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Technical Analysis Training : What is One White Soldier: Bullish Reversal Pattern?
Technical Analysis Training :
What is One White Soldier: Bullish Reversal Pattern?
One White Soldier is a bullish reversal pattern. It appears on charts after a clear downtrend. In this pattern, first candle is a long black candle. Next candle opens above the closing level of previous candle, and closes near the high level of the day. The closing is also above the high of the previous day. Criteria for this pattern is that both the candles should be "long".
Long positions can be entered into once high level of the white candle is exceeded.
What is One White Soldier: Bullish Reversal Pattern?
One White Soldier is a bullish reversal pattern. It appears on charts after a clear downtrend. In this pattern, first candle is a long black candle. Next candle opens above the closing level of previous candle, and closes near the high level of the day. The closing is also above the high of the previous day. Criteria for this pattern is that both the candles should be "long".
Long positions can be entered into once high level of the white candle is exceeded.
Technical Analysis Training : What is One Black Crow: Bearish Reversal Pattern?
Technical Analysis Training :
What is One Black Crow: Bearish Reversal Pattern?
One Black Crow is a bearish reversal pattern. It appears on charts after a clear uptrend. In this pattern, first candle is a long white candle. Next candle opens below the closing level of previous candle and it closes below the low level of the white candle. Criteria for this pattern is that both the candles should be "long".
Strategy: Short positions can be entered into once low of the black candle is exceeded.
What is One Black Crow: Bearish Reversal Pattern?
One Black Crow is a bearish reversal pattern. It appears on charts after a clear uptrend. In this pattern, first candle is a long white candle. Next candle opens below the closing level of previous candle and it closes below the low level of the white candle. Criteria for this pattern is that both the candles should be "long".
Strategy: Short positions can be entered into once low of the black candle is exceeded.
Technical Analysis Training : What is Long-legged Doji: Bullish Reversal, Bearish Reversal?
Technical Analysis Training :
What is Long-legged Doji: Bullish Reversal, Bearish Reversal?
Long-legged doji is a candle with long upper and lower shadows and a small real body. The pattern shows that there is an indecision between the buyers and the sellers, and that the market is approaching transition period.
Long positions can be taken in case of Bullish Long Legged Doji, once high of the candle is exceeded.
Shorts can be initiated once the low of the candle is broken, in case of Bearish Long Legged Doji.
Bullish:
Bullish Long Legged Doji has very long shadows on both the ends. The patterns shows indecision of buyers and sellers. It is a bullish reversal pattern. In this pattern, market is in a bearish mood and is in downtrend. Then, a Long Legged Doji appears, which gaps in the current trend.
This pattern requires confirmation by way of opposite move to the prior trend on next day.
Bearish:
Bearish Long Legged Doji has very long shadows on both the ends. The pattern shows indecision of buyers and sellers. It is a bearish reversal pattern. In this, market is in a bullish mood and is in uptrend. Then, a Long Logged Doji appears, which gaps in the current trend.
What is Long-legged Doji: Bullish Reversal, Bearish Reversal?
Long-legged doji is a candle with long upper and lower shadows and a small real body. The pattern shows that there is an indecision between the buyers and the sellers, and that the market is approaching transition period.
Long positions can be taken in case of Bullish Long Legged Doji, once high of the candle is exceeded.
Shorts can be initiated once the low of the candle is broken, in case of Bearish Long Legged Doji.
Bullish:
Bullish Long Legged Doji has very long shadows on both the ends. The patterns shows indecision of buyers and sellers. It is a bullish reversal pattern. In this pattern, market is in a bearish mood and is in downtrend. Then, a Long Legged Doji appears, which gaps in the current trend.
This pattern requires confirmation by way of opposite move to the prior trend on next day.
Bearish:
Bearish Long Legged Doji has very long shadows on both the ends. The pattern shows indecision of buyers and sellers. It is a bearish reversal pattern. In this, market is in a bullish mood and is in uptrend. Then, a Long Logged Doji appears, which gaps in the current trend.
Technical Analysis Training : What is Ladder Top: Bearish Reversal Pattern?
Technical Analysis Training :
What is Ladder Top: Bearish Reversal Pattern?
Ladder Top is a bearish reversal pattern and it appears at the end of uptrend. It consists of 5 candles. The pattern gives early signs of deterioration of uptrend.
First three candles of this pattern are three long white candles, which resembles the three white soldiers formation. Fourth day candle closes higher, but with a long lower shadow, which goes into the body of the third candle. Fifth day candle is a long black one which opens below the body of the fourth day candle.
Strategy: Short positions can be entered into once low of fifth candle is exceeded.
What is Ladder Top: Bearish Reversal Pattern?
Ladder Top is a bearish reversal pattern and it appears at the end of uptrend. It consists of 5 candles. The pattern gives early signs of deterioration of uptrend.
