulfing pattern suggests a potential reversal from a downtrend, while a bearish engulfing pattern indicates a potential reversal from an uptrend. - Tweezer Tops and Bottoms:
Tweezer tops consist of two candles with equal or near-equal highs, followed by a bearish candle. Tweezer bottoms consist of two candles with equal or near-equal lows, followed by a bullish candle. These patterns indicate potential reversals in the respective trends.
These combination and complex candlestick patterns provide valuable insights into potential trend reversals and market sentiment. However, it’s essential to confirm these patterns with other technical indicators and analysis tools for more accurate decision-making.