Last Updated: April 7, 2017
If you ask me, the best names for candlestick patterns are the ones that spark your imagination. The Falling Window is a perfect example. When you hear that creative title, you can imagine a window dropping or sliding or even melting to the ground like one of Dalí’s clocks. Perhaps surprisingly, the lovely name refers to a very simple (but still significant) price action. To discover the formation and value of the Falling Window candlestick pattern, please scroll down.
Last Updated: March 27, 2017
There is a positive and a negative to nearly every situation. We’ve already discussed the upside of a Tasuki Gap, so now it’s time for the downside. Occurring at the end of a distinct downtrend, the Downside Tasuki Gap is a bearish continuation pattern. Like the Upside Tasuki Gap, it isn’t particularly common or dramatic, but why not add it to your repertoire regardless? To help you get started, today we’re exploring the formation of the Downside Tasuki Gap candlestick pattern and the meaning it conveys.
Last Updated: March 17, 2017
Although there may not be an upside to every situation, the presence of an Upside Gap Tasuki surely counts as an upside during an otherwise lackluster market day . . . right? Yes, indeed. The Upside Gap Tasuki is a bullish continuation pattern that occurs in the midst of a strong uptrend. Although this isn’t a particularly common or influential candlestick pattern, it’s certainly worth adding to your Japanese candlestick repertoire. To learn more about its formation and what it says about the current state of the market, simply scroll down.
Last Updated: March 2, 2017
It doesn’t matter if the candles are short or tall. It doesn’t matter if they’re black or white. In fact, it doesn’t even matter if there are two, five, or even ten candles! Just like the Tweezer Top candlestick pattern that we discussed earlier this month, the Tweezer Bottom candlestick pattern is formed by multiple candles in any color or size. The only crucial, distinguishing feature of this signal is that all of the candles involved must have the same low point. To learn more about the Tweezer Bottom’s formation and meaning, simply scroll down.
Last Updated: February 20, 2017
Most Japanese candlestick patterns require specific candles in order to exist at all. For example, they might call for a black candle or a white candle, a tall candle or a short candle, a candle with no wicks or a candle with two wicks, or some combination thereof. The Tweezer Top candlestick pattern is unique in that it only requires that the two (or more) candles involved have the same high point. Beyond that trait, the candles can look quite different. This distinguishing feature means that the Tweezer Top candlestick pattern will appear in a different form nearly every time you see it. Interested in learning more about this shape-shifting signal? Let’s dig in . . .
Last Updated: January 31, 2017
Star light, star bright, first star I see tonight . . . . Unfortunately, this hopeful nursery rhyme doesn’t apply in the world of swing trading, where an Evening Star candlestick pattern indicates that very bad things are on the horizon. When traders spot this pattern, which is a top reversal signal, they know that lower stock prices may soon be on the way. However, the Evening Star candlestick pattern is a tricky pattern to identify, so investors must proceed with caution when they think they’ve sighted it. Scroll down to learn a little more about this hard-to-spot signal.
Last Updated: January 20, 2017
The three-card monte, three ghosts in A Christmas Carol, three-legged races, three-ring circuses, the Holy Trinity, the primary colors, the number of sides and corners in a triangle, three strikes before you’re out . . . we’ve already discussed the significance and prominence of the number three in our previous blog post, but it’s worth restating just how influential and common this numeral is. Whether three is your lucky number or not, we urge you to add the Falling Three Methods pattern to your Japanese candlestick repertoire. To learn what this signal looks like and what it means for the market, simply scroll down.
Last Updated: December 30, 2016
Looking for a bull? Think you’ve spotted a bear? In either case, you might need to learn about the Harami candlestick pattern. It comes in two different varieties: the bearish reversal pattern (which occurs after an uptrend) and the bullish reversal pattern (which occurs after a downtrend). This common candlestick signal is also very easy to spot. To learn how to identify the Harami, the differences between bullish and bearish varieties, and what the Harami candlestick pattern signifies, please scroll down . . .
Last Updated: December 19, 2016
There’s just something about the number three: the Three Bears, the rule of three, the Three Billy Goats Gruff, the Three Stooges, the magic number on Schoolhouse Rock, the number of times one must say Beetlejuice . . . Don’t believe me? Read that first bit twice more. After all, the third time’s the charm! If you find threes to be particularly lucky, you will certainly be interested in learning about the Rising Three Methods pattern, a bullish continuation signal that includes three short candles and two long ones. To learn more about this pattern’s formation and meaning, please scroll down in one . . . two . . . three!
Last Updated: November 28, 2016
You know what a doji looks like, right? And I bet you’re familiar with the Harami, another essential signal, as well. If you know those two basic signals, spotting and understanding a Harami Cross candlestick pattern should be a cinch. This signal resembles the classic Harami, except the very small second candle of the Harami is replaced by a simple doji that resembles a cross sign. Depending on the price movement and the current trend, the Harami Cross can be bullish or bearish. However, no matter what its color and no matter what its trend, do not risk ignoring this pivotal pattern.