Candlestick charts explained
Posted in Bullish reversals
The bullish engulfing is a two candle pattern, in which the black candle’s body of the first line is engulfed or covered by the white candle’s body of the second line. The first line can be any black basic candle, appearing both as a long or a short line. It…
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 black opening marubozu is a single candlestick pattern with a long black body, a lower shadow and the lack of upper shadow. The day opens and prices go below the opening price. Prices continue to move down all day thus forming the long black body. The closing price is…
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 Bullish reversals
Three white soldiers is a complex candlestick pattern made of three candle lines. On all the three days market opens at the low price of the day and closes at the high price of the day. It is bullish in nature and appears after the end of a down trend.…
Posted in Bullish reversals
The white closing marubozu is a single candlestick pattern characterized by a long white body with no upper shadow. This is an extremely strong bullish candlestick pattern. The day opens the prices then slightly fall, creating the lower shadow. Then stocks continue to go up all day, the highest price…
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…