Candlestick charts explained
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 Bearish reversals
The dark cloud cover pattern consists of two candlesticks; the first is white and the second black. Both candlesticks should have large bodies and the shadows are usually small or don’t exist. The black candlestick must open above the previous close and close below the midpoint of the white candlestick’s…
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…
Posted in Bearish reversals
Bearish belt hold is a single bearish reversal pattern, appearing in an uptrend. In this pattern, the day opens at its high level, but then price falls and closes near its low, not necessarily at the lows of the day. The candle is a black opening marubozu. It has very…
Posted in Continuation patterns
In the bullish mat hold pattern the first candle is a long white candle, followed by three days in a slight downtrend. The fifth day then continues the first day’s growth, reaching a higher closing price than that of the first day. This pattern shows that the stock will continue…
Posted in Bearish reversals
Reading the three black crows pattern The three black crows pattern is a bearish reversal pattern that consists of three bearish candlesticks that are sinister and dark in color, this is reflected in the name. Crows are often referred to as mark of omen or something bad. So the three…
Posted in Bearish reversals
What is an evening doji star? A three-day bearish reversal pattern that is similar to the evening star. The uptrend continues with a large white body. The next day opens higher, trades in a small range, then it closes at its open (doji). The doji shows the uncertainty on the…
Posted in Bearish reversals
Explaining bearish abandoned baby This chart pattern equals to the bullish abandoned baby in all parameters, but has an opposite meaning. The bearish abandoned baby occurs at the end of increasing trends. Following a long white candlestick, the rate usually opens with a gap and a doji appears. On the…