Candlestick charts explained
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 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…