42Fibonacci
Home

Learn Technical Analysis

Technical analysis reads what price and volume have already done, and it starts with the candle. Each candle records one session's open, high, low and close, and which side held control at the end. A candlestick pattern is a short run of candles that marks where that control may be changing.

A pattern is not a signal on its own. Traders read it against what surrounds it: moving averages, RSI, MACD, volume and the readings built on it (On-Balance Volume, the Accumulation/Distribution line, Volume Spread Analysis, volume profile and anchored VWAP), Fibonacci retracements, ATR, trend channels, trading ranges, and multi-timeframe analysis (the weekly chart behind a daily setup).

Below are all 32 patterns the 42Fibonacci screener detects, the context guides that cover each indicator, cheat sheets for checking a chart quickly, and how to read a candlestick chart.

Candlestick Patterns

Every candlestick pattern the scanner detects, grouped by how many candles it takes.
32 patterns

One candle10

Hammer

Long wick, full reclaim

Takuri Line

A long tail, read twice

Inverted Hammer

Upper probe after a selloff

Dragonfly Doji

Deep low, closed at the high

Bullish Belt Hold

Opens at the low, never trades below

Doji

Open = close. A stalemate.

Long-Legged Doji

Wide range, flat close

Spinning Top

Small body, wicks both sides

High Wave

Small body, a huge range

Four-Price Doji

One price, almost no trading

Two candles11

Bullish Engulfing

One body fully engulfs the other

Tasuki Line

No lower open, then a takeover

Kicking

Two shaved candles, a gap between

Last Engulfing Bottom

A bearish shape, a bullish name

Harami

Small body inside a big move

Homing Pigeon

Red, but a higher close

Piercing Pattern

Gaps down, rallies past midpoint

Counterattack Lines

A big rally back to even

Tweezer Bottom

Same price, two sessions

Matching Low

Same close, not same low

Bullish Doji Star

A gapped doji, still unfinished

Three candles8

Three Inside Up

A harami, then a close above the first open

Three Outside Up

An engulfing, then a higher close

Morning Star

Three candles: down → pause → up

Unique Three-River Bottom

A new low, held the next day

Three White Soldiers

Three green closes in a row

Three Stars in the South

Read the lows, not the color

Bullish Abandoned Baby

A doji stranded by two gaps

Bullish Tri Star

Three doji, one failed push

Four or more3

Ladder Bottom

The first crack in a decline

Breakaway

The gap the decline left open

Concealing Baby Swallow

Four reds, ending on a new low

Context Guides

The context to read around every candle. Layer these on top of the basics.
17 guides

Trend & Moving Averages

You'll know: whether the setup has trend behind it

Momentum & RSI

You'll know: whether momentum is stretched

Momentum Shifts & MACD

You'll know: whether momentum is turning with the pattern

Volume & Participation

You'll know: which setups have real buying behind them

Structure & Fibonacci

You'll know: whether the setup sits at a level that matters

Volatility & ATR

You'll know: whether the stock has room to move

Timeframes & the Weekly Trend

You'll know: whether the setup goes with the bigger trend

Trend Channels

You'll know: where in the trend the pattern formed

Trading Ranges

You'll know: whether the setup sits at the edge of the box

Volume Flow & OBV

You'll know: whether volume is flowing in behind the candle

Accumulation/Distribution

You'll know: whether buying showed up in the closes before the candle

Volume Spread Analysis

You'll know: whether the selling at a low has been met

Volume Profile

You'll know: whether the setup sits at a price the market traded heavily

Anchored VWAP

You'll know: whether the buyers of the decline are back to break-even

Trend Strength & ADX

You'll know: whether the decline behind the candle is still strengthening

Bollinger Bands & the Squeeze

You'll know: how stretched the drop into the candle was

52-Week High & Low

You'll know: whether the setup formed at an edge of the stock's year

Cheat Sheets

Quick-reference cards for every pattern, plus the technical indicators.
6 topics

Formation

Anatomy of every pattern.

Confirmation

What turns a shape into a signal.

Invalidation

How to tell the setup has failed.

Psychology

Who controls the tape, candle by candle.

Stop Loss

Where to place your stop on every pattern.

Technical Indicators

What each indicator measures, in one line.

Candlestick Charts

How to read a candlestick chart, and how it compares with line, bar and Heikin-Ashi charts.
4 guides

Candlestick Basics

You'll know: how to read a single candle

Heikin-Ashi vs. Candlestick

You'll know: which chart type to use, and when

Bar Chart vs. Candlestick

You'll know: how bars and candles differ, and when to use each

Line Chart vs. Candlestick

You'll know: which to start with, and when to switch