Candlestick

In technical analysis, candlestick patterns are considered as a representation of the market structure. They give a clear picture of price movement and how bulls and bears interact at any given time. Three inside up and three inside down candlestick pattern is a three candle trend reversal pattern. Three inside up candlestick patterns indicates a potential trend reversal found … [Read more...] about Three Inside up/down candlesticks pattern

In technical analysis, candlestick patterns are a representation of the market structure. They tell us how bulls and bears interact with each other at any given time. Three outside up and three outside down is part of three-candle trend reversal patterns. As the name suggests, three candles in a specific sequence are needed to complete the pattern. Formation of three outside … [Read more...] about Three outside up/down candlestick pattern explained

Inside candle is the opposite of a bullish or bearish engulfing pattern. In this type of pattern, the first candle completely engulfed the second candle. In other words, an inside candlestick pattern is formed when the high and low of the current candlestick falls within the boundaries of the prior candlestick high and low. It indicates little price movement relative to the … [Read more...] about What is Inside Candle and how to trade

Bearish and bullish piercing candlestick patterns are considered as a signal for trend reversal. In a downtrend, a bullish piercing pattern (also called simply the Piercing Pattern) signals a trend reversal to the upside. Similarly, in an uptrend, a bearish piercing candlestick pattern signals a trend reversal to the downside. The Bearish piercing pattern is known as the … [Read more...] about Bullish Piercing Candlestick Pattern Explained

Dark cloud cover candlestick pattern is a bearish reversal pattern formed in an uptrend. Like a bearish engulfing candlestick pattern, Dark Cloud Cover is a two candlestick pattern where in the first one is a bullish candle continuing the existing upward trend, and then the second candle opens above the close of the prior up candle and closes below the midpoint of the 1st up … [Read more...] about Dark Cloud Cover – Bearish reversal candlestick pattern explained

Spinning Top candlestick patterns provide valuable supporting information to a trading strategy. It indicates uncertainty in the market. You may get a spinning top candlestick pattern within an uptrend, downtrend and/or consolidation signifying possible reversals. Spinning tops is a form of candlestick pattern that have similarly sized upper and lower wicks that are usually … [Read more...] about How to trade Spinning Top Candlestick Pattern

One of the most common technical tools used to track the movement of stocks or securities are the candlestick patterns. Shooting star, hammer, hanging man and inverted hammer candlestick patterns spotted after a sharp rally or decline, can be considered as the most important pattern for trend reversal.  These single candlestick patterns can help you a lot to spot a trend … [Read more...] about Shooting Star and Inverted Hammer Candlestick Pattern explained

Hammer candlestick pattern is a signal of reversal after a downtrend to indicate that the control might shift from seller to buyer. Perfect hammer is one which has a shadow twice the height of the body. This means, the real body of the candle is to be relatively small and the tail of the candle is to be much longer. The longer the tail the better. The term hammer refers to … [Read more...] about Hammer & Hanging Man candlestick pattern explained

In the stock market, we have three different types of market participants: the bulls, the bears and the undecided traders. Prices of a stock or any other financial securities traded online are the result of the actions of all these market participants at a particular point in time. To know price action trading, you are first required to understand market psychology. Market … [Read more...] about Price Action trading – How candlestick helps to read mass psychology

A wide variety of two candlestick patterns can signal the end of a downtrend or uptrend. Many traders are known for catching the reverse trend, trying to pick a top or bottom of a trending move. This article explains, what the bullish and bearish engulfing candlestick patterns are, how to recognise reversal in a trading environment that give rise to the pattern and when it has … [Read more...] about How to identify Bullish and Bearish Engulfing Candlestick Patterns