Category: Candlestick Patterns
-
Bullish Engulfing Pattern
Bullish Engulfing Pattern The Bullish Engulfing Candlestick Pattern is a bearish reversal pattern, which usually occurs at the Bottom of a down trend and it consists of a a small bearish candlestick with a small tail followed by a reversal bullish candlestick that overshadows or “engulfs” the small bearish one. The opposite of the Bullish…
-
Bearish Engulfing Pattern
Bearish Engulfing Pattern The Bearish Engulfing Candlestick Pattern is a bearish reversal pattern, which usually occurs at the top of an up trend and it consists of a a small bullish candlestick with a small tail followed by a reversal candlestick that overshadows or "engulfs" the small bullish one. The opposite of the Bearish Engulfing…
-
Morning Star
Morning Star Japanese Candlestick Pattern The Morning Star Pattern usually occurs at the bottom of the downtrend and is a bullish reversal pattern. The pattern has three components: Day1) Large Bearish Day: A long black candlestick. Day2) A small Bullish or Bearish candlestick that gaps below the previous day’s close. This candlestick could also be…
-
Japanese Candlestick Basics
Japanese Candlestick Basics Candlesticks are the most basic form of chart reading. The Japanese started using candlesticks in the 17th Century. They are very simple to use but very rich in interpretation. Many Price Action Technical Analysts or traders use only candlesticks to trade, as indicators are latent to price movements. There are two types…
-
Gravestone Doji
Gravestone Doji On the other hand we have the Gravestone Doji, which is a strong bearish candlestick pattern that occurs at the top of bull trend, often near the highs. The Gravestone Doji, as a typical Doji has it’s opening and closing at close to the same price. Rarely these two prices are the same…
-
Doji Candlestick
Doji Candlestick A doji is a very strong candle it show a lot of indecision between the bulls and the bears. Often a Doji is sign of reversal but can also be sign of a continuation. Doji’s are normally found at the bottom of a downtrend. Doji refers to both singular and plural. The formation…
-
Hammer
Hammer Bullish Reversal Pattern What is a hammer? The hammer is a bullish reversal candlestick. Most bullish reversal patterns this pattern will -occur within a downtrend or at the bottom of a trend -Often it is followed by a confirmation candle. Be aware with bullish reversal candlesticks this is a warning sign of a possible…
-
Hanging Man
Hanging Man Bearish Reversal Pattern The hanging man is a bearish reversal candlestick. Most bearish reversal patterns this pattern will -occur within an uptrend or at the top of a trend -Often it is followed by a confirmation candle. Remember with bullish reversal candlesticks, these are warning sign of a possible change in trend, but…
-
Shooting Star
Shooting Star Bearish Reversal Pattern What is a Shooting Star? The shooting star is a bearish reversal candlestick. Most bearish reversal patterns this pattern will -occur within an uptrend or at the top of a trend -Often it is followed by a confirmation candle. Be aware with bullish reversal candlesticks this is a warning sign…