Stick Sandwich Candlestick Pattern

What would you like—PB&J, grilled cheese, French dip, caprese, muffuletta, BLT . . . ? Or how about a Stick Sandwich? No, it’s not as appetizing as your other options, but the Stick Sandwich is the only sandwich to boast an important role within the world of Japanese candlesticks. Formed by three candles, the Stick Sandwich candlestick pattern can have both bullish and bearish implications, depending on the colors of the candlesticks. If you aren’t quite ready to add this candlestick pattern to your menu, scroll down to learn what the Stick Sandwich looks like and what it means for interested investors.
Continue Reading

Abandoned Baby Candle Pattern

In the real world, an abandoned baby is a startling and terrible sight. In the world of candlesticks, it is a very rare reversal signal. Sometimes the abandoned baby will be a bear (or should I say a cub?), and other times it will be a bull (a calf, if you like). Either way, it signals that the current trend will soon reverse. Happily, its formation fits its name quite well—a tiny doji on its own (the baby), the surrounding candles a step higher or lower (the parents)—so it is easy to identify. If you would like to understand the Abandoned Baby candle pattern, you’re in the right place. Today we’re discussing how to spot it, what it means, and why you shouldn’t ignore its presence.
Continue Reading

Three White Soldiers

Left, left, left, right, left! Just as soldiers once marched onto the battlefield, the Three White Soldiers candlestick pattern marches upward, creating a staircase-like structure as the price climbs higher and higher. Each candle in this trio of ascending candlesticks opens within the previous day’s body and closes above the previous day. When Three White Soldiers march into a trading session, traders know that a strong reversal has occurred and that the price can be expected to continue its ascension. If you’re ready to learn more about these soldiers’ formation and message, scroll down for all the details.
Continue Reading

Marubozu Candlestick Pattern

Simplicity. It’s a lovely word and a very calming concept. After studying lots of complex candlestick patterns, it’s always nice to get back to the basics. Much like the Doji, the Marubozu candlestick pattern is a one-candle, easy-to-spot signal with a very clear meaning. It comes in both a bearish (red or black) and a bullish (green or white) form, and it commands attention with its long and sturdy shape. To learn more about how Marubozu candlesticks form, why they form, and what they can tell you about the current state of the market, please scroll down.
Continue Reading

Bullish Belthold Candlestick

Although I can’t be sure, I like to imagine that the name of the Bullish Belt Hold candlestick was created as a metaphor for the relationship between a pair of pants and a belt. During a trading session, the price is continuing to fall downward (like a pair of pants), but the presence of a Bullish Belt Hold (a belt) signals that the price (the pants) will be pulled back up. If nothing else, it’s a helpful mnemonic device! If you’re interested in learning more about this bullish candlestick pattern, simply scroll down. We can help you identify it, interpret it, and confirm its significance.
Continue Reading

Dragonfly and Gravestone Doji

Just because a thing is small, that does not mean it is insignificant. Take the Doji candlestick signal! Typically resembling a plus sign or a cross, this small signal (formed of just one candlestick and lacking a body) is still important. In fact, it has the power to change traders’ buying and selling strategies. And when a basic Doji lacks an upper or lower shadow, it becomes either a Dragonfly or a Gravestone Doji. Although similar in appearance, the Dragonfly and the Gravestone have very different implications. To learn how to identify and translate these opposing signals, please scroll down . . .

Continue Reading

Spinning Top Candlestick Pattern

Did you ever play with spinning tops as a child? Simple but amusing, these tiny toys have existed since antiquity. If they’re spun precisely and very quickly, they remain balanced on their tips due to inertia. In the world of Japanese candlesticks, spinning tops were the inspiration for the naming of the Spinning Top candlestick pattern. Similar in shape to its toy counterpart, with a short body and two long wicks, the Spinning Top is a common but important candlestick signal. To learn more about this unostentatious candlestick, please scroll down . . .
Continue Reading

Dark Cloud Cover Pattern

Do you have an umbrella handy? When dark clouds are on the horizon, you know that a downpour could soon be on the way. Similarly, when you spot the Dark Cloud Cover pattern on a Japanese candlestick chart, you need to anticipate the arrival of a bearish reversal. This candlestick pattern is somewhat easy to spot because its formation clearly reflects its name: at the end of an uptrend (i.e., a sunny day), a black candle appears (a “dark cloud”), heralding a reversal. Let’s learn a little more about this ominous signal . . .
Continue Reading

Swing Trading Advice for Beginners

Learning to swing trade is, unfortunately, not as simple as jumping on a swing at the park for the first time. There are strategies to learn, options to explore, and an entire language of trading terms that you’ll need to become familiar with. However, with hard work, persistence, and a bit of luck, you can become a successful swing trader. If you’re interested in learning the tricks of the trade, scroll down to discover some valuable swing trading advice for beginners. These tips will come in handy when you first dip your toe into the world of investing.
Continue Reading

Shooting Star Candlestick Pattern

Second star to the right and straight on till morning! Well, not quite, Peter Pan. Those directions will take you to Neverland, but if you’re looking for a Shooting Star candlestick pattern, you’ll need better directions. This bearish reversal signal, which looks uncannily like the Inverted Hammer, is found at the end of an uptrend and heralds a falling price. It is formed by a single candle with a short body, little or no lower shadow, and a very long upper shadow. If you’re wondering exactly what a Shooting Star candlestick pattern looks like or what it might mean for future prices, scroll down. Everything you need to know is below . . .
Continue Reading