Candlestick charts explained
Posted in Bullish reversals
The piercing line is a bullish trend reversal pattern with two candlesticks. It forms in a downtrend. A long black candlestick appears on the first day that is followed by a long white candle. The second candle opens lower with a gap but closes more than halfway into the body…
Posted in Bullish reversals
The bullish morning star pattern is a three candle bullish trend reversal sign. It consists of three different candles. Recognition criteria of bullish morning star A long black candlestick appears on the first day that continues the prevailing downtrend. On the second day a short candle forms (the colour is…
Posted in Bearish reversals
Black closing marubozu is a single candle pattern. It has a long black body and an upper shadow. There is no lower shadow, showing that the closing price and the lowest price are at the same level. The pattern shows that sellers controlled the trading day from open to close,…
Posted in Bullish reversals
The ladder bottom is a five-candle bullish reversal candlestick chart pattern that forms in a downtrend. On the first three days long black candles appear following each other in a descending line, like the three black crows pattern. The fourth day is an inverted hammer with short black body and long upper…
Posted in Bullish reversals
The inverted hammer is a single candle pattern that appears at the bottom of a downtrend. There is a long upper shadow, which should be at least twice the length of the real body. The longer the upper shadow, the higher the potential of a reversal occurring. The color of the…
Posted in Bullish reversals
The bullish unique three river bottom is a bullish reversal three-line pattern. It forms in a down trend and starts with a long black candlestick on the first day that often closes at a new low. The second day is also black; a smaller candle with a long lower shadow…
Posted in Bearish reversals, and Continuation patterns
The black marubozu is a simple single candle pattern. As the name suggests it is black, showing that the stock price closed on a lower level than it started the day. It has a long body without any lower or upper shadows. The day opens and prices continue to move…
Posted in Continuation patterns
The falling three methods pattern includes five candles; two long ones at the beginning and the end, and three shorter ones in between. There are more conditions to meet: On the first day one long black candle appears that is followed by three or more short ascending white candles. The three short candles…
Posted in Bullish reversals
Bullish harami cross is a bullish trend reversal sign. The pattern consists of a black body followed by a doji that is completely engulfed by the prior black body. This formation appears in a downtrend. What happens on the market when a bullish harami cross forms? On the first day…
Posted in Bullish reversals
Bullish kicking is a two candlestick reversal pattern. A downtrend prevails on the market. On the first day a black marubozu appears, that is followed by a white marubozu on the second day. The second day opens higher with a body gap. What happens on the market when a this…