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Candlesticksignals

Head and Shoulders Pattern On Natural GasHere we have a textbook Head and Shoulders Pattern after a strong uptrend on natural gas. The volatility between the head and the kneckline was 19% so we used this as our main take profit area. At first it seemed too much of a price move however 4 weeks later not only did we get past the 19% take profit area, price went down further to 26%. This was a big trade to take, the entry for this set up is below: entering on the break and retest of the pattern. Using the rally candle for the signal to enter was key also. Also had a 2nd opportunity to enter the downtrend and this was the continuation pattern = symmetrical triangle (if located in a downtrend then the chances are that breakout will be to the downside Follow me for more analysis and candlestick signals.
CAPITALCOM:NATURALGAS
by LuxTradeVenture
Da Bears and Gold-1hr candlestick This area showed potential to become a double bottom. The white line is the yesterday's daily close. You can see how two Hammers were created. This formation ended up being just part of a bounce of a larger bearish move. The candle immediately following the second hammer is a large Bearish Engulfing which closed right at the level of support. The next candle has no upper wick and was able to push down. The Daily support now turned resistance. If this Bearish momentum continues, we could see Gold continue to drop several hundred dollars.
FX:XAUUSD
by Shanktown
Gala usdt idea and candlestick analysisAs you see in the chart, with the increase in the shadows of the candles in the bullish or bearish trend, along with one or two candles in the opposite direction of the movement of the chart, it's a trend change signal and a good setup to enter in the trading. P.S. I must say that; in the long-term time frame ( usually more than 1-H ), this method of Candlestick analysis is more effective. ---------------------------------------- Please write any advice or suggestions. Dear friends, request any cryptocurrency pair, currencies pair for forex, and any index that you want to be analyzed and ask any questions. Thanks for your attention
Short
by Arash-RK
Shooting Star Candlestick What is the Shooting Star Pattern? 1. A shooting star is a type of candlestick pattern which forms when the price of the security opens, rises significantly, but then closes near the open price. 2. The distance between the highest price of the day and the opening price should be more than twice as large as the shooting star’s body. What does Shooting Star tells you? 1. Shooting stars signals a potential downside reversal and is most effective when it forms after 2-3 consecutive rising candles having higher highs. 2. A shooting star opens and rises strongly during the trading session, showing the same buying pressure that is seen over the last trading sessions. 3. At the end of the trading session, the sellers push the price down near the open. 4. This shows that the buyers have lost control by the end of the day, and the sellers have taken over. 5. The long upper shadow indicates that the buyers are losing position as the price drops back to the open. 6. The candle after the shooting star gaps down and then moves lower on heavy volume. 7. This candle helps in confirming the price reversal and indicates that the price will continue to fall. Trading Scenario 1. Trade Entry: Before you enter a shooting star trade, you should confirm that the prior trend is an active bullish trend. 2. Stop Loss: You should always try to use a stop-loss order when trading the shooting star candle pattern. 3. Taking Profits: The price target for this trade should be equal to the size of the shooting star pattern. Limitations of Shooting Star 1. One should not only rely on a candle pattern like in a shooting star for making trading decisions. 2. This is why confirmation is required, one can confirm by the next candle or other technical analysis indicators. 3. One should also use stop losses when using candlesticks to control the losses. 4. A candlestick pattern is more significant when it occurs near an important level signaled by other forms of technical analysis.
BINANCE:ETHUSD.PEducation
by yaser_rahmati
U.S. Bonds & Stocks is ready for a rebound, why?One of the ways to determine U.S. stocks and indices’ direction in the long-term is to also know where the U.S. bonds markets are heading. Why? This is because the US bonds, its market capitalization can be as large as all the U.S. stocks market combined; therefore, it is also as important to also track its direction. In the macro trend over generations, the bonds move in tandem with the stocks market, meaning if bonds are heading up, the stocks market will likely follow. • Where is the main trend of the 30 Years T-Bond? • Why is the stocks market due for a rebound in the coming week? For this demonstration, I am using the CBOT U.S. 30 years T Bond Futures. If you are interested to research and explore into other treasuries tenures and the yield curve, under symbol search, Futures tab – search for Bonds, Notes or Yields. Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CBOT:ZB1!Long
by konhow
Muthoot FinanceHello and welcome to this analysis on MUTHOOT FINANCE cmp 1130 After peaking out in NOV 2021 it gave a Head & Shoulder breakdown in JAN 2022 which lead to a Bearish Alt ABCD 1.6x breakdown. Now after completing its Bearish Alt ABCD it has reversed with a Bullish Harmonic Alt Shark with a Long Legged Doji candle and a Positive RSI Divergence. It could bounce back to 1200 (initial target) to 1275 where it might retest the falling trend line. The pattern would be considered invalid below 1070
NSE:MUTHOOTFINLong
by Dinesh_C_Nagpal
2
Pullback Candles (Candlestick Analysis) Guaranteed Winners!!!! Pullback Candle will signal when price is at the end of a pullback and entering a balance phase in the market (works on all markets) Also we can expect a Pullback Candle during flash crashes as the theory of this script is when there is a turning point in momentum - this candle will appear and we can look long from this signal. This candle will only work in Swing Low areas and appear when below an moving average which can be changed in the settings. This candle will work on all timeframes - HTF provided very good rexpectancy whereas the LTF has a slightly less expectancy. This candle can be alerted to signal the Pullback Candle when the bar is confirmed and not during. The way i trade this candle is 1) Candle signal must be in probably area to increase efficiency. 2) Enter on the second candle after candle IS CONFIRMED 3) Set stop loss below Pullback Candle or use ATR value 4) Trade with the trend ie only bullish price action 5) This candle can catch falling knifes - we had one on LUNA before the rally to $7.50 6) Trading with a confluence along with the Pullback is better than solely trading this candle Please leave a comment. If we get to 100 likes i will publish the script. Have a good weekend :)
