Candlestick charts explained
Bullish and bearish continuation candle patterns happen to strengthen the trend. They usually appear in the middle of an up- or a downtrend. Some of the candles are typically bullish continuation patterns, while others supposed to be only bearish. Therefore in case they appear in an opposite trend, they can not be considered as a sign of continuation.
Posted in Bullish reversals, and Continuation patterns
The white opening marubozu is a single candlestick pattern with a long white body, an upper shadow and the lack of lower shadow. The day opens and prices rise above the opening price. Prices continue to move up all day thus forming the long white body. The closing price is…
Posted in Bullish reversals, and Continuation patterns
The white marubozu is a simple single candle pattern. As the name suggests it is white, showing that the stock price closed on a higher 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 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…
The bullish separating lines is a two-line bullish continuation pattern. On the first day a long black candle is formed that is followed by a long white one. The two candles have the same opening price, however the stock price moves to different direction until the end of each day.…
Posted in Continuation patterns
Black spinning top is a single candlestick pattern with low reliability. Occasionally it behaves like a continuation pattern, other times it signals a trend reversal. This pattern has a small black body and long lower and upper shadows. The market moves higher and then sharply lower. The opening and closing…
Bearish separating lines pattern appears very scarcely on the candlestick charts. It is considered as a bearish continuation pattern. It is exactly opposite to bullish separating line. It’s a simple two candle pattern. The first candle is a long white one appearing in a downtrend. The second candle is black…
Posted in Continuation patterns
The rising three methods pattern consists of at least five candlesticks but may include more. It is a trend continuation pattern that forms in an uptrend. How does the rising three methods look like? A long white candle appears on the first day and it is followed by a descending…
Posted in Continuation patterns
Bearish mat hold is a complex and rare bearish pattern that forms in a downtrend. It consists of five candlesticks. The first one is a long black candle, which is followed by three small bodied ones. These three candlesticks climb higher and higher but remain below the high of the…
Posted in Continuation patterns
In the bullish mat hold pattern the first candle is a long white candle, followed by three days in a slight downtrend. The fifth day then continues the first day’s growth, reaching a higher closing price than that of the first day. This pattern shows that the stock will continue…