The Ultimate Guide to Dumpling Top Candlestick Patterns

Last updated: January 4, 2024

Dumpling Top Pattern

The dumpling top candlestick pattern is a series of candlesticks in a convex pattern occurring at price highs and ending with a gap down in stock price:

Chart

General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes dumpling top patterns with the following characteristics:

Typical characteristics

• A series of candles with a convex pattern, showing a gradual decline of new highs, followed by a stabilization of price and ultimately a gap down in price from a top

Other interpretations

• Similar to the Western rounded top pattern, except with the addition of the final gap down candle to conclude the pattern.

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!