BINANCE:BTCUSD
by LuxTradeVenture
1
BNB/USDT : Broke below the support zone! BINANCE:BNBUSDT Hello everyone 😃 Before we start to discuss, I'll be so glad if you share your opinion on this post's comment section and hit the like button if you enjoyed it! $BNB has broken below the demand zone and now it's retesting the broken zone. The mentioned zone has held the price above $300 for more than 280 days and it's finally got broken! Not so sure about the market's current bias; But I'm going to locate my Short based on PA we have here. But there're a few factors that we need to look for : - The Stop-loss should be managed by active management, Because we had the stop-hunt above the last master candle earlier. - Entry should be located into the broken support zone. - Don't use High leverage. - Don't engage more than 3% of your portfolio. Hope you enjoyed the content I created, You can support us with your likes and comments! Attention: this isn't financial advice we are just trying to help people with their vision. Have a good day! @Helical_Trades
Short
by Helical_Trades
10
BTC 5th Red Weekly CloseBitcoin has just closed for the 4th time in history with a 5 declining candle a week in a row. The last time such a situation took place 7 years ago. We've never had 6 weeks of a downtrend. There is an opportunity for the statistically probable closing of the week in positive territory. It means a high probability of winning the LONG trade this week. The last three times have had 10% returns over the week. Indicator I used can be found in my scripts. Let me know what to you guys think.
INDEX:BTCUSDLong
by MarekZatwarnicki
It's time for a pullback on EURUSDEURUSD has reached the previous low and now we want to see if it will be able to break below it. If the breakout is unsuccessful then we could see a pullback to around 1,0900. If that would happen then ideally we want to see another test of the low with a wick below it but a candle close to the upside. That could also signal for aggressive entries with stops just below that reversal candle. In case of price going up against the main trend then we want to make sure we move our stops to BE as soon as possible.
by ForexTrendline
10
How to Read a Candlestick | Beginners Guide 🕯 Hey traders, If you follow me for quite a while you probably noticed that I apply a candlestick chart for the market analysis. In this post, we will discuss how to read an individual candlestick and we will outline its important elements. 🔰The candlestick reflects the price movement for a selected period of time. An hourly candle will show you a price action within an hour and a daily candle within a day. 🔰The candlestick pattern has a very specific shape: it is composed of a body and a wick. The wick of the candle indicates the range of the price action within the candle. Its upper wick will show you the highest price during that time period and its lower wick will show the lowest price, while the body of the candle indicates its opening and closing price. 🔰From the color of the body of the candle, we identify its direction. Green signifies a bullish candle while red signifies a bearish one. 🔰The lower boundary of a body of a bullish candle will show its opening price and its upper boundary its closing price. 🔰The upper boundary of a body of a bearish candle indicates its opening price and its lower boundary its closing price level. With so many elements within a single candlestick, one can derive a lot of valuable information. Some candlesticks have a very specific form and are called candlestick patterns. They are applied for predicted the future market behavior. A proper reading of a candlestick chart may unveil a lot of insights about the market so it is very important for you to learn to work with that. ❤️Please, support this idea with like and comment!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
12
Channel Trading On Luna 11/04/2022Channel Trading consist of price fluctuating between two parallel lines which forms the channel. We look to buy when price is bouncing off the trendline connecting the Hl and look to sell when on the upper trendline connecting the HH I wont speak too much on Channel Trading but if so please drop a comment. We have the bearish set ups on the left side of the screen with the bullish set ups on the right side. The green bubbles produced long entries whereas the purple bubbles produced short signals. BINANCE:LUNAUSDT
by LuxTradeVenture
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 Patterns Finish, Part 7 GuideGuide Candles Patterns Candlestick patterns are usually quite good when trying to finish an analysis as it can help you confirm a trend. Basic Candles - Three Line Patterns 1- Advance Block Description: The Advance Block is classified as a three-line bearish reversal pattern. The first line is a white candle that appears as a long line in an uptrend. It can be any of the following basic candles: White Candle, Long White Candle, Opening White Marubozu, Closing White Marubozu or White Marubozu. The second line can be made up of any white candle, appearing as a long or short line. It opens within the body of the first candle and closes above it. The last, third line, is also any white candle that appears as a long or short line. It opens inside the body of the second line and closes above it. Each subsequent candle body within the Advance Block pattern is shorter than the previous one. The shadows in the second and third lines should be longer than those in the first line. The pattern indicates that the bulls are weakening. However, three white bodies form a support zone and, to consider the pattern, it is necessary to confirm it. Therefore, after the appearance of the pattern, the market should close below the first line. If this is not the case, the occurrence of the pattern should be treated as false. The Advance Block is a very rare pattern. Building: First candle • Or a candle in an uptrend • Or white body Second candle • Or white body • Or the opening price is within the previous body • Or the closing price is above the previous closing price Third candle • Or white body • Or the opening price is within the previous body • Or the closing price is above the previous closing price Example: MRK ,14 Dec, 2010. Chart 1d. 2- Three Outside Up Description: The Three Outside Up pattern is a three-line pattern that is an extension