Candlestick charts explained
Posted in Bullish reversals
The morning doji star is a bullish reversal pattern that is very similar to the morning star. The difference lies in the middle candle that must be a doji. The pattern forms in a down trend; the first candle is a long black one. The next candle opens lower with…
Posted in Bullish reversals
The bullish morning star pattern is a three candle bullish trend reversal sign. It consists of three different candles. Recognition criteria of bullish morning star A long black candlestick appears on the first day that continues the prevailing downtrend. On the second day a short candle forms (the colour is…
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…
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.…
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 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 Bearish reversals
Bearish doji star pattern is a trend reversal sign that consists of two elements. The first day is a long white candlestick, that is formed in an uptrend. The following day is a doji, with small shadows. The doji gaps up, the volume of trading is low. Characteristics The most…
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 Bearish reversals
The bearish breakaway pattern consists of five candles. It is a reversal formation that occurs during an uptrend. The first candle in the formation is long and white. The second candle is also long; price opens higher creating a gap. The third candle can be both black and white, but…