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Candleformation

📊 Candlestick CheatsheetCandlestick charts are commonly used in trading to analyze market trends and make trading decisions. Candlesticks can be categorized as bullish or bearish, depending on whether the price has increased or decreased over a given period. It is important to note that while candlestick patterns can be useful in predicting market movements, they should not be used in isolation, and other indicators and analysis should also be considered. It is also important to have a clear understanding of the market and its underlying fundamentals before making any trading decisions. 🔹 Rails The rails pattern is a two-candlestick pattern that typically occurs during a downtrend. The first candle is a long red candle, followed by a long green candle that opens below the previous day's close but closes above it, creating a rail-like pattern. 🔹 Three White Soldiers The three white soldiers pattern is a bullish pattern that consists of three consecutive long green candles with small or no wicks. It typically occurs after a downtrend and suggests a reversal in the market's direction. 🔹 Three Black Crows The three black crows pattern is a bearish pattern that consists of three consecutive long red candles with small or no wicks. It typically occurs after an uptrend and suggests a reversal in the market's direction. 🔹 Mat Hold The mat hold pattern is a five-candlestick pattern that occurs during a bullish trend. It consists of a long green candle, followed by three small candles with lower highs and higher lows, and ending with another long green candle. 🔹 Pinbar The pinbar pattern is a single candlestick pattern that has a long tail or wick and a small body. The tail should be at least two times the length of the body. The pattern suggests a reversal in the market's direction. 🔹 Engulfing The engulfing pattern is a two-candlestick pattern that occurs when the second candle's body completely engulfs the previous candle's body. A bullish engulfing pattern occurs during a downtrend and suggests a reversal in the market's direction, while a bearish engulfing pattern occurs during an uptrend and suggests a reversal in the market's direction. 🔹 Morning Star The morning star pattern is a three-candlestick pattern that typically occurs after a downtrend. It consists of a long red candle, a small candle, and a long green candle, with the small candle gapping down from the previous day's close. The pattern suggests a reversal in the market's direction. 🔹 Evening Star The evening star pattern is the opposite of the morning star pattern and typically occurs after an uptrend. It consists of a long green candle, a small candle, and a long red candle, with the small candle gapping up from the previous day's close. The pattern suggests a reversal in the market's direction. 👤 @algobuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
5
Reversal candlestick patterns in crypto you only needHello, everyone! While Bitcoin is playing out our long signal it’s time for educational content. Today I wanna show you the candlestick formations which predict the reversals in crypto. I know that in the books we can find more formations with different names, but in practice only these patterns does matter in reversals. All these formations play out with the best performance on the 4h+ timeframes. Bullish Formations 1. This is the strongest bullish formation. When we observe the downtrend and the bullish hammer candle with the increased volume appears at the end, it is almost 100% sign of reversal, the huge bounce or the new uptrend is anticipated when you see this pattern. 2. This formation does not mean that the downtrend is finished, but the big bounce can be anticipated. 3. This formation is the weakest. If it appeared we can wait just for the local bounce. Bearish Formations 4. The strongest bearish formation which appears at the uptrend end with the increased volume at the bearish hammer candle. 5. The big correction can be anticipated if you see this formation but not the new downtrend. 6. Local correction can play out in case of this bearish formation. Please, remember that the candlestick formation without conformation can’t be the long or short signal. Exception are 1 and 4 formations. For other patterns we have to see the divergence to confirm the trend reverse. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
CME_MINI:ES1!Education
by Skyrexio
3
