Candlestick charts explained
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 Bullish reversals
Bullish kicking is a two candlestick reversal pattern. A downtrend prevails on the market. On the first day a black marubozu appears, that is followed by a white marubozu on the second day. The second day opens higher with a body gap. What happens on the market when a this…
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…
Posted in Bullish reversals
The bullish breakaway pattern consists of five candles. The first one is a long black candle that forms in a downtrend. The following three candles all continue in the same direction with lower closes. All the days in this pattern are black except for the third candle that can be…
Posted in Continuation patterns
Bearish mat hold is a complex and rare bearish pattern that forms in a downtrend. It consists of five candlesticks. The first one is a long black candle, which is followed by three small bodied ones. These three candlesticks climb higher and higher but remain below the high of the…
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 Bearish reversals
Explaining the bearish kicking candlestick Bearish kicking is a two-candle reversal pattern. There are some criteria to identify this candlestick pattern. The first formation is a white candlestick, a marubozu. It is followed by a black candlestick, a black marubozu, which opens gapping lower than the previous day’s low. The decline…
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…