Candlestick charts explained
Posted in Blog
Engulfing means if a candle’s body is larger than the neighbouring candle’s, thus it “engulfs” the other candle. The classical examples are the bearish engulfing and the bullish engulfing candles. These occur when the current candle engulfs the previous one. It is ideal if the current candle’s body is bigger…
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 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 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…
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 Bearish reversals
Bearish harami cross is a bearish trend reversal pattern. It has two elements: a large white candle on the first day that is followed by a doji. The first day candle completely engulfs the doji. The pattern forms in a prevailing uptrend and is even more significant than a regular…
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 Bearish reversals
Bearish harami is a two-line pattern. It consists of a white body and a small black body that is completely engulfed by the body of the first day. The pattern appears in an uptrend and forecasts its reversal. The first line can be any basic candle with a white body.…
Posted in Bearish reversals
Descending hawk is a bearish reversal pattern, which forms in an uptrend. On the first day a long white candle evolves in the direction of the trend. On the second day, again a white body appears. The body of the first day candle completely engulfs the second candle. Shadows are…