Candlestick Chart Part 2 : ReversalsHello everyone, as we all know the market action discounts everything :) _________________________________Make sure to Like and Follow if you like the idea_________________________________ Today's video will be about the Candlestick Chart : Reversal Patterns. So lets start by talking about the different types of Patterns : Bullish Reversal Patterns Bearish Reversal Patterns And they are divided into 3 groups : Weak Patterns Reliable Patterns Strong Patterns We Start with the Weak Reversals : 1) Dragonfly Pattern : A dragonfly doji candlestick is a candlestick pattern with the open, close, and high prices of an asset at the same level. A dragonfly doji pattern does not appear constantly. It is used as a technical indicator that signals a potential reversal of the asset’s price. 2) Hammer & Hanging Man Patterns : The Hammer is a bullish reversal pattern that forms during a downtrend. It is named because the market is hammering out a bottom. When the price is falling, hammers signal that the bottom is near and the price will start rising again. The long lower shadow indicates that sellers pushed prices lower, but buyers were able to overcome this selling pressure and closed near the open. The Hanging Man is a bearish reversal pattern that can also mark a top or strong resistance level. When the price is rising, the formation of a Hanging Man indicates that sellers are beginning to outnumber buyers. The long lower shadow shows that sellers pushed prices lower during the session. Buyers were able to push the price back up some but only near the open. 3) Inverted Hammer & Shooting Star Patterns : The Inverted Hammer occurs when the price has been falling suggests the possibility of a reversal. Its long upper shadow shows that buyers tried to bid the price higher. However, sellers saw what the buyers were doing, said "No!" and attempted to push the price back down. The Shooting Star is a bearish reversal pattern that looks identical to the inverted hammer but occurs when the price has been rising. Its shape indicates that the price opened at its low, rallied, but pulled back to the bottom. 4) Dark Cloud Pattern : A 2-candle pattern. The first candle is bullish and has a long body. The second candlestick should open significantly above the first one’s closing level and close below 50% of the first candlestick’s body. The sell signal is moderately strong. 5) Piercing Pattern : A 2-candle pattern. The first candlestick is long and bearish. The second candlestick opens with a gap down, below the closing level of the first one. It’s a big bullish candlestick, which closes above the 50% of the first candle’s body. Both bodies should be long enough. 6) Upside Gap Three Method : The upside gap three methods candlestick pattern is a bearish continuation pattern that only occurs during an uptrend. It consists of three candles. The first two candles are long and white in the direction of the prevailing trend. The second black candle creates an upside gap. The third candle fills the gap between the first and the second candle. 7) Downside Gap Three Method : The downside gap three methods candlestick pattern appears during a downtrend and consists of three candles. The first two candles have a gap down between them while the third candle covers the gap between the first two. The gap between the first two candles simply gets filled. 8) Bearish Harami Pattern : A 2-candle pattern. The body of the second candle is completely contained within the body of the first one and has the opposite color. 9) Bullish Herami Pattern : A 2-candle pattern. The body of the second candle is completely contained within the body of the first one and has the opposite color. Now Lets Talk about the Reliable Reversals : 1) Bullish Engulfing Pattern : A 2-candle pattern appears at the end of the downtrend. The first candlestick is bearish. The second candle should open below the low of the first candlestick low and close above its high. 2) Bearish Engulfing Pattern : A 2-candle pattern. The first candlestick is bullish. The second candlestick is bearish and should open above the first candlestick’s high and close below its low. 3) Tower Top Pattern : The tower top is a reversal pattern that occurs at high price levels. Typically one or more long bullish candlesticks are followed by a few smaller real body candlesticks and then the pattern is completed with one or more large bearish candlesticks. 4) Tower Bottom Pattern : The tower bottom is a reversal pattern that occurs at low price levels. There is one or more long bearish candlesticks followed by a few smaller body candlesticks and then concluded with one or more large bullish candlesticks. 5) Bullish Abandoned Baby Pattern : The bullish abandoned baby is a pattern that appears at the end of a downtrend and signals reversal to an uptrend. Simply put, it signals an end of the selling pressure of the bears and return of the bulls in the market. This pattern consists of three candlesticks: the first candle has a black (or red) big body, the second is a small and bearish candle – or a Doji, and the third is white (or green) candle. 6) Bearish Abandoned Baby Pattern : The bearish abandoned baby is a reversal pattern that forms during an uptrend. It is characterized by three candles, where the first candle is long bodied and white/green. The second candle is a Doji that gaps above the close of the first bar in the series. The third candle opens below the close of the second bar and is long bodied and black/red. 7) Dumpling Top Pattern : A dumpling top occurs when small real body candlesticks slowly rise and then move in a neutral to downward direction. The dumpling top pattern is complete when there is a bearish candlestick that gaps down from the other candlesticks. 