Bearish Three Line Strike

One . . . Two . . . Three strikes – you're out! This phrase can strike anger, joy, or even fear into the heart of a baseball player (depending on the situation). Three chances for a hit were squandered, and the opportunity has been lost. In the Bearish Three Line Strike pattern, on the other hand, those three short striking candlesticks are followed by a longer candle with the opposing sentiment. The arrangement of candles doesn't indicate a "strike out," as you might expect. Following a downtrend, the trio of descending black candles and the subsequent white candle actually demonstrate that a continuation of the current trend is probable. Continue Reading

Bullish Three Line Strike

When you hear the term "three strikes," you probably think of baseball. Three strikes and you're out! Depending on which team you're rooting for and who is at bat, that third strike could be frustrating or gratifying. When it comes to Japanese candlesticks, there are two forms of Three Line Strikes, one bullish and one bearish. Today we're focusing on the Bullish Three Line Strike, a rare candlestick pattern that forms during an uptrend. Composed of four candles – three white and one black – this signal indicates that a continuation of the current trend is likely.
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Short Day Candlestick

For all the talk of long days – "I had such a long day at work!" – no one ever seems to talk about short days. A short day zips by in a flash. Often this sort of fleeting day occurs when the day is like any other, "business as usual." You may feel like you're on autopilot, going through the motions without much thought or passion. In the world of Japanese candlesticks, however, a Short Day candlestick is a simple signal composed of just one candle. Like the Doji and the Long Day, it isn't very important on its own. Nevertheless, it can play a part in larger and more influential patterns.
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Shaved Bottom Candlestick

As we discussed in our previous blog post about Long Lower Shadow candlesticks, a Japanese candlestick's lower wick (also called its shadow or tail) plays an important role in conveying the price movement of the interval. It shows the interval's lowest price, while the bottom of the candle shows the opening price (in a bullish candle) or closing price (in a bearish candle). So what happens if the lower wick is shaved off? This means that the interval's opening/closing price (depending on the candle's bullish/bearish sentiment) is the same as the lowest price. In other words, you have a Shaved Bottom candlestick on your hands.
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Long Lower Shadow Candlestick

Even if they don't have Peter Pan's sly and scheming shadow, you can learn a lot about someone's shadow from its size and shape: the position of the sun, the time of day, the person's body position, the surrounding sources of light, and more. In the world of Japanese candlesticks, shadows go by several different names, including tails and wicks, but whichever term you prefer, it is important to understand the significance of a long lower tail. So today, we're exploring a very simple signal: the Long Lower Shadow candlestick. Whether on its own or acting as a part of a larger pattern, this signal can help you understand many other candlesticks.
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Long Day Candlestick

What do you like to do after a long day? Kick your feet up at home? Go for a run to de-stress? Head out on the town for a dinner with friends? Relax in bed with a good book and a glass of wine? Whatever your preference, I would be willing to bet that you would do something different if a Long Day candlestick appeared on your Japanese candlestick chart. One of the simplest signals around, much like a Doji, the Long Day candlestick is not particularly influential until you combine it with other candles to form a larger pattern. Nevertheless, in the right context, it can pack a punch. So today, we're exploring its formation and meaning . . .
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Bearish Meeting Lines Candlestick Pattern

Two lines can meet in a number of ways: they might cross once, they might intersect multiple times, or they might form a single longer line. A pair of lines can also meet in a Japanese candlestick pattern. For example, if two side-by-side candles close at the same price, they form a Meeting Lines signal. We have already discussed the Bullish Meeting Lines pattern, which forms during a downtrend and predicts a reversal. However, there is also a Bearish Meeting Lines candlestick pattern, which, as you might expect, forms during an uptrend. This is an uncomplicated and straightforward pattern—as scarce as hen's teeth (i.e., quite rare), yet not especially reliable either. To be sure that you don't mistake this pattern for another (or vice versa), review the Bearish Meeting Lines candlestick pattern below.
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Japanese Candlestick Bullish Reversal Patterns

As any trader knows, the market can change at a moment's notice—or without any notice at all! Just when a downtrend becomes familiar, for example, the bulls might take the reins and thrust the price upward again. To predict these occurrences, you can keep an eye out for Japanese candlestick bullish reversal patterns. Some are complex, while others are exceedingly simple. Some are reliable, while others are capricious and might slip through your fingers. To get a firm handle on the market, review the Japanese candlestick bullish reversal patterns below and add them to your repertoire.
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Bullish Meeting Lines Pattern

The meeting of minds, the meeting of waters . . . Amazing things can happen when two great powers meet. Although the meeting of lines in a candlestick pattern isn't exactly momentous, it is both simple and rare. The Bullish Meeting Lines pattern involves just two candles: one black and one white. This pair of candlesticks meets at the close, meaning that the closing price of the second (bullish) candle is equal to the closing price of the first (bearish) candle. However, because the Bullish Meeting Lines pattern is similar to other signals, as we will discuss below, it can be difficult to spot—so take your time and keep an eye on the details.
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Thrusting Line Candlestick Pattern

Although the On Neck signal, the In Neck signal, and the Thrusting Line signal are very similar in structure (there is a white candle that follows a black candle and opens below it), each pattern takes the price movement one step further than the last. It starts with the On Neck, in which the white candle closes below the black candle's close. Then, in the In Neck, the white candle closes at or slightly above the black candle's close. So where do you think the Thrusting Line pattern's white candle closes? You guessed it! It closes above the black candle's close (though below the body's midpoint). With each pattern, the white candle inches ever so slightly upward. Today we're focusing on the Thrusting Line candlestick pattern, where the white candle reaches its greatest height. Scroll down to learn how to spot and interpret this bearish continuation pattern.
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