Candlestick charts explained
Posted in Bearish reversals
The bearish engulfing candlestick pattern is considered to be a bearish reversal pattern. It forms usually at the top of an uptrend. It consists of two candlesticks: the first is white and the second black. The size of the white one is not that important, but should not be a…
Posted in Bearish reversals
This five candle pattern develops in a continuous uptrend. The first three days of the ladder top pattern are three long white candlesticks. This section of the formation corresponds the three white soldiers candlestick pattern. The fourth day has a higher closing price. The long lower shadow shows that the…
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…