Technical Analysis Training : What is White Marubozu: Bullish Reversal/Continuation Pattern?

Technical Analysis Training :
What is White Marubozu: Bullish Reversal/Continuation Pattern?
White Marubozu is a bullish reversal/continuation pattern. It is a large white candlestick with no wicks on either end. It is considered to be an extremely bullish candle. The candle can lead to a continuation of the current uptrend or start of a bearish reversal.

This candle often occurs with high volume. So it becomes very crucial to determine whether it is a continuation or reversal.

Technical Analysis Training : What is Upside Tasuki Gap: Bullish Continuation Pattern?

Technical Analysis Training :
What is Upside Tasuki Gap: Bullish Continuation Pattern?
Upside Tasuki Gap is a bullish continuation pattern. Its a three day pattern. In this, a white candle gaps above the previous white candle. Third candle is a black candle, which opens inside the body of second candle.

Strategy: As its a bullish continuation pattern, one should trade in the preceding direction of the pattern. One can go long on the close of third candle.

Technical Analysis Training : What is Two Crows: Bearish Reversal Pattern?

Technical Analysis Training :
What is Two Crows: Bearish Reversal Pattern?
Two crows is a bearish reversal pattern. In this pattern, during an uptrend, after opening gap-up, market closes lower. Next day, a black candle occurs, which fills the gap, and thus Two Crows pattern is formed. The pattern is an indicator of eroding uptrend and a warning about a possible reversal in trend.

In this pattern, first candle is a long white candle, closing near its high. Second candle is a small black candle, which gaps away from the previous days close, and finishes near its low, which is still above the high of the first candle. Last candle opens inside the body of the second candle, and fills the gap between the first and second candle.

Strategy: Short positions can be initiated post successful breaking of low of third candle.

Technical Analysis Training : What is Tri-Star Bottom, Tri-Star Top?

Technical Analysis Training :
What is Tri-Star Bottom, Tri-Star Top?
Tri-Star is a candlestick pattern comprised of three dojis. This pattern can occur at market tops and bottoms. Three dojis represent indecision, leading to reversal. This pattern is usually accompanied with light volume. However, the reliability of this pattern is low, so it is advisable to wait for confirmation.

Tri-Star Bottom: In Tri-Star Bottom, middle doji is lower than the first and last.

Strategy: One should wait for the highest high to be exceeded successfully, before going long. Stop loss should be placed below the low of the middle doji.

Tri-Star Top: In Tri-Star Top, middle doji is higher than the first and last.

Strategy: One should wait for the lowest low to be exceeded successfully, before entering a short trade. Stop loss should be placed above the high of the middle doji.

Technical Analysis Training : What is Three White Soldiers: Bullish Reversal Pattern?

Technical Analysis Training :
What is Three White Soldiers: Bullish Reversal Pattern?
Three White Soldiers is a bullish reversal pattern and is opposite of three black crows. This pattern consists of three large consecutive white candles with close at or near their high levels. If the first candle appears at previous support level, then there may be more strength and gains.

It is good to trade the stock once third candle appears. The first two candles often provide support on pullbacks.

This pattern should be confirmed with previous support and resistance.

Technical Analysis Training : What is Three Stars in the South: Bullish Reversal Pattern?

Technical Analysis Training :
What is Three Stars in the South: Bullish Reversal Pattern?
Three stars in the South is a bullish reversal pattern. This pattern is seen near the end of the downtrend and consists of 3 candles. It shows deteriorating of selling pressure. In this pattern, first candle is a large black candle, having small or no upper shadow, but has a long lower shadow. Second candle is a smaller replica of previous candle. It opens gap up but ends lower. Second candle get engulfed completely by the first candle. Third candle gets engulfed completely by the second candle and is a black marubozu.

Strategy: Long positions can be initiated after the high of second candle is broken on upside.

Technical Analysis Training : What is Three Outside Up: Bullish Reversal Pattern?

Technical Analysis Training :
What is Three Outside Up: Bullish Reversal Pattern?
Three Outside Up pattern is another name for confirmed Bullish Engulfing Pattern. It is a bullish reversal pattern. In this pattern, first candle is a small black candle, closing at its low. Second candle engulfs completely the previous candle and closes near its high, thus creating a lon, white candle. Third candle breaks the high of the second candle and closes even higher.

Strategy: The high of the third candle should be broken successfully, before initiating new long positions

Technical Analysis Training : What is Three Outside Down: Bearish Reversal Pattern?

Technical Analysis Training :
What is Three Outside Down: Bearish Reversal Pattern?
Three Outside Down Pattern is another name for the Confirmed Bearish Engulfing Pattern. It is a bearish reversal pattern. In this pattern, first candle is a small white candle, which closes near its high. Second candle is a long black candle, which completely engulfs the first candle, closes near its low, thus creating a bearish engulfing pattern. Third candle breaks the low of the second candle, and closes near its low.

Strategy: Short positions can be initiated once low of the third candlestick is broken

Technical Analysis Training : What is Three Inside Down: Bearish Reversal Pattern?

Technical Analysis Training :
What is Three Inside Down: Bearish Reversal Pattern?
The Bearish Three Inside Down Pattern is another name for the Confirmed Bearish Harami Pattern. Its a bearish reversal pattern. In this pattern, first candle is a long white candle, which closes near its high. Second candle is a small black candle, which gaps away from the first candle and closes inside the body of the first candle, thus creating a harami pattern. Third candle exceeds the lows of the first two candles.

Strategy: Short positions can be created once the low of the third candle is broken successfully. Size of third candle often provides some indication to the strength of the reversal pattern.

Technical Analysis Training : What is Three Black Crows: Bearish Reversal Pattern?

Technical Analysis Training :
What is Three Black Crows: Bearish Reversal Pattern?
Three Black Crows is a bearish reversal pattern. The pattern is seen after an uptrend. It consists of three large, consecutive declining black candles. Criteria for this formation is that all the three candles should close near the lows and each candle should open within the prior candles' body. However, this has an exception when the first candle of this formation opens in a gap.

Traders should keep patience or wait for counter-trend rally before exiting long positions or entering into short position. Reason behind this is that the stock could have had a long pullback when the third candle forms. Hence, one should wait for a bounce before going short or exiting longs.

This pattern should be confirmed with previous support and resistance.