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 piercing line is a bullish trend reversal pattern with two candlesticks. It forms in a downtrend. A long black candlestick appears on the first day that is followed by a long white candle. The second candle opens lower with a gap but closes more than halfway into the body…
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 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.…
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…