Candlestick charts explained
Posted in Bearish reversals
Bearish doji star pattern is a trend reversal sign that consists of two elements. The first day is a long white candlestick, that is formed in an uptrend. The following day is a doji, with small shadows. The doji gaps up, the volume of trading is low. Characteristics The most…
Posted in Bearish reversals
Descending hawk is a bearish reversal pattern, which forms in an uptrend. On the first day a long white candle evolves in the direction of the trend. On the second day, again a white body appears. The body of the first day candle completely engulfs the second candle. Shadows are…
Posted in Bearish reversals
The bearish engulfing candlestick pattern is considered to be a bearish reversal pattern. It forms usually at the top of an uptrend. It consists of two candlesticks: the first is white and the second black. The size of the white one is not that important, but should not be a…
Posted in Bullish reversals
The bullish doji star is a double candlestick formation that is viewed as a bullish reversal pattern. It forms in a downtrend. The first candle is a long black candle, then a doji follows that gaps lower. Understanding the bullish doji star formation The first day is a long black…
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
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…