8) Fry Pan Bottom Pattern : The opposite of the dumpling top is the fry pan bottom pattern. The fry pan bottom occurs when small real body candlesticks slowly move downward and then move in a neutral to upward direction. The fry pan bottom pattern is complete when a bullish candlestick gaps up from the rest of the candlesticks. 9) Bullish Belt Hold Pattern : A bullish belt hold shows up in downtrends. The pattern can be recognized by one long, full-bodied candlestick that is bullish and opens at a new recent low. The bullish belt hold candle is expected to have a flat or nearly flat bottom. The top has a small shadow, relative to the length of the body. 10) Bearish Belt Hold Pattern : The bearish belt hold is the complete opposite and it comes up in uptrends. To detect it, look for a long full-bodied, bearish candlestick that stands out at the top of an uptrend because it will get to a new recent high and it should be noticeably longer than the other candles. 11) Tweezer Top Pattern : The Tweezer Top pattern is a bearish reversal candlestick pattern that is formed at the end of an uptrend. It consists of two candlesticks, the first one being bullish and the second one being bearish candlestick. Both the tweezer candlestick make almost or the same high. 12) Tweezers Bottom Pattern : The Tweezer Bottom candlestick pattern is a bullish reversal candlestick pattern that is formed at the end of the downtrend. It consists of two candlesticks, the first one being bearish and the second one being bullish candlestick. Both the candlesticks make almost or the same low. And Last but not least The Strong Reversal Patterns : 1) Three White Soldiers Pattern : A 3-candle pattern. There’s a series of 3 bullish candles with long bodies. Each candle should open within the previous body, better above its middle. Each candle closes at a new high, near its maximum. The reliability of this pattern is very high, but still, a confirmation in the form of a white candlestick with a higher close or a gap-up is suggested. 2) Three Black Crows Pattern : A 3-candlestick pattern. There’s a series of 3 bearish candles with long bodies. Each candle opens within the body of the previous one, better below its middle. Each candle closes at a new low, near its minimum. The reliability of this pattern is very high, but still, a confirmation in the form of a bearish candlestick with a lower close or a gap-down is suggested. 3) Morning Star Pattern : A 3-candle pattern. After a long bearish candle, there’s a bearish gap down. The bears are in control, but they don’t achieve much. The second candle is quite small and its color is not important, although it’s better if it’s bullish. The third bullish candle opens with a gap up and fills the previous bearish gap. This candle is often longer than the first one. 4) Evening Star Pattern : A 3-candle pattern. After a long bullish candlestick, there’s a bullish gap up. The bulls are in control, but they don’t achieve much. The second candlestick is quite small and its color is not important. The third bearish candle opens with a gap down and fills the previous bullish gap. This candle is often longer than the first one. 5) Bullish Three Line Strike Pattern : A bullish three-line strike is made up of four candles. Of these, the first three are bullish, while the last is bearish. It is made up of three strong bullish candles that progressively end higher followed by a final strike candle. The strike candlestick is bearish and begins at or higher than the third candle but closes at least lower than the open of the first candle. 6) Bearish Three Line Strike Pattern : A bearish three-line strike is a four candle continuation pattern that comes up in a bearish trend. The first three candles are bearish, while the last candle is positive and ends above the highest close of the previous three candles. I Do wanna mention General Reversal Patterns : Three Mountains is the same as Triple Top Pattern Three Rivers is the same as Inverted Triple Top Pattern Buddha Top is the same as Head and Shoulders Pattern Inverted Buddha is the Same as Inverted Head and Shoulders Pattern I hope that I was able to help you understand Reversal Patterns in Candlestick Charts better and if you have any more questions don't hesitate to ask. Hit that like if you found this helpful and check out my other video about the Moving Average, Stochastic oscillator, The Dow Jones Theory, How To Trade Breakouts, The RSI , The MACD , The Bollinger Bands , The Different Types Of Trading Strategies, Candlestick Charts Part 1 links will be bellow
BITSTAMP:BTCUSDEducation
by GabiDahduh
4