of the two-line Bullish Engulfing pattern. Morris introduced the pattern and was intended to improve the performance of the two-line pattern. The third candle is bound to behave as a confirmation of the bullish engulfing. As with the Bullish Engulfing, the first black candle is engulfed by the second with a white body. The first line can appear as a short or long line. It can be any basic black body sail. Doji candles are allowed, except for the four price Doji. The second line should appear as a long line and the candle should be white. It can be one of the following candles: White Candle, Long White Candle, White Marubozu, Opening White Marubozu and Closing White Marubozu. Spinning tops and doji candles are not allowed. The last line of candles can be any basic candle, which has a white body and closes above the closing price of the second candle. In the case of this pattern, the length of the shadows does not matter. Although the idea behind the Three Outside Up is to confirm the Bullish Engulfing, in our opinion the extended pattern should be confirmed anyway. Confirmation can be in the form of a breakout of the nearest resistance zone or a trend line. Building: First candle • Or a candle in a downtrend • O black body Second candle • Or white body • Or the body of the candle wraps around the body of the previous candle (black) Third candle • Or closing price above the previous closing price • Or white body Example: WMT ,22 Aug, 2012. Chart 1d. 3- Three Stars in the South Description: The Three Stars in the South are classified as a three-line bullish reversal pattern. All of its candles are shortening and having black bodies, indicating that bearish momentum is weakening. The pattern name can be somewhat misleading, as we are not dealing with star-like short candles here. There are also no price differences between the candle lines. The first line of the pattern appears as a long line that has a long lower shadow that must be longer than the body. This means that the first line can be made up of the Hammer or Takuri Line pattern. The second candle opens below the previous opening price and closes below the previous closing price. The low price should be higher than the previous low price. The third line is a marubozu sail that has a black body. The candle fits within the midline. It appears as a short line. This last condition has the greatest impact at very low frequencies, meaning the pattern rarely appears on candlestick charts. Building: First candle • Or a candle in a downtrend • O black body • Or long lower shadow Second candle • O black body • Or the opening below the previous opening • Either the close below or at the previous close • Or the low above the previous low Third candle • Or a marubozu candle with a black body • Or appears as a short line • Or a candle is inside the previous candle Example: WMB,15 Sep, 1986. Chart 1d. 4- Evening Doji Star Description: The Evening Doji Star is a bearish reversal pattern, very similar to the Evening Star. The only difference is that the Evening Doji Star must have a doji candle (except for the four price Doji) on the second line. The doji candle (second line) must not be preceded or followed by a price difference. If a lower shadow of a doji candle were placed above the first and second shadow lines, we would be dealing with the Bearish Abandoned Baby pattern. It happens that the first two candles are forming the Bearish Doji Star pattern. The pattern, like any other candlestick pattern, should be confirmed in the next few candles exiting the support zone or a trend line. If the occurrence is confirmed, then your third line can act as an area of resistance. However, it also happens that the pattern is simply a short pause before further price increases. Patterns rarely occur on charts. Building: First candle • or a candle in an uptrend • or white body Second candle • Or a doji candle • Or a doji body on the body of the previous candle • Or the low price below the high price of the previous candle Third candle • O black body • O body of the candle below the body of the previous candle • Or the closing price below the midpoint of the body of the first candle Example: PG,12 Dec, 2012. Chart 1d. 5- Bearish Abandoned Baby Description: The Bearish Abandoned Baby is a three-line bearish reversal candlestick pattern. Its construction is very similar to that of the Evening Doji Star. The only difference is that in the case of Bearish Abandoned Baby, the doji candle opens on the shadows of the candle lines on either side, which is not the case with the Evening Doji Star. The doji candle can be of any type except the four price Doji. In other words, it can be any of the following types of doji: Doji, Long Legged Doji, Dragonfly Doji, Tombstone Doji. The pattern needs to be confirmed, either by breaking the trend line or the nearest support zone. The Bearish Abandoned Baby pattern appears very rarely in charts, so its practical application is quite low. Building: Building: First candle • Or a candle in an uptrend • Or white body Second candle • Or a doji candle • Or the low price above the previous high price Third candle • O black body • Or the high price below the previous low price Example: I have no example for this pattern, sorry. 6- Bearish Side-by-Side White Lines Description: The side-by-side bearish white line pattern is a three-line pattern that predicts a continuation of the downtrend. The first line appears as a long line in a downtrend. The second and third lines can be any white candle that appears as a long or short line, but the body cannot be greater than the body of the first line. The pattern is characterized by a price gap that appears between the first line and two subsequent lines, whose high prices are below the low price of the first line. The last two candles should be a similar size. Also, your opening and closing prices should be similar. The first two lines of the pattern form the Descending Window pattern. Bulkowski and Morris in their books present examples where price differences are only between bodies. In other words, the upper shadows of the second and third lines can reach above the low price of the first line. However, in our approach we decided to be more strict. The price gap should appear between candles, including shadows, because Shimizu emphasizes that the candles in this pattern must be quite short. The pattern has a very low frequency. Building: First candle • Or a candle in a downtrend • O black body Second candle • Or white body • Or the high price below the previous low price Third candle • Or white body • Or the high price below the low price of the first line • Or the size of the candle is similar to the size of the previous candle Example: We can find this chart in JDSU Stock, As of January 14, 2008, tradingview sadly does not have this stock. 