Dumpling Top Candlestick Chart Pattern
A dumpling top occurs when small real body candlesticks slowly rise and then move in a neutral to downward direction. The dumpling top pattern is complete when there is a bearish candlestick that gaps down from the other candlesticks.
Fry Pan Bottom Candlestick Chart Pattern
The opposite of the dumpling top is the fry pan bottom pattern. The fry pan bottom occurs when small real body candlesticks slowly move downward and then move in a neutral to upward direction. The fry pan bottom pattern is complete when a bullish candlestick gaps up from the rest of the candlesticks.
Dumpling Top Chart Example
The chart above of Proctor & Gamble (PG) illustrates a dumpling top. Notice how the top in the chart above contains many small bodied candlesticks that are mainly neutral. This shows that neither bulls nor bears are completely in charge of this area of consolidation. Once a strong bearish candlestick gaps down (illustrated with two blue lines on the chart) away from the area of consolidation, the dumpling top pattern is confirmed and prices would be expected to go further downward, which in this example of Proctor & Gamble, the prices do fall downward.
Fry Pan Bottom Chart Example
The chart of Intel (INTC) shows an example of a fry pan bottom. Notice all the small bodied candlesticks in the area of consolidation after prices fell. A fry pan bottom was confirmed when a large bullish candlestick gapped up (illustrated using two blue lines on the chart) and away from the area of consolidation.
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- The Pattern Site. (2008). Bulkowski's Measure Rule. Retrieved June 1, 2012, from http://thepatternsite.com/measure.html