Candlestick charts explained
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
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 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…
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.…
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.…
Posted in Bearish reversals
Bearish harami cross is a bearish trend reversal pattern. It has two elements: a large white candle on the first day that is followed by a doji. The first day candle completely engulfs the doji. The pattern forms in a prevailing uptrend and is even more significant than a regular…
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 Bearish reversals
The shooting star candlestick formation is regarded as a bearish reversal pattern that typically forms at the top of an uptrend. Preceding candlesticks must be white and should have a relative large real body. The second candlestick is the star with a short black or white body that gaps away…
Posted in Bearish reversals
Bearish harami is a two-line pattern. It consists of a white body and a small black body that is completely engulfed by the body of the first day. The pattern appears in an uptrend and forecasts its reversal. The first line can be any basic candle with a white body.…