7-Evening Star Description: The Evening Star is a three-line bearish reversal pattern that appears in an uptrend. The first line is any white candle that appears as a long line in an uptrend: Long White Candle, White Candle, White Marubozu, Opening White Marubozu, Closing White Marubozu. The second line can be any black or white candle that appears as a short line, except doji candles. The body of the candle must be placed above the previous body, that is, the opening and closing price must be higher than that of the previous candle. The third line is a black candle that appears as a long line, that is: Long Black Candle, Black Candle, Black Marubozu, Opening Black Marubozu, Closing Black Marubozu. The opening price should be below the body of the previous candle. The candle should close at least halfway across the body of the first line. The length of the shadows or the lack of it does not matter for any pattern line. The second line of the evening star can form the shooting star pattern of a candle. The first two lines can form the two-candle shooting star. The Evening Star should be confirmed in the following candles, breaking the trend line or the closest support zone, which can be formed by the first line of the pattern. If the pattern is confirmed, your third line may turn into a resistance zone. When the pattern is not confirmed, it may simply be a short pause before further market growth. Building: First candle • Or a candle in an uptrend • Or white body Second candle • Or white or black body • Or the body of the candle is above the previous body Third candle • O black body • Or the body of the candle is below the previous body • Or the candle closes at least half the body of the first line Example: BAC,14 Apr, 2010. Chart 1d. 8- Three White Soldiers Description: The pattern of the Three White Soldiers has had several names historically. The Japanese called it the Three Red Soldiers, because what in the western world is known as a white candle, they actually used the color red. During World War II, some called the pattern the Three Soldiers on the March. Finally, now the pattern is widely known as the Three White Soldiers. The pattern is classified as a bullish reversal and appears within a downtrend. The three lines can be formed by any candle that has a white body, appearing as long lines. This means that the following candles may appear: Long White Candle, White Candle, White Marubozu, Opening White Marubozu and Closing White Marubozu. Doji candles and spinning tops are not allowed. The first line forms in a downtrend. The next lines, which is the second and third, open above the opening price of the previous candle and close above the closing price of the previous candle. In the past, some authors required that the opening price of the second and third lines be at least half the height of the body of the previous candle. Others demanded that the closing prices be near the high of the candle, that is, that the candles have very short shadows. However, candlestick patterns and technical analysis in general are evolving, and the Three White Soldiers can be used as an example of such an evolution. In fact, three long white candles in a row with a higher subsequent close price indicate that the bulls are in control of the market. The pattern must be confirmed, but it does not have to occur on the next nearest candle because it becomes a significant upward movement and some market participant may be willing to take the profit. Such behavior may lead to a temporary price drop, but the candles that form the pattern create an area of ​​support that should rescue the market. Then the bulls can regain control. If the pattern is followed by a candle that closes below the opening price of the first line, it should be seen as a false signal. Building: First candle • Or a candle in a downtrend • Or white body Second candle • Or white body • Or the opening price within the previous body • Or the closing price above the previous closing price Third candle • Or white body • Or the opening price within the previous body • Or the closing price above the previous closing price Example: HPE ,27 Apr, 2005. Chart 1d. 9- Morning Star Description: The Morning Star is a three-line bullish reversal pattern that appears in a downtrend. The first line is any black candle that appears as a long line in a downtrend: Long Black Candle, Black Candle, Black Marubozu, Opening Black Marubozu, Closing Black Marubozu. The second line can be any black or white candle that appears as a short line, except doji candles. The body of the candle must be placed below the previous body, that is, the opening and closing price must be lower than those of the previous candle. In other words, there must be a space between the first and the second body. The third line is a white candle that appears as a long line, that is: Long White Candle, White Candle, White Marubozu, White Marubozu that opens, White Marubozu that closes. The opening price should be above the body of the previous candle. The candle should close to at least half the body of the first line. Some fonts do not require a space between the second and third body. The length of the shadows or the lack of it does not matter for any pattern line. It happens that the first two lines can form the inverted hammer candlestick pattern. The morning star should be confirmed in the following candles, breaking the trend line or the closest resistance zone, which can be formed by the first line of the pattern. If the pattern is confirmed, your third line can become a support zone. When the pattern is not confirmed, it may simply be a short pause before the market continues to decline. Building: First candle • Or a candle in a downtrend • Or white body Second candle • Or white body • Or the opening price within the previous body • Or the closing price above the previous closing price Third candle • Or white body • Or the opening price within the previous body • Or the closing price above the previous closing price Example: KO ,23 May, 2007. Chart 1d. 10- Three Inside Down Description: Gregory Morris introduces the Three Inside Down three-line pattern as an extension of the Bearish Harami pattern. The first line of it is any candle that has a white body, appearing as a long line, i.e. White Candle, Long White Candle, White Marubozu, Opening White Marubozu, or Closing White Marubozu. The second line is any black candle except doji candles. Also, the body of the second line must be swallowed by the body of the first line. The opening price of the second line can