June 5, 2011
RELIABILITY: High · First day is usually a long white day · Second day is a doji that gaps in the direction of the previous trend · The third day is a black day, gapping in the opposite direction, with no overlapping shadows In an uptrend, the market builds strength on a long white day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario definitely shows an erosion of confidence in the current trend. Confirmation of the trend reversal is the black third day, which is given extra validation by the downward gap. 
Posted by tushar chatterjee. Posted In : Technical analysis
June 4, 2011
RELIABILITY :Moderate · A doji occurs on three consecutive trading days· The second doji gaps below the first and third In an long downtrend, the market shows signs of a rally as the real bodies have grown progressively smaller. The trend culminates with the bullish Tri Star, identifying that many bearish positions may be reversing.  Continue reading...
Posted by tushar chatterjee. Posted In : Technical analysis
June 4, 2011
RELIABILITY: High · The first day is a long white day · The second, third, and fourth days have small real bodies and follow a brief downtrend pattern, but stay within the range of the first day · The fifth day is a long white day that closes above the close of the first day In an uptrend, a long white day occurs, following by three days of small real bodies that fall into a short downtrend. On the fifth day, the bulls come in s... Continue reading...
Posted by tushar chatterjee. Posted In : Technical analysis
June 4, 2011
RELIABILITY:Moderate How to Identify it : · First day is a long black day · Second day is a white day with an open below previous days low · Second days close is within but above the midpoint of the first days body In a downtrend the market gaps open, but rallies strong to close above the previous days midpoint. This pattern suggests an opportunity for the bulls to enter the market and support the trend reversal. The Piercing Line pattern is the op... Continue reading...
Posted by tushar chatterjee. Posted In : Technical analysis
June 4, 2011
RELIABILITY: High How to identify it: · First day is a long black day · Second day is a small day that gaps in the direction of the previous trend · the third day is a white day In a downtrend, the market bolsters the bearish trend with a long black day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario generally shows the potential for a rally, as many positions have be... Continue reading...
Posted by tushar chatterjee. Posted In : Technical analysis
June 4, 2011
RELIABILITY : High · First day is a long black day · Second day is a doji that gaps in the direction of the previous trend · The third day is a white day What it Means :In a downtrend, the market bolsters the bearish trend with a long black day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario generally shows the potential for a rally, as many positions have be... Continue reading...
Posted by tushar chatterjee. Posted In : Technical analysis
June 4, 2011
· The first day is a Black Marubuzo day · The second day is a White Marubuzo day that gaps upward This pattern is a strong sign that the market is headed upward. With this indicator, the previous market direction is not as important as with other indicators  Continue reading...
Posted by tushar chatterjee. Posted In : Technical analysis
June 4, 2011
RELIABILITY: Low How to identify it:· A long black day occurs · The second day is a white day where the real body is completely engulfed by the After a long black day at the low end of a downtrend, a white candlestick opens higher than the previous day's close. The price is driven up, as many shorts are covered, which encourages further buy-ins. The Harami indicator should be confirmed with the next trading day's candlestick f... Continue reading...
Posted by tushar chatterjee. Posted In : Technical analysis
June 4, 2011
RELIABILITY: Low / Moderate How to Identify it :· Small real body at the lower end of the trading range · Upper shadow usually no more than twice as long as the real body · No (or almost no) lower shadow As the market opens below the close of the previous day, the bulls rally briefly, but not enough to close above the previous day's close. As this leaves shorts in a losing position, the Inverted Hammer presents the potential for an upcoming rally.... Continue reading...
Posted by tushar chatterjee. Posted In : Technical analysis
May 30, 2011
RELIABILITY:Moderate · A long black day occurs
What it Means:Occurring in a downtrend, the Engulfing depicts an opening at a new low, followed by a high buy-in that closes at or above the previous day's open. This signifies that the downtrend has lost momentum and the bulls may be gaining strength. The Engulfing indicator is also the first two days of the Three O... Continue reading...
Posted by tushar chatterjee. Posted In : Technical analysis
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