Candlestick Charts Part 1 Hello everyone, as we all know the market action discounts everything :) _________________________________Make sure to Like and Follow if you like the idea_________________________________ A lot of people wanna start trading but they don't know where to start, So i decided to create a series of videos to help new traders understand the Market, Charts, and Patterns. Today's video will be about the Candlestick Chart and it's going to be Part 1 out of 3 Part 1 will be about the theory and structure of the Candlesticks and the different types of Candles. Part 2 will be about Candlesticks Reversal Patterns. Part 3 will be about Candlesticks Continuation Patterns. So let's start with talking about the candlestick chart in general: In the 1700s, a Japanese man named Homma discovered that, while there was a link between price and the supply and demand of rice, the markets were strongly influenced by the emotions of traders. Candlesticks show that emotion by visually representing the size of price moves with different colors. Traders use candlesticks to make trading decisions based on regularly occurring patterns that help forecast the short-term direction of the price. There are 3 different types of Candles : Bullish Candle Bearish Candle Doji 1) Bullish Candle A Bullish candlestick shows the market's open, high, low, and close price for the day. The candlestick has a wide part, which is called the "real body." Bullish means that the market is going up. This real body represents the price range between the open and close of that day. The Shadow or wick or tail represent the high and low of the market. 2) Bearish Candle A Bearish candlestick shows the market's open, high, low, and close price for the day. The candlestick has a wide part, which is called the "real body." Bearish means that the market is going down. This real body represents the price range between the open and close of that day. The Shadow or wick or tail represent the high and low of the market. 3) Doji The Doji has 5 Different types : Standard Doji A Standard Doji is a single candlestick that does not signify much on its own. To understand what this candlestick means, traders observe the prior price action building up to the Doji. Trades based on Doji candlestick patterns need to be taken into context. For example, a Standard Doji within an uptrend may prove to form part of a continuation of the existing uptrend. But it could be a reversal of an uptrend which shows the importance of confirmation post the occurrence of the Doji. Long-legged Doji The Long-Legged Doji simply has a greater extension of the vertical lines above and below the horizontal line. This indicates that during the timeframe of the candle price action dramatically moved up and down but closed at virtually the same level that it opened. This shows the indecision between the buyers and the sellers. Dragonfly Doji The Dragonfly Doji can appear at either the top of an uptrend or the bottom of a downtrend and signals the potential for a change in direction. There is no line above the horizontal bar which creates a ‘T’ shape and signifies that prices did not move above the opening price. A very extended lower wick on this Doji at the bottom of a bearish move is a very bullish signal. Gravestone Doji The Gravestone Doji is the opposite of the Dragonfly Doji. It appears when price action opens and closes at the lower end of the trading range. After the candle open, buyers were able to push the price up but by the close they were not able to sustain the bullish momentum. At the top of a move to the upside, this is a bearish signal. 4 Price Doji The 4 Price Doji is simply a horizontal line with no vertical line above or below the horizontal. This Doji pattern signifies the ultimate in indecision since the high, low, open and close (all four prices represented) by the candle are the same. The 4 Price Doji is a unique pattern signifying once again indecision or an extremely quiet market. I hope that I was able to help you understand The basics of The Candlestick Chart and if you have any more questions don't hesitate to ask. Hit that like if you found this helpful and check out my other video about the Moving Average, Stochastic oscillator, The Dow Jones Theory, How To Trade Breakouts, The RSI , The MACD , The Bollinger Bands and The Different Types Of Trading Strategies links will be bellow
BITSTAMP:BTCUSDEducation
by GabiDahduh
5
All candlestick patterns for Trading : Bullish reversal patternsHello everyone 😃 In this article we present Most useful bullish reversal patterns of candlesticks and How to trade with them. ( Sorry for my irregular chart 🤦‍♂️ I'm not good in drawing 😁 ) 📊 What is Candlestick charts ? Candlestick charts are a type of financial chart for tracking the movement of securities. They have their origins in the centuries-old Japanese rice trade and have made their way into modern day price charting. Some investors find them more visually appealing than the standard bar charts and the price actions easier to interpret. Candlesticks are so named because the rectangular shape and lines on either end resemble a candle with wicks. Each candlestick usually represents one day’s worth of price data about a stock. Over time, the candlesticks group into recognizable patterns that investors can use to make buying and selling decisions. 