be equal to the closing price of the first candle. The closing price of the second line can be equal to the opening price of the first candle. However, these two situations cannot occur at the same time. The third candle in the pattern can be made up of any candle that has a black body, except doji candles, which close below the closing price of the second candle. Shadows don't matter in the case of this pattern. The first line of the pattern can act as a support area. The Three Inside Down pattern should be confirmed. Confirmation can be in the form of breaking out of the nearest support zone or a trend line. Building: First candle • Or a candle in an uptrend • Or white body Second candle • O black body • Or the body of the candle is enveloped by the body of the previous candle Third candle • Or the closing price is below the previous closing price Example: CVX,01 May, 2012. Chart 1d. 11- Bullish Tri-Star Description: The Bullish Tri-Star pattern is a three-line bullish reversal pattern in which all three lines are doji candles (any doji candle except the four-price Doji). The middle doji (second line) is below the others. Shadows don't matter. The pattern must be confirmed at the next candles, which is the closest resistance zone or a trend line must be broken. The context of the market, in which the pattern appears, is crucial. Nison first introduced the Bullish Tri-Star pattern. It appears very rarely on candlestick charts and is therefore not very useful on a daily basis. Building: First candle • Or a doji candle in a downtrend Second candle • Or a doji candle • Or a body under the previous body Third candle • Or a doji candle • Or a body above the previous body Example: BAX,04 Mar, 2009. Chart 1d. After: 12- Upside Gap Three Methods Description: The Upside Gap Three Methods is a bullish continuation pattern of three lines that belongs to the family of tasuki patterns. It is a variant of the Upside Tasuki Gap pattern, but the price gap between the two white candles is closed. Although the price gap between the two white candles is closed, the pattern is classified as bullish continuation. The pattern must be confirmed, that is, the price must move above the closing price of the second line. In other words, the third line that is a black candle must be negated. Last two lines can form the Bearish Tasuki Line pattern, which is a bearish reversal pattern. If such a situation occurs, then the market context should play the most important factor. Building: First candle • Or a candle in an uptrend • Or white body Second candle • Or white body • Or the minimum above the previous maximum (gap) Third candle • O black body • Or the opening price within the previous body • Or the closing price within the body of the first line (closing the gap) Example: AXP,13 Apr, 2009. Chart 1d. After: 13- Bullish Side-by-Side White Lines Description: The side-by-side bullish white line pattern is a three-line pattern that predicts a continuation of the uptrend. The first line appears as a long line in an uptrend. The second and third lines can be any white candle that appears as a long or short line, but the body cannot be longer than the body of the first line. The pattern is characterized by a price gap that appears between the first line and two subsequent lines, whose low prices are above the high price of the first line. The last two candles should be a similar size. Also, your opening and closing prices should be similar. The first two lines of the pattern form the Ascending Window pattern. Bulkowski and Morris in their books present examples where price differences are only between bodies. In other words, the lower shadows of the second and third lines can fall below the high price of the first line. However, in our approach we decided to be more strict. The price gap should appear between candles, including shadows, because Shimizu emphasizes that the candles in this pattern must be quite short. Building: First candle • Or a candle in an uptrend • Or white body Second candle • Or white body • Or the low price above the previous high price Third candle • Or white body • Or the low price above the high price of the first line • Or the size of the candle is similar to the size of the previous candle Example: I have no example for this pattern. 14- Three Inside Up Description: The Three Inside Up pattern was introduced by Gregory Morris as an extension of the Bullish Harami, confirming that pattern. Your first line is any candle that has a black body, appearing as a long line, that is, a black candle, a long black candle, a black marubozu, a black marubozu that opens, or a black marubozu that closes. The second line is any white candle, except doji candles. Also, the body of the second line must be swallowed by the body of the first line. In other words, the first and second lines of the pattern form the Bullish Harami pattern. The opening price of the second line can be equal to the closing price of the first candle. The closing price of the second line can be equal to the opening price of the first candle. However, these two situations cannot occur at the same time. The third candle in the pattern can be made up of any candle that has a white body, except doji candles, closing above the closing price of the second candle. This candle is intended to act as a confirmation of the Bullish Harami pattern. Shadows don't matter in the case of this pattern. The first line of the pattern can serve as a support area. The Three Inside Up pattern should be confirmed, although it is an extension of the confirmed Bullish Harami pattern. Confirmation can be in the form of breaking out of the nearest support zone or a trend line. Building: First candle • Or a candle in a downtrend • O black body Second candle • Or white body • Or the body of the candle is enveloped by the body of the previous candle Third candle • Or the closing price is above the previous closing price Example: JPM,25 Sep, 2012. Chart 1d. 15- Three Inside Up Description: The Three Inside Up pattern was introduced by Gregory Morris as an extension of the Bullish Harami, confirming that pattern. Your first line is any candle that has a black body, appearing as a long line, that is, a black candle, a long black candle, a black marubozu, a black marubozu that opens, or a black marubozu that closes. The second line is any white candle, except doji candles. Also, the body of the second line must be swallowed by the body of the first line. In other words, the first and second lines of the pattern form the Bullish Harami pattern. The opening price of the second line can be equal to the closing price of the first candle. The closing price of the second line can be equal to