Rickshaw Man Candlestick Pattern: Definition, Advantages and Drawbacks

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  • 19 Dec 2023
Rickshaw Man Candlestick Pattern: Definition, Advantages and Drawbacks

Key Highlights

  • The rickshaw man is a candlestick pattern that has nearly identical opening and closing prices. The real body is small, with long shadows on both sides.

  • The pattern indicates market indecision. It often forms at the top of an upward trend or the base of a downward trend.

  • The Rickshaw man pattern is easy to identify. So, less experienced traders can also use it.

  • However, it can be challenging to identify the pattern in unclear market conditions. At times, it also may give false signals.

The rickshaw man is a unique candlestick pattern that has almost identical starting and closing prices. In addition, it has lengthy shadows on the candlestick with more significant highs and lower lows. Technical analyst Steve Nison identified the rickshaw man candlestick pattern in the year 1991.

He described it in his book "Japanese Candlestick Charting Techniques." This reversal pattern forms at the apex of an upward trend or the base of a downward trend. It is quite similar to the Long-Legged Doji. In the long-legged doji pattern, opening and closing prices fall at the centre of the shadows.

A candlestick pattern shows four significant price points of stocks. These include the high, low, open, and close prices. The "real body" indicates the opening and closing price range. The lines known as shadows or wicks show the high and low values of the stock.

The rickshaw man candles occur when bulls and bears control the market for a stock within the same period. However, the exact point of time will differ. This leads to a long shadow on the candle. The candlestick pattern of the rickshaw man represents a state of indecision in a market. So, you should use it in combination with other technical indicators, price action analysis, or chart patterns. Only then can you properly determine the direction of a trend.

Long wicks are produced because there is a significant difference in the high and low prices. A doji is produced when the opening and closing prices are almost identical. So, the chart displays the rickshaw man pattern as a doji body with a long candle. The long-legged doji and the rickshaw man pattern may seem similar. Yet, they are two different patterns traders should identify separately to properly assess the market.

Finding a rickshaw man pattern takes time. Because it does not always follow the price trend that led to the formation of the pattern, you should keep a close eye on the following things to determine a rickshaw man candlestick pattern.

  1. A single candle along with a small Doji-like figure. It will have long shadows on both sides of the real body.
  2. A real body centred at the candlestick's midpoint
  3. A small real body which indicates that the difference between opening and closing price range is very less.

After the rickshaw man candlestick pattern meaning, let's now look at some of its advantages. The following are some of the major ones.

  • It may indicate the end of an uptrend and the possible beginning of a downturn. So, it can provide an early warning of a possible trend reversal.
  • Traders can pair the rickshaw man pattern with other bearish indicators. This will help them to get a high-probability trade setup.
  • It is quite easy to identify the pattern. So, even traders with less experience can use it.
  • The rickshaw man pattern is a bearish reversal pattern. So, you should not rely only on it while making decisions.

  • Sometimes, there are no clear patterns in the market. In such cases, it may be challenging to identify this pattern.

  • Just like other technical analysis tools, the rickshaw man pattern may provide misleading signals. It can also lead to making the wrong trades.

Here’s a table summarising the key benefits and drawbacks of the rickshaw man candlestick pattern.

Benefits Drawbacks
Indicates a possible trend reversalNot a reliable indicator
High probability trade setupHard to identify in all cases
Easy to identifyCan provide misleading signals


The rickshaw man candlestick pattern is a bearish indicator with identical opening and closing prices. It has three candles. The first candle is long. The second candle is small. It gaps over the first candle. The third one closes below the middle point of first candle.

Sometimes bulls and bears fight for control of market prices at various points within the same timeframe. This results in a broad range of prices, forming the rickshaw man pattern. It is easy to identify this pattern and find the trend direction. Yet, sometimes, it can give false signals. Thus, always use this pattern along with other technical indicators and support and resistance levels.

FAQs on Rickshaw Man Candlestick Pattern

The rickshaw man candlestick pattern is similar to a doji pattern. However, it has longer upper and lower shadows. This indicates that there is some price movement. Still, the opening and closing prices are quite close.

The Rickshaw Man is a neutral pattern. So, it indicates neither a strong bullish nor bearish sentiment. It indicates a reversal or pause in the prevailing trend.

Yes, investors can use the rickshaw man pattern for any type of asset, like stocks, forex, and commodities. It is a very flexible pattern which can spot indecision in various market segments.

Investors can check upcoming candlestick patterns or changes in trend directions to confirm the reversal indicated by rickshaw man patterns.

Yes, investors should consider the timeframe when using the rickshaw man pattern. The results usually vary for intraday, daily and weekly charts.

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