The upside tasuki gap is a bullish continuation trend and is the result of temporary profit taking in a strong upward market. In other words it indicates a continuation of a prevailing trend, even after a correction day, and it is considered to be a rare pattern. This pattern is considered to be similar to [...]
Continuation Patterns used in Japanese Candlestick Trading
When using Japanese Candlesticks as your leading technical indicators , you are alerted to possible price movements. Each candlestick allows you to detect price action that is indicative of either buying or selling pressure. There are 12 major patterns that investors use with the concept of reversal patterns in [...]
The matching low candlestick pattern is a reversal pattern, is bullish in nature, and is similar to the homing pigeon candlestick pattern except that the two days of this pattern close with equal closes in a downtrend. There are certain criteria that must be met in order to confirm that this pattern has occurred. First, [...]
The ladder bottom candlestick is a bullish reversal candlestick that is characterized by a downtrend. The current downtrend has been in place for some time and the bears are happy. The downtrend finishes with four consecutive black (or red) candles closing lower than the previous day however on the fourth day trades are higher. Still [...]
The homing pigeon candlestick is a bullish reversal pattern that indicates a weakening of the current downtrend. This candlestick consists of two black (or red) candlesticks where the stock price has closed down from the opening price. This candlestick pattern is the same as the harami candle except for the color of the second [...]
The stick sandwich is one the many secondary candlestick patterns that investors learn about when they learn about trading stock using technical analysis . This pattern can occur in both bull and bear markets and it is comprised of three candlesticks. Of these three candlesticks one candlestick has an opposite colored candlestick on both sides [...]
This pattern is characterized by two black marubozus. Marubozus are real bodies without shadows that extend from either end of their body. A black marubozu is a long black body with no shadows and it is considered to be a weak indicator as opposed to the white marubozu that is considered to be a [...]
The three white soldiers candlestick pattern is the bullish counterpart of the three black crows candlestick pattern and it is indicative of a reversal of the current downtrend. This pattern is consists of three large white (or green) candles each with a higher close than the previous candle indicating the start of an uptrend. It [...]
The three inside down candlestick pattern is a bearish reversal pattern that suggests that the previous trend is ending and it is another name for a confirmed bearish candlestick harami . This means that the first two candles are a bearish harami, and the third black (or red) candlestick is the confirmation of the [...]
The three inside up candlestick pattern is a bullish reversal pattern that suggests that the previous trend is ending and it is another name for a confirmed bullish harami candle . What this means is that the first two candles are a bullish harami, and the third white candlestick is the confirmation of the [...]
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