First three candles of this pattern are three long white candles, which resembles the three white soldiers formation. Fourth day candle closes higher, but with a long lower shadow, which goes into the body of the third candle. Fifth day candle is a long black one which opens below the body of the fourth day candle.
Strategy: Short positions can be entered into once low of fifth candle is exceeded.
Technical Analysis Training : What is Ladder Bottom: Bullish Reversal Pattern?
Technical Analysis Training :
What is Ladder Bottom: Bullish Reversal Pattern?
Ladder Bottom is a bullish reversal pattern and it appears at the end of downtrend. It consists of 5 candles. The pattern gives early signs of deterioration of downtrend.
First three candles of this pattern are long black candles, which resembles the three black crows formation. Fourth day candle closes lower, but with a long upper shadow, which goes into the body of the third candle. Fifth day candle is a long white one which opens above the body of the fourth day candle.
Strategy: Long positions can be entered into once high of the fifth candle is exceeded.
What is Ladder Bottom: Bullish Reversal Pattern?
Ladder Bottom is a bullish reversal pattern and it appears at the end of downtrend. It consists of 5 candles. The pattern gives early signs of deterioration of downtrend.
First three candles of this pattern are long black candles, which resembles the three black crows formation. Fourth day candle closes lower, but with a long upper shadow, which goes into the body of the third candle. Fifth day candle is a long white one which opens above the body of the fourth day candle.
Strategy: Long positions can be entered into once high of the fifth candle is exceeded.
Technical Analysis : What is Kicking pattern: Bullish Reversal, Bearish Reversal pattern?
What is Kicking pattern: Bullish Reversal, Bearish Reversal pattern?
Kicking pattern is a two-candle reversal pattern. On the chart, it seems as if price is kicking away the current trend, hence the name, Kicking.
Bullish kicking pattern is comprised of a black marubozu followed by a white marubozu. This pattern is seen when
a) a marubozu of white follows a marubozu of black, and
b) a gap between these marubozu
Strategy: In bullish kicking pattern, long positions can be entered into once high of the white marubozu is exceeded
Bearish kicking pattern is comprised of a white marubozu followed by a black marubozu. This pattern is seen when
a) a marubozu of black follows a marubozu of white, and
b) a gap between these marubozu
Strategy: In bearish kicking pattern, short positions can be entered into once low of black marubozu is exceeded.
Kicking pattern is a two-candle reversal pattern. On the chart, it seems as if price is kicking away the current trend, hence the name, Kicking.
Bullish kicking pattern is comprised of a black marubozu followed by a white marubozu. This pattern is seen when
a) a marubozu of white follows a marubozu of black, and
b) a gap between these marubozu
Strategy: In bullish kicking pattern, long positions can be entered into once high of the white marubozu is exceeded
Bearish kicking pattern is comprised of a white marubozu followed by a black marubozu. This pattern is seen when
a) a marubozu of black follows a marubozu of white, and
b) a gap between these marubozu
Strategy: In bearish kicking pattern, short positions can be entered into once low of black marubozu is exceeded.
Technical Analysis : What is Inverted Hammer: Bullish Reversal Pattern?
What is Inverted Hammer: Bullish Reversal Pattern?
Inverted Hammer is a bullish reversal pattern. This pattern is characterized by a long upper shadow and a small real body, appearing after a long black real body. It resembles with Bearish Shooting Star.
This pattern appears in a downtrend. In this pattern, a long black candle appears on first day. On second day, a small real body appears, which forms at the lower end of range. Second day's candle has upper shadow, which is at least twice as long as the real body and does not have lower shadow. Colour of the real body is not of much importance.
Strategy: A confirmation can be seen in the form of next day opening above hammer's body of a white candle with higher prices. Long positions can be initiated post confirmation.
Inverted Hammer is a bullish reversal pattern. This pattern is characterized by a long upper shadow and a small real body, appearing after a long black real body. It resembles with Bearish Shooting Star.
This pattern appears in a downtrend. In this pattern, a long black candle appears on first day. On second day, a small real body appears, which forms at the lower end of range. Second day's candle has upper shadow, which is at least twice as long as the real body and does not have lower shadow. Colour of the real body is not of much importance.
Strategy: A confirmation can be seen in the form of next day opening above hammer's body of a white candle with higher prices. Long positions can be initiated post confirmation.
Technical Analysis : What is Homing Pigeon: Bullish Reversal Pattern?
What is Homing Pigeon: Bullish Reversal Pattern?
Homing Pigeon is a bullish reversal pattern. It comprises of two black candles. The pattern appears after a clear downtrend. First candle is a long black candle. Second candle is an inside bar, which is also a black candle. Second candle closes inside the body of the first candle.
This pattern is a sign that current trend may be losing steam.
