Candlestick charts explained
Bullish reversal candlestick patterns typically appear at the end of an downtrend. They suggest that selling momentum has decreased and soon the trend will turn bullish. The reliability of bullish reversal formations – as always – depends very much on the timeframe and the instrument, however in an established uptrend, bullish reversal candles can safely predict the end of a bearish correction phase. These ‘end of correction signals’ tend to be pretty powerful.
Often the reversal signal precedes the reversal by several candles, therefore apply stoplosses carefully.
Posted in Bullish reversals
Three white soldiers is a complex candlestick pattern made of three candle lines. On all the three days market opens at the low price of the day and closes at the high price of the day. It is bullish in nature and appears after the end of a down trend.…
Posted in Bullish reversals
The white closing marubozu is a single candlestick pattern characterized by a long white body with no upper shadow. This is an extremely strong bullish candlestick pattern. The day opens the prices then slightly fall, creating the lower shadow. Then stocks continue to go up all day, the highest price…
Posted in Bearish reversals, and Bullish reversals
It is a Japanese candlestick pattern having a smaller body than wicks or shadows. It looks like a cross, inverted cross or a plus sign. The word doji refers to both the singular and plural form. A doji reflects hesitation on the market. Prices move above and below the opening…
Posted in Bullish reversals
Explaining bullish abandoned baby The bullish abandoned baby occurs at the end of descending trends. Following a long black candlestick, the rate usually opens with a gap and a doji appears. On the third day the rate starts with a gap again. Due to the constant upheaval during the day…