Candlestick charts explained
Posted in Bullish reversals, and Continuation patterns
The white opening marubozu is a single candlestick pattern with a long white body, an upper shadow and the lack of lower shadow. The day opens and prices rise above the opening price. Prices continue to move up all day thus forming the long white body. The closing price is…
Posted in Bullish reversals, and Continuation patterns
The white marubozu is a simple single candle pattern. As the name suggests it is white, showing that the stock price closed on a higher level than it started the day. It has a long body without any lower or upper shadows. The day opens and prices continue to move…
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 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 Bearish reversals
Black closing marubozu is a single candle pattern. It has a long black body and an upper shadow. There is no lower shadow, showing that the closing price and the lowest price are at the same level. The pattern shows that sellers controlled the trading day from open to close,…
Posted in Bearish reversals, and Continuation patterns
The black marubozu is a simple single candle pattern. As the name suggests it is black, showing that the stock price closed on a lower level than it started the day. It has a long body without any lower or upper shadows. The day opens and prices continue to move…
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…
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…