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Rickshaw man candlestick pattern: Understanding the market trends


The Rickshaw Man is a unique candlestick pattern with identical starting and closing prices. The Rickshaw Man Candlestick Pattern was earlier identified by Steve Nison, a technical analyst, in 1991.

Nison described the details of the pattern in his book “Japanese Candlestick Charting Techniques.” It has a reversal pattern formed at the apex of an upward trend. 

This is usually termed the base of a downward trend in the market. A Rickshaw Man Candlestick Pattern is quite similar to the Long-Legged Doji, where the opening and closing prices fall at the centre of the shadows. 

Let us delve deeper and try to understand more about this candlestick pattern below.

Understanding a Rickshaw Man Candlestick Pattern

A candlestick pattern usually shows four different price points of stocks. These include the open, close, high, and low prices. 

The “real body” of a Rickshaw Man indicates the opening and closing price range. The lines are also called shadows or wicks that show the high and low values of the associated stock.

The Rickshaw Man candles usually occur when bulls and bears engage in competition in the stock market, which results in an indecisive price movement. 

The candlestick pattern of the rickshaw man reflects market indecision. This suggests that traders should complement it with other technical indicators for better analysis. So, interested stock enthusiasts should use it in combination with other technical indicators. Examples include price action analysis and chart patterns

Long wicks are produced in a Rickshaw Man Candlestick Pattern because there is a significant difference in the high and low prices. 

A Doji is also produced during this time when the opening and closing prices are almost identical. So, the chart displays the Rickshaw Man pattern in the form of a Doji body with a long candle. 

How does a rickshaw man candlestick pattern work?

The behaviour of the Rickshaw Man Candlestick Pattern usually amounts to indecision. It always behaves like the Doji patterns. The latter shows the indecision and state of equilibrium in the market. Similar opening and closing prices showcase the reason behind the inability of traders to make certain decisions. 

Expert traders cannot decide their move when they see the Rickshaw Man Pattern. They are even compelled to sit on the sidelines and wait for the process to happen.

The Rickshaw Man pattern further provides insights into market indecision. That is why traders seek supplementary confirmation before making any trading decisions. The factors to consider include: 

  • Volume Confirmation: There may be a slight increase in trading volume during the Rickshaw Man Pattern. This may often signal increased volatility and potential shifts in market sentiments.
  • Support and Resistance Levels: Identifying all the support and resistance levels can validate the pattern’s significance. It can also guide in setting some realistic price targets.
  • Trend Analysis: Integrating the Rickshaw Man Candlestick Pattern with broader trend analysis helps traders understand its working process. This enables them to decide whether the pattern is occurring within an established trend or signalling a potential reversal.

How to identify rickshaw man candlestick pattern?

It may take some time to identify a Rickshaw Man Pattern. This is because it does not follow the price trend that led to its formation. 

So, individuals and entities should keep a close eye on the following things to determine the Rickshaw Man Candlestick Pattern.

  • A single candle that has a small Doji-like figure should have long shadows on both sides of its real body.
  • A real body must be centred at the candlestick’s midpoint. 
  • A small real body must indicate that the difference between the opening and closing price range is lesser. 

Rickshaw man candlestick pattern benefits

Now that we know the meaning of a Rickshaw Man Candlestick Pattern let us look at some of its advantages as mentioned below:

  • The pattern may indicate the end of an uptrend and the beginning of a downturn. So, it gives an early warning of a possible trend reversal.
  • Traders can pair the Rickshaw Man Candlestick Pattern with other kinds of bear indicators. This will help interested traders get a high-probability trade setup.
  • It is quite easy to identify the Rickshaw Man pattern once anyone is well-versed in it. So, traders with less experience can also use it efficiently.

Are there any drawbacks of rickshaw man candlestick pattern?

The Rickshaw Man Candlestick Pattern has its fair share of drawbacks, as shown below:

  • The Rickshaw Man is known to be a bearish reversal pattern. So, traders should not rely only on this particular pattern while making decisions regarding the market. 
  • Sometimes, there are no clear Rickshaw Man patterns in the market. In such cases, it may be challenging to specifically identify this particular pattern.
  • The Rickshaw Man Pattern may provide misleading signals just like other technical analysis tools. It can also cause certain traders to make the wrong trades.


The Rickshaw Man Candlestick Pattern is one of the significant bearish indicators with identical opening and closing prices. It has three different candles: the first is long, and the second is small. Here, the latter usually gap over the first candle. Meanwhile, the third candle closes below the middle point of the first candle.

It is easy to identify this particular pattern and then find the trend direction. Yet, sometimes, it can also give false signals. Thus, traders should always use this particular pattern along with other technical indicators and support levels. To learn more and prosper on your financial journey, visit StockGro today!


Does the rickshaw man candlestick pattern indicate a bullish or a bearish pattern?

The rickshaw man pattern neither indicates a bullish nor a bearish pattern. It is a neutral pattern indicating that the market is undergoing a reversal or the trend is paused.

Is the rickshaw man candlestick pattern the same as a Doji pattern?

While both these patterns appear to be similar, they have some key differences. The rickshaw pattern has longer upper and lower shadows. This increased length indicates that there is some kind of price movement, but the opening and closing prices are quite similar.

Can I make decisions based on the rickshaw man candlestick pattern?

This pattern indicates indecision among the traders and, hence, is not a sufficient enough indicator to make a decision. Therefore, it is better to analyse other technical indicators before you decide to execute a trade.

How do I know if there is a rickshaw man candlestick pattern?

To identify a rickshaw pattern, first look at the body of the pattern and the shadow length. If the centre body is small, and the shadows on both sides of the body are long, you have got a rickshaw man pattern!

How do I benefit from the rickshaw man candlestick pattern?

Although the rickshaw man pattern is a neutral indicator, it could either indicate the beginning of an uptrend or act as a possible warning of a market downturn. Therefore, you can make decisions based on these early signs before it is too late!

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