Showing Tag: "candlestick-pattern" (Show all posts)
RELIABILITY: HIGH · The first day is a White Marubuzo day · The second day is a Black Marubuzo day that gaps downward This pattern is a strong sign that the market is headed downward. With this indicator, the previous market direction is not as important as with other indicators.  Continue reading ...
How to identify it:
· Small real body at the lower end of the trading range · Upper shadow usually at least three times as long as the real body · No (or almost no) lower shadow The market gaps open above the previous day's close in an uptrend. It rallies to a new high then loses strength and closes near its low: a bearish change of momentum. Confirmation of the trend reversal would by an opening below ... Continue reading ...
RELIABILITY: HIGH How to identify it: · The first day is a long black day · The second, third, and fourth days have small real bodies and follow a brief uptrend pattern, but stay within the range of the first day · The fifth day is a long black day that closes below the close of the first day In a downtrend, a long black day occurs, following by three days of small real bodies that fall into a short uptrend. On the fifth day, the bears come in s... Continue reading ...
RELIABILITY: HIGH · First day is a long white day · Second day is a small day that gaps in the direction of the previous trend · the third day is a black day 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 generally shows an erosion of confidence in the current trend. Confirmation of the... Continue reading ...
RELIABILITY: HIGH · First day is 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 What it Means: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 generally shows an erosion of confidence in the current trend. Confirmation of the tre... Continue reading ...
RELIABILITY:LOW/MODERATE · Small real body at the upper end of the trading range · Lower shadow at least twice as long as the real body · No (or almost no) upper shadow What it Means: There is a sharp sell off after the market opens during an uptrend. However, by the end of the trading day, the market closes at or near its high for the day. This signifies the potential for further sell-offs. Since the certainty for a Hanging Man indicator is ... Continue reading ...
RELIABILITY:MODERATE · First day is a long white day · Second day is a doji that gaps in the direction of the previous trend · The shadows of the doji should not be long  Continue reading ...
· First day is a long white day · Second day is black with an open above the high of the previous day · Second day closes within but below the midpoint of the first day's body In an uptrend the market gaps open, but loses ground to fall below the midpoint of the previous day. The Dark Cloud Cover pattern suggests an opportunity for the shorts to capitalize on the next day's open: a warning sign to bullish inves... Continue reading ...
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 show... Continue reading ...
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 ...
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 ...
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 ...
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 ...
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 ...
· 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 ...
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 ...
PATTERN: Reversal
· First day is a long black day · Second day is a doji that gaps in the direction of the previous trend · The shadows of the doji should not be long In a downtrend, the market bolsters the bears 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 ha...
· First day is usually 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, gapping in the opposite direction, with no overlapping 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 definitely shows th... Continue reading ...
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