Candlestick charts explained
Posted in Bullish reversals
The ladder bottom is a five-candle bullish reversal candlestick chart pattern that forms in a downtrend. On the first three days long black candles appear following each other in a descending line, like the three black crows pattern. The fourth day is an inverted hammer with short black body and long upper…
Posted in Bullish reversals
The inverted hammer is a single candle pattern that appears at the bottom of a downtrend. There is a long upper shadow, which should be at least twice the length of the real body. The longer the upper shadow, the higher the potential of a reversal occurring. The color of the…
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 Bearish reversals
Hanging man is the name of a bearish trend reversal pattern, which forms at the top of an uptrend. The Japanese gave this name because it looks like a head with the feet dangling down. It is a single candlestick pattern that has a long lower shadow and a small…