the opening price of the first candle. However, these two situations cannot occur at the same time. The third candle in the pattern can be made up of any candle that has a white body, except doji candles, closing above the closing price of the second candle. This candle is intended to act as a confirmation of the Bullish Harami pattern. Shadows don't matter in the case of this pattern. The first line of the pattern can serve as a support area. The Three Inside Up pattern should be confirmed, although it is an extension of the confirmed Bullish Harami pattern. Confirmation can be in the form of breaking out of the nearest support zone or a trend line. Building: First candle • Or a candle in a downtrend • O black body Second candle • Or white body • Or the body of the candle is enveloped by the body of the previous candle Third candle • Or the closing price is above the previous closing price Example: JPM,25 Sep, 2012. Chart 1d. 16- Deliberation Description: Deliberation is a three-line bearish reversal candlestick pattern. It is made up of three white chandeliers. The first and second lines of the pattern have long bodies. The third candle has a shorter body than two previous candles. Each subsequent candle opens above the previous opening price. The same applies to closing prices. The third candle appears as a short line and can be one of the following: Short white candle or White spinning top. The opening price of the last candle is slightly lower or higher than the previous closing price. Shimizu provides a somewhat different characteristic of the deliberation pattern. The first candle is short, the second is long, indicating a significant upward movement (a price gap is visible on the diagram of his book). The third candle is short, indicating that the bulls are tired of trying to raise the price. Because all the candles in the pattern have white bodies, the pattern acts as a support zone. The pattern is confirmed if the bears manage to move the price below the opening price of the first candle. Building: First candle • Or a candle in an uptrend • Or white body Second candle • Or white body • Or the opening price is higher than the previous opening price • Or the closing price is above the previous closing price Third candle • Or white body • Or the opening price is slightly lower or higher than the previous closing price • Or the closing price is above the previous closing price Example: MCD ,16 Feb, 2007. Chart 1d. 17- Upside Tasuki Gap Description: The Upside Tasuki Gap is a three-line bullish continuation pattern that belongs to the family of tasuki patterns. Your first line appears as a long line in an uptrend, with a white body. The second line can appear as any white candle, either as a long or a short line. There is a price gap between the first two lines. The third line can be any black candle (except doji candles) that opens between the previous open and close prices. It closes below the previous opening price, however it does not close the price gap between the first and second lines. The Upside Tasuki Gap should be confirmed, that is, the candles that follow its appearance should close above the closing price of the second line. The second and third lines of the pattern can form the bearish Tasuki Line which acts as a bearish reversal pattern. Therefore, considering the market context is very important. Building: First candle • Or a candle in an uptrend • Or white body Second candle • Or white body • Or the minimum above the previous maximum (gap) Third candle • O black body • Or the opening price within the previous body • Or the closing price above the close of the first line Example: MCD ,20 Oct, 2014. Chart 1d. 18- Collapsing Doji Star Description: The collapsed Doji star pattern is a bearish three-line reversal pattern, which appears very rarely. Therefore, the pattern is not very useful. The first line is a white candle that appears in an uptrend. The next line is a doji candle (except the four price Doji) that opens below the previous candle, including shadows. The last, third line, is a black candle that also opens below previous candles, including shadows. The pattern should be confirmed on the following candles. Building: First candle • Or a candle in an uptrend • Or white body Second candle • Or a doji candle • Or the high price below the previous low price Third candle • O black body • Or the high price below the previous low price Example: IVZ,16 Nov, 2006. Chart 1d. 19- Three Black Crows Description: The Black Three Crows is a three-line bearish reversal candlestick pattern. The first line appears in an uptrend, and two other lines open below the opening price of the previous candle but above the closing price of the previous candle. The opening price of the second or third candle is allowed to be equal to the opening price of the previous candle. Historically, the pattern had more conditions, for example, that the next candle should open at least half of the previous candle. Another requirement in the past was that the sails had to have very short bottom shadows. Today, most traders reject such restrictions. Three black candles that appear as long lines, each closing at a new low, indicate market sentiment well. The Three Black Crows often form a hardiness zone. However, it happens that three black candles are not breaking the nearest support zone and the price is moving sideways. Often the pattern is preceded by reversal patterns, for example, Bullish Engulfing, Evening Star, Northern Doji, and others. The location of the pattern on the table can be essential. If the first line breaks a trend line, price drops can be deep. Especially when there are no significant support areas nearby. The Three Black Crows pattern is canceled when it is followed by candles whose closing price is above the opening price of the first line. Building: First candle • Or a candle in an uptrend • O black body Second candle • O black body • Or the opening price within the previous body • Or the closing price below the previous closing price Third candle • O black body • Or the opening price within the previous body • Or the closing price below the previous closing price Example: VZ,14 Dec, 2009. Chart 1d. After: 20- Three Black Cross Description: Greg Morris proposed the three-line Three Outside Down pattern as an extension of the two-line Bearish Engulfing pattern. The first and second lines of it form the bearish engulfing pattern. The first line can appear as a short or long line. It can be any basic candle that has a white body. Doji candles are allowed, except for the four price Doji. The second line should appear as a long line and the candle should be black. It can be one of the following