Posts

Showing posts from February, 2022

Bearish Counter-Attack Candlestick Pattern

Image
  Bearish Counter-Attack Candlestick Pattern The bearish counterattack candlestick pattern is a bearish reversal candlestick pattern. A bearish counterattack candlestick pattern can lead to a quick price reversal to the downside. An uptrend has been underway for some time, and bullish investors are comfortable with the momentum in the stock price. A bearish counterattack candlestick pattern starts with too much of the same, maybe even too much of an anniversary, as price opens with a gap from the close of the previous candlestick pattern. Bullish investors feel good about the gap this morning. But somewhere in the middle of the trading period, things change. Investors sell shares, and at the end of the trading period, the closing price of the candle is equal to or even slightly lower than the closing price of the previous candle. Hence the naming convention "counterattack".     How to Use the Counterattack Candlestick Pattern?   Recognizing the pattern is one thing. ...

The Neck Candlestick Pattern

Image
What is in The Neck Candlestick Pattern? The pattern at the neckline occurs when a long real-body bearish candle is followed by a smaller real-body rising candle that widens at the open but then closes near the close of the previous candle. The pattern is called a cleavage because the two closes are the same (or nearly the same) on both candles, forming a horizontal cleavage. In theory, the pattern is considered a continuation pattern, which indicates that the price will continue to fall following the pattern. In reality, this only happens half the time. As such, the pattern often suggests at least a short-term bullish reversal. What Does the Neckline Candlestick Pattern tell Traders? The candlestick pattern at the neckline informs traders of the possibility of the current trend in the market continuing. If the study is exhaustive, it also sheds light on the general behavior of the market in which it occurs. The appearance of the first bearish candle indicates the strength of the bears...

Tweezer Bottom and Top Candlestick Patterns

Image
How to Trade the Tweezer Bottom and Top Candlestick Patterns. The depth of the lower shadows of this signal indicates a support zone. The bears were unwilling to sell below that low price, so the bulls came back with great force, driving the price higher. The fact that two or more shadow candles have formed at the same level confirms the strength of the support and shows that the downtrend is likely to continue or turn into an uptrend.  Like the high tweezers, this signal is considered a short-term minor reversal pattern. To better understand its meaning, pay attention to these characteristics: 1When this model appears at the bottom of the market, it is more reliable. 2If the first candle has a high body and the second one has a short body, then the reversal will be more reliable. 3If the bottom of the tweezer is followed by another reversal pattern, such as B. an engulfing or bullish piercing pattern, with identical lows, this is even more reliable. The Tweezers Top and Tweezers B...

What is a Marubozu candlestick pattern?

Image
What is a Marubozu candlestick pattern? A Marubozu candlestick pattern is a stock chart pattern that can help investors gain insight into market sentiment at any time. Although Marubozu's model performs quite well when spotted, it remains relatively unpopular with investors. We take a look at the basics and key features of the model so you can start harnessing the power of this little-known stock market predictor. Marubozus are full-bodied bullish or bearish candlesticks with no upper wicks or lower shadows. Marubozus are usually green or white when they are bullish and red or black when they are bearish on stock charts. What are the pros and cons of using the Marubozu candlestick pattern? An important point to keep in mind when researching Marubozu candles is that while you should never trade in the same direction as the candles, you should definitely trade against them. Given the trading activity that is driving this pattern, if the market continues to move in this direction, you...

Three White Soldiers

Image
  Three White Soldiers Definition The Three White Soldiers candlestick pattern is unusual in that its meaning depends on its context. However, the pattern itself is easy to spot. This training is simply three days in a row with a white candle, each higher than the last. The apparition is of three white soldiers standing in a row, hence the name. The bullish significance of this formation is easy to guess. But how reliable is this indicator?   This indicator is quite strong and very reliable in most situations, indicating an accumulation of bullish strength. For example, when a market is flat or moving mostly sideways, the three white soldiers indicate that the bulls are gaining ground. When the market has entered a downtrend, this candlestick pattern indicates a reversal. However, when the market is constantly progressing, the three white soldiers are considered less important. That's because they fit the current blueprint and aren't even really considered a sequel.   How...