There are literally hundreds of candlestick patterns that traders use to increase their trading performance. Best used with other technical analysis tools, here are the top 10 patterns that provide the most consistent results.

* The dark cloud cover: This 2 candlestick high probability formation is bearish. Generally the first candlestick is continuing the bull trend and the next candlestick will gap up and open appearing to continue the trend, but fail to make any bullish headway and close well below the open and well into the real body of the first candlestick.

* Doji: When the opening and closing price are essentially the same, the candlestick formed resembles a plus sign, cross, or inverted cross and is referred to as Doji. It represents indecision on the part of the market, and is interpreted by traders that a turning point is imminent.

* Engulfing Pattern: This is a two-day pattern where the first day’s body is smaller than the subsequent candlestick, and they are both of opposite colors. This pattern is considered bearish when it appears at the end of an uptrend and bullish when it occurs in a down trending market.

* Evening star pattern: The evening star is a 3 bar candlestick pattern. Initially the first candlestick is long and bullish resuming the bull trend. Second is a small candlestick that gaps up and fails after that to make much headway. The next day or session is a gap down and a bearish candlestick who’s close reaches well into that of the first candlestick in the pattern.

* The Hammer: This is a single candlestick. The hammer is always bullish It will indicate a continuation in a bull trend and a reversal in a bearish one. It just a small body and a long tail. The tail is imply the bears trying their best to push price down and failing by end of day to keep it there.

* Hanging Man: Identical to the Hammer, this candlestick pattern occurs during an uptrend, and signals a continuation of the price movement.

* The Harami: The is like a mirror image of the engulfing pattern. With the harami the first candlestick engulfs the second. So the second and last candlesticks open and close are within the real body of the first. Depending on the color of the candlestick it can be bullish or bearish but the bottom line is that it’s telling you the short term trend is reaching exhaustion.

* Morning star: This is a 3 bar candlestick pattern. Its a bullish reversal pattern and a very high probability one at that. The first candlestick will continue the bearish trend by closing well below the open. Next the second candlestick will gap down and close a bit higher than the open, but not much. Last the third and final candlestick in the pattern will gap up and rally to close well within the body of the first candlestick.

* Piercing line pattern: This pattern is a bullish reversal pattern with two candlestick in the formation. The first will continue the downtrend. The second candlestick will gap down appearing to continue the trend but will ultimately close higher than the open and well within the real body of candlestick #1.

* Shooting Star: The opposite of the Hammer, this is a one-day formation and occurs in an uptrend. Trading opens higher and trades much higher but prices end near the low. This pattern is viewed as a bearish reversal.

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