📍 Bullish reversal Candlestick Patterns : Over time, groups of daily candlesticks fall into recognizable patterns with descriptive names like three white soldiers, dark cloud cover, hammer, morning star, and abandoned baby, to name just a few. Patterns form over a period of one to four weeks and are a source of valuable insight into a stock’s future price action. Before we delve into individual bullish candlestick patterns, note the following two principles: 1- Bullish reversal patterns should form within a downtrend. Otherwise, it’s not a bullish pattern, but a continuation pattern. 2- Most bullish reversal patterns require bullish confirmation. In other words, they must be followed by an upside price move which can come as a long hollow candlestick or a gap up and be accompanied by high trading volume. This confirmation should be observed within three days of the pattern. 📌 The bullish reversal patterns can further be confirmed through other means of traditional technical analysis—like trend lines, momentum, oscillators, or volume indicators—to reaffirm buying pressure. There are a great many candlestick patterns that indicate an opportunity to buy. We will focus on five bullish candlestick patterns that give the strongest reversal signal. 🈺 Now let's talk about patterns that we provided on chart.. ! - Hammer : Hammers have a small real body and a long lower shadow. 📚 The hammer candlestick shows sellers came into the market during the period but by the close the selling had been absorbed and buyers had pushed the price back to near the open. - Inverted hammer : The Inverted Hammer formation is created when the open, low, and close are roughly the same price. Also, there is a long upper shadow which should be at least twice the length of the real body. 📚 The Inverted Hammer candlestick formation occurs mainly at the bottom of downtrends and can act as a warning of a potential bullish reversal pattern. - Dragonfly DOJI : The open, high, and close prices match each other, and the low of the period is significantly lower than the former three. This creates a "T" shape. 📚 A dragonfly DOJI after a price decline warns the price may rise. If the next candle rises that provides confirmation. - Bullish kicker : This pattern is characterized by a sharp reversal in price over the span of two candlesticks. 📚 Traders use kicker patterns to determine which group of market participants is in control of the direction. - Bullish spinning top : A spinning top is a candlestick pattern that has a short real body that's vertically centered between long upper and lower shadows. 📚 Spinning tops are a sign of indecision in the asset; the long upper and lower shadows indicate there wasn't a meaningful change in price between the open and close. - Bullish engulfing : This pattern appears in a downtrend and is a combination of one dark candle followed by a larger hollow candle. 📚 Bullish engulfing patterns are more likely to signal reversals when they are preceded by four or more black candlesticks. - Bullish harami : It is generally indicated by a small increase in price (signified by a white candle) that can be contained within the given equity's downward price movement (signified by black candles) from the past couple of days. 📚 A bullish harami is a candlestick chart indicator for reversal in a bear price movement. - Tweezers bottom : A tweezers bottom occurs when two candles, back to back, occur with very similar lows. 📚 Tweezers are more meaningful as part of other trends, especially pullbacks. - Morning star : A morning star is a visual pattern made up of a tall black candlestick, a smaller black or white candlestick with a short body and long wicks, and a third tall white candlestick. 📚 The middle candle of the morning star captures a moment of market indecision where the bears begin to give way to bulls. The third candle confirms the reversal and can mark a new uptrend. - Morning DOJI star : A Morning Doji Star consists of a long bearish candle, followed by a Doji that has gapped below it, then a third bearish candle that closes well within the body of the first candle and in doing so confirming the reversal. It is considered a strong bullish price reversal candlestick pattern. 📚 It is considered as a signal of a potential upcoming reversal of the current trend of the market. - Bullish abandoned baby : It forms in a downtrend and is composed of three price bars. The first is a large down candle, followed by a doji candle that gaps below the first candle. The next candle opens higher than the doji and moves aggressively to the upside. 📚 This pattern signals the potential end of a downtrend and the start of a price move higher. - Three white soldiers : The pattern consists of three consecutive long-bodied candlesticks that open within the previous candle's real body and a close that exceeds the previous candle's high. 📚 Three white soldiers are considered a reliable reversal pattern when confirmed by other technical indicators like the relative strength index (RSI). 