candles: Black Candle, Long Black Candle, Black Marubozu, Opening Black Marubozu and Closing Black Marubozu. Spinning tops and doji candles are not allowed. The last line of candles can be any basic candle, which has a black body and closes below the closing price of the second candle. The length of the shadows does not matter for any line. The Three Outside Down pattern appears in a downtrend that predicts its reversal. Although the third line is a kind of confirmation of the bearish engulfing, it is worth waiting for the confirmation in the later candles. In other words, it is recommended to see if the price breaks out of the nearest resistance zone or a trend line. Depending on the market, if trading volume information is available, it should normally be significantly higher on the third line of the pattern. Building: First candle • Or a candle in an uptrend • Or white body Second candle • O black body • Or the body of the candle wraps around the body of the previous candle (white) Third candle • Or closing price below the previous closing price • O black body Example: INTC,02 May, 2012. Chart 1d. After: 20- Three Black Cross Description: Greg Morris proposed the three-line Three Outside Down pattern as an extension of the two-line Bearish Engulfing pattern. The first and second lines of it form the bearish engulfing pattern. The first line can appear as a short or long line. It can be any basic candle that has a white body. Doji candles are allowed, except for the four price Doji. The second line should appear as a long line and the candle should be black. It can be one of the following candles: Black Candle, Long Black Candle, Black Marubozu, Opening Black Marubozu and Closing Black Marubozu. Spinning tops and doji candles are not allowed. The last line of candles can be any basic candle, which has a black body and closes below the closing price of the second candle. The length of the shadows does not matter for any line. The Three Outside Down pattern appears in a downtrend that predicts its reversal. Although the third line is a kind of confirmation of the bearish engulfing, it is worth waiting for the confirmation in the later candles. In other words, it is recommended to see if the price breaks out of the nearest resistance zone or a trend line. Depending on the market, if trading volume information is available, it should normally be significantly higher on the third line of the pattern. Building: First candle • Or a candle in an uptrend • Or white body Second candle • O black body • Or the body of the candle wraps around the body of the previous candle (white) Third candle • Or closing price below the previous closing price • O black body Example: INTC,02 May, 2012. Chart 1d. After: Basic Candles - Four Line Patterns/b] 1- Bearish Three-Line Strike Description: The three-line bearish exercise is a bearish continuation candlestick pattern. First three candles have black bodies. They can be made up of any black candle except doji and form lower closes. All of them are located within a downtrend. The fourth candle has a white body and appears as a long line. It can be one of the following candles: White Candle, Long White Candle, White Marubozu, Opening White Marubozu, Closing White Marubozu. The candle opens below the previous close and closes above the open of the first line. In other words, the body of the fourth candle envelops all the previous candles. The length of the shadows does not matter. Similar to the bullish counterpart, the three-line bearish strike is a controversial pattern. Its last two lines form the bullish engulfing pattern, which by definition reverses the downtrend. This is in opposition to what the three-line bearish exercise predicts, which is the continuation of the downtrend. Therefore, as usual, every pattern occurrence must be confirmed. Bulkowski writes that the three-line bearish strike behaves like a bullish reversal, rather than a bearish continuation. Within its classification of candlestick patterns, the pattern is number one. We are against creating such classifications for a few reasons. First, the pattern appears very rarely on the charts, which does not allow for reasonable statistics to be calculated. Second, by testing many patterns, we clearly see that a given pattern can be very profitable on asset A, while it is a business disaster on asset B. Therefore, each pattern must be thoroughly tested under its specific conditions. Building: First candle • Or a candle in a downtrend • O black body Second candle • O black body • Or the opening price is within the previous body • Or the closing price is below the previous closing price Third candle • O black body • Or the opening price is within the previous body • Or the closing price is below the previous closing price Fourth candle • Or white body • The body of the candle wraps all the previous black bodies. Example: BF.B,29 Aug, 2013. Chart 1d. 2- Bearish Three-Line Strike Description: Hiding Baby Swallow is a four line candlestick pattern, appearing so rarely (or not appearing) that traders can ignore it. Two Black Marubozu candles appearing one after the other is a very rare situation on candlestick charts, limiting the appearance of this pattern. The additional requirement, which is the appearance of the High Wave candle, makes the pattern hardly appear on the charts. There is a space between the first and second lines. The second and third lines can form the Inverted Hammer pattern, which has the same forecast as the Hidden Swallow, which is a bullish reversal. Building: First candle Or a Black Marubozu candle in a downtrend Second candle • Or a black Marubozu candle • Or the candle opens inside the body of the previous candle • Or candle closes below the previous closing price Third candle • Or a basic High Wave sail with no bottom shadow • Or the candle opens below the previous close price • Or the upper shadow enters the body of the previous candle Fourth candle • O black body • Or the body of the candle wraps around the body of the previous candle, including the shadows Example: EXPD ,10 Aug, 1990. Chart 1d. Basic Candles - Five Line Patterns/b] 1- Bearish Breakaway Description: The bearish breakout is a five-line bearish reversal pattern introduced by Greg Morris as the counterpart of the bullish breakout. Similar to the bullish variant, a price gap forms between the first and second lines. The last fifth line represents a trend break formed by a long black candle. The opening price is lower than the previous closing price, but the candle closes above the closing price of the first line and the gap is not covered. The pattern requires confirmation and one of the following candles should close the