Long positions can be entered into after the high of the first candle is exceeded. Stop loss can be placed below the low of the first candle.
Homing Pigeon is a bullish reversal pattern. It comprises of two black candles. The pattern appears after a clear downtrend. First candle is a long black candle. Second candle is an inside bar, which is also a black candle. Second candle closes inside the body of the first candle.
This pattern is a sign that current trend may be losing steam.
Long positions can be entered into after the high of the first candle is exceeded. Stop loss can be placed below the low of the first candle.
Technical Analysis : What is Hanging Man: Bearish Reversal Pattern?
What is Hanging Man: Bearish Reversal Pattern?
Hanging Man is a bearish reversal pattern, which occurs at the top of a trend. This pattern appears after or during an uptrend. It is a single candlestick pattern. It resembles with Bearish Dragonfly Doji. The only difference is doji has same opening and closing while Hanging Man has a small real body at the upper end. Colour of Hanging Man is not important. However, it is considered as more potent, if its colour is black. Lower shadow of Hanging man should be twice as long as real body. There should be very little or no upper shadow.
Strategy: Hanging Man indicates end of an uptrend, hence, short positions can be initiated post confirmation by way of gap down opening or a lower close or a black candle the next day of Hanging Man day.
Hanging Man is a bearish reversal pattern, which occurs at the top of a trend. This pattern appears after or during an uptrend. It is a single candlestick pattern. It resembles with Bearish Dragonfly Doji. The only difference is doji has same opening and closing while Hanging Man has a small real body at the upper end. Colour of Hanging Man is not important. However, it is considered as more potent, if its colour is black. Lower shadow of Hanging man should be twice as long as real body. There should be very little or no upper shadow.
Strategy: Hanging Man indicates end of an uptrend, hence, short positions can be initiated post confirmation by way of gap down opening or a lower close or a black candle the next day of Hanging Man day.
Technical Analysis : What is Hammer: Bullish Reversal Pattern?
What is Hammer: Bullish Reversal Pattern?
Hammer is a bullish reversal pattern, which occurs at the bottom of a trend. This pattern appears after or during a downtrend. It is a single candlestick pattern. It resembles with Bullish Dragonfly Doji. The only difference is doji has same opening and closing while Hammer has a small real body at the upper end. Colour of Hammer is not important. However, it is considered as more potent, if its colour is white. Lower shadow of Hammer should be twice as long as real body. There should be very little or no upper shadow.
Strategy: Long positions can be initiated if there is a large gap up or a higher close the next day of Hammer, which is considered as a confirmation of reversal of trend.
Hammer is a bullish reversal pattern, which occurs at the bottom of a trend. This pattern appears after or during a downtrend. It is a single candlestick pattern. It resembles with Bullish Dragonfly Doji. The only difference is doji has same opening and closing while Hammer has a small real body at the upper end. Colour of Hammer is not important. However, it is considered as more potent, if its colour is white. Lower shadow of Hammer should be twice as long as real body. There should be very little or no upper shadow.
Strategy: Long positions can be initiated if there is a large gap up or a higher close the next day of Hammer, which is considered as a confirmation of reversal of trend.
Technical Analysis : What is Four Price Doji?
What is Four Price Doji?
Four price doji is a candlestick where open, high, low, and close are all the same. This candle reflects the highest extent of indecision between bulls and bears. This candle is normally seen on low trading volume. It often appears in pre-market and after hours trading.
It is advisable to avoid this candle and not to place too much importance on it.
Four price doji is a candlestick where open, high, low, and close are all the same. This candle reflects the highest extent of indecision between bulls and bears. This candle is normally seen on low trading volume. It often appears in pre-market and after hours trading.
It is advisable to avoid this candle and not to place too much importance on it.
Technical Analysis : What is Dragonfly Doji: Bearish Reversal Pattern?
What is Dragonfly Doji: Bearish Reversal Pattern?
Dragonfly doji is a bearish reversal pattern. It is opposite to the gravestone doji. In this pattern, open, high, and close are at the high of the day.
Strategy: Long positions can be taken once high of the candle is exceeded.
Dragonfly doji is a bearish reversal pattern. It is opposite to the gravestone doji. In this pattern, open, high, and close are at the high of the day.
Strategy: Long positions can be taken once high of the candle is exceeded.
Technical Analysis : What is Downside Tasuki Gap: Bearish Continuation Pattern?
What is Downside Tasuki Gap: Bearish Continuation Pattern?
Downside Tasuki Gap is a three day bearish continuation pattern. It starts with a black candle which gaps below the previous black candle. The third candle is a white candle opening inside the body of the second red candle.
One can go short on the close of the third candle. The trade should be in the direction of the defined trend, which is downtrend in this case.
Downside Tasuki Gap is a three day bearish continuation pattern. It starts with a black candle which gaps below the previous black candle. The third candle is a white candle opening inside the body of the second red candle.
