The evening star pattern consists of three candlesticks. The first candle is bullish, the second candle is small and the third candle is a large bearish candle. The evening star candlestick pattern is considered as a bearish reversal pattern that usually occurs at the top of an uptrend. It is… Read More »Evening star pattern – Candlestick | Reversal Patterns
Morning star candlestick pattern formed after an obvious downtrend. It is consisting of three candlesticks that are interpreted as a bullish sign by technical analysts. Where the first candlestick is bearish, the second candle is small and the third candle is a bullish candlestick. Identify the Morning star pattern Strong… Read More »Morning star candlestick pattern | Reversal Patterns
What is a candlestick? A Candlestick is used in technical analysis that shows the low, high, open, and closing prices of a stock for a specific period (minute, hour, week, month, etc). It’s called a Japanese Candlestick and it was developed in the 18th century by Munehisa Homma, a Japanese rice… Read More »Candlestick | Basic Understanding and construction
The Harami Candlestick pattern is composed of a two-candle formation. It’s a Japanese candlestick pattern where the first candle is larger, with a Red or Green body and the second one is small inside a Red or Green candle. This pattern indicates a potential reversal or continuation of the market… Read More »Harami Candlestick pattern | Reversal Patterns
The dark cloud cover pattern is a combination of two candlesticks. Where the first day of the pattern is a long green candle at the top of the trend and the second day’s open is higher than the high of the previous. Red closes at least halfway down the previous… Read More »Dark cloud cover Pattern | Reversal Patterns
The Piercing Pattern candlestick is composed of a two-candle formation in a downtrend. Where the first candle will be the Red continuation of the downtrend. And second-day candle is formed by opening below the low of the previous day. It closes more than midway up the Red candle (previous candle),… Read More »Piercing line candlestick pattern (Kirikomi) | Reversal Patterns
Hammer candlestick is looked a small body with a shadow at least two times greater than the body. It’s called a Hammer candle if It is found at the bottom of a downtrend, this shows possibility that the stock bottom out and will start up move. If the color of… Read More »Hammer candlestick pattern | Reversal Patterns
The engulfing candle is a candle that completely engulfs the previous day’s candle. The previous candle and current candle color should be different. The Engulfing Pattern is a major reversal pattern and is formed after a downtrend or uptrend. There are 2 types of the engulfing candlestick. Bullish Engulfing Pattern… Read More »Engulfing Candle | Reversal Candlestick pattern
Doji Candle is created when the opening price and closing price are the same. It indicates the bulls and the bears are in a state of indecision. It can appear at both the top and bottom of trends. If a Doji candlestick appears at the top of a trend, Doji… Read More »DOJI Candle | Reversal candlestick patterns