Any trader worth his or her salt knows that, when relying on a forecast provided by Japanese candlesticks, it is always best to wait for confirmation. By watching what happens right after a signal pops up, you can verify the reliability of the pattern. Thus, if you can afford to hold your horses for another trading period, you can increase your confidence and peace of mind before making your trade. Some signals, like the Three Outside Down candlestick pattern, are built upon the concept of confirmation. After all, when it comes down to it, the Three Outside Down is just a confirmed Bearish Engulfing signal.
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Some candlestick patterns bear poetic or engaging titles – Evening Star, Dark Cloud Cover, Spinning Top, Falling Window, Morning Star – while others are decidedly less appealing. For example, consider the title of the Three Outside Up candlestick pattern. Though not ugly, the title feels disjointed and awkward, and it doesn’t convey a lovely image or idea. Yet despite its middling name, this bullish reversal pattern can help you forecast a change on the horizon. To learn more about the Three Outside Up candlestick pattern, please scroll down.
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Who says three is crowd? With the right candlesticks in the right formation, three candles can signify a reversal in the market. Today we’re exploring the Three Inside Down candlestick pattern, which could also be described as a Bearish Harami with a third candle to confirm the signal’s intimation. Want to learn more about this simple but effective pattern? Scroll down to discover its formation and meaning.
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Inside out, upside down, backwards, forwards . . . Even when candlestick patterns go topsy-turvy, they have something to say about the state of the market. The Three Inside Up candlestick pattern is a reversal signal composed of a Bullish Harami pattern and a confirming third candle. To better understand this pattern (to turn it right-side out, you might say), scroll down to learn about its formation and meaning.
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Last Updated: June 20, 2016
Will you do me a favor? Picture a punt kick. A football player drops a ball, kicks it forcefully before it hits the ground, and then watches (along with crowds of cheering spectators) as the ball flies up toward the sky. Now, as you try to identify and memorize the Bullish Kicker candlestick pattern, use that image as a reference. Somewhat like a punt kick, the price drops down and then kicks back up with a gap forming between the first and second candle (i.e., the grass and the ball), indicating an abrupt change in sentiment. To learn more about this kicky candlestick signal, please scroll down . . .
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They’re two of a kind, a perfect pair, practically twins: the two white candlesticks in the Bearish Side by Side White Lines pattern are the same color and roughly the same size. But despite their aesthetic similarities, they’re actually trying to tell investors about a moment of discord. For two days in a row, the exact same thing has happened. No progress has been made. What’s going on? To better understand what the Bearish Side by Side White Lines pattern is trying to say, scroll down.
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The Side by Side White Lines candlestick pattern contains twins: two candles of the same color and height standing side by side. Although visually consistent and uniform, this duo actually represents a struggle. The market opened at the same price two days in a row and closed at the same price two days in a row. Why can’t the bears successfully squash the uptrend? To better understand the shape and significance of the Bullish Side by Side White Lines pattern, keep reading.
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Known in Japanese as iki chigai sen, which means “lines that move in opposite directions,” the Bearish Separating Lines pattern is a tale of two candlesticks. Although they share the same starting point, they veer off in opposing directions. The first, which is white or green, soars upward from the starting point. The second, which is black or red, plummets. To learn more about this simple but scarce continuation pattern, review the information and advice we’ve compiled below.
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Offhand, if you had to guess, based purely on the name, I bet that you would think the Separating Lines pattern heralds a reversal. After all, a separation hints at a change in sentiment, which would lead one to believe that the tables have turned. Have the bears passed the reins to the bulls or vice versa? In fact, no. The Bullish Separating Lines pattern is a continuation signal in which the bears briefly control the market before the bulls sweep in, continuing the prior uptrend.
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The Bearish Mat Hold candlestick pattern tells the story of powerful commanders (the bears) and weak but determined subordinates (the bulls). Although the bears are firmly in control, the bulls attempt to overturn their rule for three ineffective days. In the end, the bears win the fight, seizing the reins once more and allowing the downtrend to continue. Rare and complex but usually reliable, the Bearish Mat Hold deserves a spot in your arsenal.
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