📌 These candlesticks should not have very long shadows and ideally open within the real body of the preceding candle in the pattern. - Three line strike : The bullish formation is composed of a big green candle, 3 up candles, and one down candle erasing the advance made by the prior 3 candles. 📚 After prices trend in a particular direction, they will pause before refreshing higher. This is seen as a continuation pattern and is different from a pattern that would signal a reversal. - Three inside up : The three inside up pattern is a bullish reversal pattern composed of a large down candle, a smaller up candle contained within the prior candle, and then another up candle that closes above the close of the second candle. 📚 Consider using these patterns within the context of an overall trend. For example, use the three inside up during a pullback in an overall uptrend. 📌 These patterns are short-term in nature, and may not always result in a significant or even minor trend change. - Three outside up : The three outside up and three outside down patterns are characterized by one candlestick immediately followed by two candlesticks of opposite shading. 📚 Three outside up/down are patterns of three candlesticks that often signal a reversal in trend. 📌 Each tries to leverage market psychology in order to read near-term changes in sentiment. - Three stars in the south : It is formed by three black or red (down) candles of decreasing size following a price decline. 📚 The pattern indicates a bullish reversal, although the price should ultimately move in the expected direction before taking a trade. This is called confirmation. 📌 The three stars in the south candlestick pattern is a very rare pattern that doesn't typically precede large price moves. - Bullish stick sandwich pattern : One candlestick pattern is the stick sandwich because it resembles a sandwich when plotted on a price chart - they will have the middle candlestick oppositely colored vs. the candlesticks on either side of it, both of which will have a larger trading range than the middle candlestick. 📚 Candlestick charts are used by traders to determine possible price movement based on past patterns; These patterns may indicate either bullish or bearish trends, and so should be used in conjunction with other methods or signals. - Matching low : The matching low pattern is created by two down candlesticks with similar or matching closing prices. 📚 The pattern occurs following a price decline and signals a potential bottom or that price has reached a support level. - Break breakaway : The first candle in the formation is long and black. The second candle is also long gaps away from the first in the direction of the trend. The third candle can be either color, but does not show a change in trend direction. The fourth candle continues in the direction of the proceeding trend. The fifth candlestick has a long white body, opens against the trend and continues in that direction to close the gap. 📚 The Bullish Breakaway pattern is a five candle reversal formation that occurs during a downtrend. - Bullish Tri-Star : Tri-Star patterns form when three consecutive DOJI candlesticks appear at the end of a prolonged trend. 📚 A Tri-Star is a three line candlestick pattern that can signal a possible reversal in the current trend, be it bullish or bearish. 📍 A Tri-Star pattern near a significant support or resistance level increases the probability of a successful trade. - MARUBOZU : A large real body, There will be no shadow at either sides of the candle, The color of the candle will be of a significant meaning. 📚 MARUBOZU means “bald head” or “shaved head” in Japanese, and this is shown in the absence of wicks or shadow on the candlestick, meaning that the opening or closing price will be the same as the maximum prices of the candle. The absence of shadow indicates that the trading session opened at a high price and close at a low price at the end of the day (or the opposite). 🔴 NOTES : - There are many bullish reversal patterns that we only present most useful patterns for trading ! - Most of them have 2 definition and direction ( Bearish and Bullish ) and we only present bullish reversal patterns ! - For better result in your trading, You need to confirm patterns through trend lines, momentum, oscillators, or volume indicators. ⏰ Best timeframes to work with candlestick patterns : Traders usually use Monthly, Weekly, Daily, 4-Hour, Hourly, 15-Minute and even 1-Minute timeframes. Ideally, traders pick the main timeframe they are interested in and then choose a longer and a shorter timeframe to complement the main one. The longer timeframes typically contain fewer and more reliable signals. The shorter timeframes usually contain more signals with less accuracy. There are several types of traders, and they have different trading styles. 📍 We will provide more contents for candlestick patterns in next weeks ! So stay tuned and support us with your LIKES, COMMENTS and FOLLOWINGS... Have a great moments. @Helical_Trades
NSENG:ACADEMYEducation
by Helical_Trades
122