Candlestick Patterns

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Bearish Reversal Candlestick Patterns Bearish Reversal Patterns Strong Bearish Reversal Patterns Moderate Bearish Reversal Patterns Weak Bearish Reversal Patterns One of the most significant goals of technical analysis is to identify changes in direction of price action. Because candlesticks give visual insight into what the market is market psychology, one of the most useful aspects of candlestick analysis is its ability to suggest changes in the sentiment of the market, and reversals in trend. We call these candle formations Reversal Patterns. Important to note is that with candlesticks a reversal pattern does not necessarily suggest a complete reversal in trend, but merely a change or pause in direction. That could mean anything from a slowdown in trend, sideways trading after an established trend, or a full turnaround following a reversal candle pattern. Highly Reliable Bearish Reversal Patterns Abandoned Baby Dark Cloud Cover Evening Doji Star Evening Star

Transcript of Candlestick Patterns

Page 1: Candlestick Patterns

Bearish Reversal Candlestick PatternsBearish Reversal Patterns

Strong Bearish Reversal Patterns

Moderate Bearish Reversal Patterns

Weak Bearish Reversal Patterns

One of the most significant goals of technical analysis is to identify changes in direction of price

action. Because candlesticks give visual insight into what the market is market psychology, one of

the most useful aspects of candlestick analysis is its ability to suggest changes in the sentiment of

the market, and reversals in trend. We call these candle formations Reversal Patterns.

Important to note is that with candlesticks a reversal pattern does not necessarily suggest a

complete reversal in trend, but merely a change or pause in direction. That could mean anything

from a slowdown in trend, sideways trading after an established trend, or a full turnaround following

a reversal candle pattern.

Highly Reliable Bearish Reversal PatternsAbandoned Baby Dark Cloud Cover Evening Doji Star Evening Star

Three Inside Down Three Outside Down

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Continuation Candlestick PatternsContinuation Patterns

Bearish Continuation Patterns

Bullish Continuation Patterns

Continuation patterns suggest the market will maintain an established trend. Often the direction of

the candlesticks themselves are in the opposite direction of trend in continuance. Continuation

patterns help traders differentiate between a price action that is in full reversal and those merely

taking a pause. Most traders will tell you there is a time to trade and a time to rest. The formation of

continuation candlestick patterns imply consolidation, a time to rest and watch.

Bearish Continuation PatternsFalling Three Methods Downside Tasuki Three Line Strike Side By Side White

Lines

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Strong Bullish Reversal Patterns

Moderate Bullish Reversal Patterns

Weak Bullish Reversal Patterns

One of the most significant goals of technical analysis is to identify changes in direction of price

action. Because candlesticks give visual insight into what the market is market psychology, one of

the most useful aspects of candlestick analysis is its ability to suggest changes in the sentiment of

the market, and reversals in trend. We call these candle formations Reversal Patterns.

Important to note is that with candlesticks a reversal pattern does not necessarily suggest a

complete reversal in trend, but merely a change or pause in direction. That could mean anything

from a slowdown in trend, sideways trading after an established trend, or a full turnaround following

a reversal candle pattern.

Highly Reliable Bullish Reversal PatternsAabandoned Baby Morning Doji Star Three Inside Up Three Outside Up

Three White Soldiers