One can go short on the close of the third candle. The trade should be in the direction of the defined trend, which is downtrend in this case.
Technical Analysis : What is Dark Cloud Cover: Bearish Reversal Pattern?
What is Dark Cloud Cover: Bearish Reversal Pattern?
Dark Cloud Cover is a bearish reversal pattern. It appears in an uptrend. This pattern is comprised of 2 candles. First candle is a long white one, accompanied with heavy volume. Next day's candle opens above the previous day's high. But it closes below the mid-point of the first candle. However, the closing of second candle is not below the opening level of white candle.
Strategy: Short positions can be created once the low of the first candle is exceeded. Stop loss can be placed above the high of second candle.
Dark Cloud Cover is a bearish reversal pattern. It appears in an uptrend. This pattern is comprised of 2 candles. First candle is a long white one, accompanied with heavy volume. Next day's candle opens above the previous day's high. But it closes below the mid-point of the first candle. However, the closing of second candle is not below the opening level of white candle.
Strategy: Short positions can be created once the low of the first candle is exceeded. Stop loss can be placed above the high of second candle.
Technical Analysis : What is Closing Marubozu?
What is Closing Marubozu?
Closing Marubozu candles has no shadow extending from the close. Closing Marubozu candles closes at the high or low of the day, depending on the closing of the stock. It means, if the stock closes up, it closes at its high price of the day and if it closes down, then its closing price is equal to its low price for the day.
White Closing Marubozu: It is considered as bullish candle.
Black Closing Marubozu: It is considered as bearish
Closing Marubozu candles has no shadow extending from the close. Closing Marubozu candles closes at the high or low of the day, depending on the closing of the stock. It means, if the stock closes up, it closes at its high price of the day and if it closes down, then its closing price is equal to its low price for the day.
White Closing Marubozu: It is considered as bullish candle.
Black Closing Marubozu: It is considered as bearish
Technical Analysis : What is Bullish Separating Line: Bullish Continuation Pattern?
What is Bullish Separating Line: Bullish Continuation Pattern?
Bullish Separating Line is a bullish continuation pattern and is opposite of Bearish Separating Line. In this pattern, first candle is a long black candle. Second candle opens gap up at first candles' open level and closes up, thus forming a long white candle.
This pattern is traded during a strong uptrend. Long positions can be initiated after the closing of second candles. Traders should make sure that both the candles are of decent size.
Bullish Separating Line is a bullish continuation pattern and is opposite of Bearish Separating Line. In this pattern, first candle is a long black candle. Second candle opens gap up at first candles' open level and closes up, thus forming a long white candle.
This pattern is traded during a strong uptrend. Long positions can be initiated after the closing of second candles. Traders should make sure that both the candles are of decent size.
Technical Analysis : What is Bullish Rising Three Method: Bullish Continuation Pattern?
What is Bullish Rising Three Method: Bullish Continuation Pattern?
Bullish Rising Three Method is a continuation candlestick pattern. It is ideally a five candle pattern in which second, third, and fourth candles are opposite in color of the first candle.
The first candlestick, should be a strong white candle with a wide spread and closing near the day's high. The second, third, and fourth candles should be small black candles which should not break below the lows of the first candle. The pullback by the three candles should be controlled in nature.
This pattern works best for day trading. It is considered to be reliable if three candlesticks consolidation occur right above a whole number. The last candle is another large white candle that rises above the highs of the first candle.
Bullish Rising Three Method is a continuation candlestick pattern. It is ideally a five candle pattern in which second, third, and fourth candles are opposite in color of the first candle.
The first candlestick, should be a strong white candle with a wide spread and closing near the day's high. The second, third, and fourth candles should be small black candles which should not break below the lows of the first candle. The pullback by the three candles should be controlled in nature.
This pattern works best for day trading. It is considered to be reliable if three candlesticks consolidation occur right above a whole number. The last candle is another large white candle that rises above the highs of the first candle.
Technical Analysis : What is Bullish Meeting Lines: Bullish Reversal Pattern?
What is Bullish Meeting Lines: Bullish Reversal Pattern?
Bullish Meeting Lines pattern is a bullish reversal pattern. It happens in a downtrend. In this pattern, first candle is black, correlating the ongoing downtrend. Second candle opens at a new low, but closes at previous day's closing level.
Strategy: Traders can take long position only after the high of the first candle is exceeded. Stop loss should be placed below the low of second candle.
Bullish Meeting Lines pattern is a bullish reversal pattern. It happens in a downtrend. In this pattern, first candle is black, correlating the ongoing downtrend. Second candle opens at a new low, but closes at previous day's closing level.
Strategy: Traders can take long position only after the high of the first candle is exceeded. Stop loss should be placed below the low of second candle.
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