price gap. The bearish breakout appears very rarely on the charts. In 20 years on the S & P500, we found only 23 occurrences. Building: First candle • Or a tall white candle Second candle • Or a white candle • Or the candle opens above the previous closing price (price difference up, shadows may overlap) Third candle • Or a white or black candle • Or candle opens above the previous opening price Fourth candle • Or a white candle • Or candle closes above the previous closing price Fifth candle • Or a tall black candle • Or the candle opens below the previous close price • Or the candle closes below the opening price of the second line and above the closing price of the first line • Or the price gap formed between the first and second lines is not closed Example: DIS,02 Apr, 1992. Chart 1d. 2- Ladder Bottom Building: • The candlestick pattern at the bottom of the ladder is a bullish 5-bar reversal pattern. • It is formed by following these characteristics: • The first three long black chandeliers, which resemble the formation of three black ravens, with successive lower openings and closings • The fourth is also a black candlestick but with a short body and an upper wick. • The fifth white candle that opens on the body of the fourth candle Example: CMA,30 Jul, 2012. Chart 1d. 3- Rising Three Methods & Falling Building: • The Rising Three Methods or Falling is a bullish 5-candle continuation candlestick pattern. • It has a large green candle, 3 small red ones and a large green one that closes over the others. Or Contrary • The three descending methods are the opposite of the three ascending methods and is a bearish continuation candlestick pattern. Falling Three Methods The three descending methods are the opposite of the three ascending methods and can be seen in a downtrend. The first bar in this pattern is dark bearish with a large real body. The next candles are expected to be smaller, bullish, light-colored ascending candles. These bars should not go beyond the maximum or minimum of the first bar. The last candle to complete the pattern must be lower than the close of the previous candle and must close below the close of the first candle. That chart pattern experiences a price decline, recovers during the corrective phase, and then the decline resumes. The chandelier behaves in theory as it does in real life. It is a bearish continuation 71 percent of the time and a reversal the rest of the time. Unfortunately, with only 64 samples from 4.7 million candle lines studied, quality performance statistics are as rare as the candle itself. Example: KSU ,24 Dec, 2001. Chart 1d. Rising Three Methods Using three methods is a bullish continuation pattern that forms in an uptrend and the conclusion of which sees a resumption of that trend. This is the opposite of the three-drop method. The three-method bottom-up pattern is formed when the price of a security meets these characteristics: The first bar in the pattern is a bullish candle with a large real body within an obvious uptrend. The next few candles, usually three consecutive small-bodied bearish candles trading above the low and below the high of the first candle. The final bar is another bullish candle that has a large real body that breaks above the high and closes above the high and close of the first candle, suggesting that the bulls have once again controlled the direction of the value. The bulls are in full control before pausing a bit to see if there is enough conviction in the trend. The series of small candles that fall between the first and the fifth candle in the ascending three-method pattern is considered a period of consolidation before the uptrend resumes. The decisive bullish candle is proof that the sellers did not have enough conviction to reverse the previous uptrend and that the buyers have regained control of the market. Active traders can apply the pattern as an indication to include in their long positions. Example: OMGBTC ,14 Sep, 00:00, 2008. Chart 6h. 4- Bullish Breakaway Building: • The breakaway candlestick pattern is a reversible five-bar candlestick pattern. • It is a counterpart to Bearish breakaway • The first candle must be long. • The next three candles must be spinning tops. • The second candle must also create a space between the first and itself. • The fifth candle must be a long candle that closes within the body space of the first two candles. Example: DISCK ,06 May, 2015. Chart 1d. 5- Ladder Top Building: • The Ladder Top candlestick pattern is a 5-bar bearish reversal pattern that appears at the end of an uptrend. • You can identify it with the following characteristics: • The first three candles are always white with long real bodies that open and close above the open and close levels of the previous candle. • The fourth candle should have a short white body with a long lower wick. • The fifth candle should be a long black candle that opens below the true body of the fourth candle. • Its opposite is Ladder Bottom. How to identify the candlestick pattern at the top of the ladder? The appearance of the candlestick pattern at the top of the ladder is a very rare phenomenon that occurs very rarely. As we already know that it is a bearish reversal pattern, therefore the predominant trend must be an uptrend or an uptrend. There are a few other suggestions that can be used to identify the pattern at the top of the ladder. The first three candles are always white with long real bodies that open and close above the open and close levels of the previous candle. The fourth candle should have a short white body with a long lower wick. The fifth candle should be a long black candle that opens below the true body of the fourth candle. Example: DISCK ,05 Dec, 2016. Chart 1d. 6- Mat Hold Bullish & Bearish Building: The bullish Mat Hold Japanese candle formation is a highly reliable trend continuation pattern, which occurs in uptrend or downtrend markets and indicates that there is a high probability that the market will continue with the general trend of its trend. real. Example: With this we have finished all the relevant patterns in candles, congratulations you have finished everything. You can go easy, there are others but they are not relevant and they are created by other authors. These are the main ones. They work mostly in Forex and in cryptocurrencies from time to time they are useful, this topic is wide, but I like to teach a completely complete guide. This has just started, the next topic will be Heikin Ashi where it will not be as long as this, but I will try to explain ways to use it. Then we will continue with Line, BaseLine, etc. Thank you very much for supporting.
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