Candlestick charts explained
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…
Posted in Bullish reversals
Bullish homing pigeon is a two-line candlestick pattern that appears in a downtrend. Both of the elements are black candlesticks, the first one should be much larger than the second. Actually the latter should be completely engulfed by the body of the first candle. What happens if a bullish homing…
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 Bullish reversals
Bullish harami is one of the most common bullish candlestick chart patterns. The pattern consists of two candlesticks, in which the first day’s black candlestick engulfs the following day’s white candlestick. It appears in a downtrend and forecasts its reversal. Name and incidence In Japanese the name harami means pregnant.…
Posted in Bullish reversals
The bullish breakaway pattern consists of five candles. The first one is a long black candle that forms in a downtrend. The following three candles all continue in the same direction with lower closes. All the days in this pattern are black except for the third candle that can be…
Posted in Bullish reversals
Bullish belt hold is a single candlestick pattern, mostly a white opening marubozu that forms in a downtrend. The market gaps down and opens at its low, and closes near to the high of the day. There is just a small upper shadow. Confirming bullish belt hold Occurring after a…
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 Bullish reversals
The hammer is a common trading signal, made up of a single candlestick. It has a small body with a long lower shadow. The shadow is at least twice as long as the candlestick itself. There is very little or no upper shadow at all. The body may be black…
Posted in Bullish reversals
The bullish doji star is a double candlestick formation that is viewed as a bullish reversal pattern. It forms in a downtrend. The first candle is a long black candle, then a doji follows that gaps lower. Understanding the bullish doji star formation The first day is a long black…
Posted in Bullish reversals
The bullish engulfing is a two candle pattern, in which the black candle’s body of the first line is engulfed or covered by the white candle’s body of the second line. The first line can be any black basic candle, appearing both as a long or a short line. It…