One-Line Patterns

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One-line patterns are very common patterns on the candlestick charts. Even analysts, who do not use candlestick patterns on a daily basis, very often know the names of patterns like Hanging Man, Hammer or One-Candle Shooting Star.

One-line patterns are the second most frequently appearing patterns just after the two-line patterns. On average, in case of daily charts, they occur every 10-30 days depending on the particular market.

Patterns from this group often are part of other multiline (i.e. bigger) patterns, forming one of their lines. If a one-line pattern in such situation is of the same forecast as the bigger pattern, they both create a prediction of higher probability to fulfill. If, however, two patterns have an opposite forecast, we have then so-called conflicting lines.

Occurrences of one-line patterns, although may be powerful, should be rather thoroughly analyzed and confirmed by subsequent market signals. Some market participants, especially these accepting higher risk, treat some one-line patterns (e.g. Hanging Man, Hammer, Takuri Line) as signals to enter into a position.

In some sources, we can read that patterns like Hanging Man, Hammer and Takuri Line do not have the second shadow, or that it is very short. At the same time in original Japanese sources, both shadows are clearly visible. In CandleScanner, to solve imprecise term "short shadow", the rule is adopted which says that a "short" shadow cannot be longer than the body.

There are ten one-line patterns in total, which can be divided as follows:

  • 4 bullish reversal patterns
  • 4 bearish reversal patterns
  • 1 bullish continuation pattern
  • 1 bearish continuation pattern
Figure 1. One-line patterns.

Figure 1. One-line patterns.

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