​A bearish engulfing pattern develops in an uptrend when sellers outnumber buyers. This action is reflected by a long red (black) real body engulfing a small green (white) real body. The pattern indicates that sellers are now in control and that the price can decline further.

Market Reaction: This pattern typically signals a reversal to the downside after an uptrend.

Likelihood of Success: Around 79% of bearish engulfing patterns lead to a price drop within the next few periods.

​An evening star is a topping pattern. It is identified by the last candle in the pattern opening below the previous day's small real body. The small real body can be either black or white (red or green). The last candle closes deep into the real body of the candle two days prior. The pattern shows the stalling of the buyers and the sellers taking control. More selling can develop. The morning star is the bullish opposite of the evening star.

Market Reaction: Indicates a bearish reversal after an uptrend. It is considered a strong indicator of downward momentum.

Likelihood of Success: Studies show it has a 72% success rate in predicting market downturns.

A bearish harami cross occurs in an uptrend, where an up candle is followed by a doji—the session where the candlestick has a virtually equal open and close. The doji is within the real body of the prior session. The implications are the same as with the bearish harami.

Market Reaction: Suggests indecision and potential bearish reversal, but is generally weaker than other patterns.

Likelihood of Success: Historically, about 60-65% of the time, a bearish move follows a harami cross.

​A bearish harami is a small black or red real body completely inside the previous day's white or green real body. This is not so much a pattern to act on, but it could be one to watch. The pattern shows indecision on the part of the buyers. If the price continues higher afterward, all may still be well with the uptrend, but a down candle following this pattern indicates further weakness.

Market Reaction: Another bearish reversal signal, but it can also indicate indecision in the market.

Likelihood of Success: Bearish Harami patterns tend to lead to a downside around 53% of the time.

​An engulfing pattern on the bullish side takes place when buyers outpace sellers. This is reflected in the chart by a long white (green) real body engulfing a small black (red) real body. With bulls having established some control, the price can continue higher.

Market Reaction: A strong bullish reversal pattern signaling that an uptrend may begin after a downtrend.

Likelihood of Success: Around 63-80% of bullish engulfing patterns are followed by price increases.

A bullish harami cross occurs in a downtrend, where a down candle is followed by a doji. The doji is within the real body of the prior session. The implications are the same as the bullish harami.

Market Reaction: Indicates potential bullish reversal after a downtrend.

Likelihood of Success: This pattern predicts upward movement in around 60-65% of cases.

The bullish harami is the opposite of the upside-down bearish harami. A downtrend is in play, and a small real body (green or white) occurs inside the large real body (red or black) of the previous day. This tells the technician that the trend is pausing. If it is followed by another up day, more upside could be forthcoming.

Market Reaction: A bullish reversal pattern indicating the potential for upward movement.

Likelihood of Success: Historically leads to an upward trend around 52-55% of the time.

The pattern starts with a strong down day. This is followed by three small real bodies that make upward progress but stay within the range of the first big down day. The pattern completes when the fifth day makes another large downward move with a breakdown below the first down day’s low. It shows that sellers are back in control and that the price could head lower.

Market Reaction: Indicates the continuation of a downtrend after a temporary pause or consolidation.

Likelihood of Success: This pattern has a 74% success rate in predicting continued downward trends.

This pattern starts out with what is called a "long white day." Then, on the second, third, and fourth trading sessions, small real bodies move the price lower, but they still stay within the price range of the long white day (day one in the pattern). The fifth and last day of the pattern is another long white day with a breakout above the first long white day’s high.

Market Reaction: Suggests a continuation of an uptrend after a brief period of consolidation.

Likelihood of Success: Generally has a 65-75% success rate in predicting continued upward trends.