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Morning Star

The morning star is a bullish reversal pattern, which consists of three candlesticks. You can locate this pattern at the end of a down leg in the market. The first candlestick is bearish. The second candlestick is a small candlestick, which can be either bearish or bullish, and gaps lower. If it is bullish, then the chances of reversal are more. It can also be a doji candlestick. It is followed by a bullish […]

Bullish Engulfing

The bullish engulfing is a bullish reversal pattern. This pattern consists of two candlesticks. This pattern occurs at the end of a downtrend. The first candlestick is bearish. The second candlestick is bullish, which completely engulfs the range of the first candlestick. You can enter a long position after the formation of this pattern with your stop-loss below the lows. Use technical indicators for additional confirmation. For example, look at this chart. You have […]

Piercing Line

The piercing line is a bullish reversal pattern. This is the opposite of the dark cloud cover pattern. You can spot this pattern at the end of a down leg in the matket. The first candlestick is a bearish candlestick. It is followed by a bullish candlestick opening below the close of the first one and closes above the midpoint of the first candlestick. You can enter a long position after the formation of this pattern with your stop-loss below […]

Bullish Harami

The bullish harami pattern consists of two candlesticks. This is a bullish reversal pattern. It occurs at the end of a down leg in the market. The first candlestick is bearish. It is followed by a smaller bullish candlestick contained within the trading range of the first candlestick. You can enter a long position after the formation of this pattern with your stop-loss below the lows. Use technical indicators for additional confirmation.

Bullish Doji Star

The bullish doji star is a three candlestick formation, which you can locate at the end of a down move in the market. The first candlestick is a long bearish candlestick. it is followed by a candlestick opening lower and closes as a doji candlestick. The doji candlestick represents indecision in the market. The third candlestick is a bullish candlestick and closes at the midpoint of the range of the first candlestick. For example, look at this chart. As you can see, the market is in a downtrend. […]

Dragon Fly Doji

For a dragonfly doji candlestick, the open, the high, and the close price are the same. It has a long lower wick. The lower wick indicates that the market has tested the low of the day to locate the where the demand is. For example, look at the chart. Initially, the bears were able to push the price downwards, and an area of support was found. Then the buyers were able to push the price upwards and the advance of the bears was rejected by the bulls. This is […]

Gravestone Doji

The gravestone doji is a bearish reversal pattern, which occurs at the top of an uptrend. It consists of a single candlestick with a long upper shadow and has the same open and close price. It is easier to spot. For example, look at this chart. At the end of the up move, you have this formation of gravestone doji candlestick. The long upper shadow is a sign of weakness and indicates that the bulls have lost strength and cannot push […]

Inverted Hammer — Reversal Pattern

The inverted hammer is a single candlestick pattern, which you can locate at the bottom of a downtrend. It is seen as a warning for a potential trend change. However, it should not be treated as a buy signal. You may technical indicators for additional confirmation. This pattern looks similar to a shooting star candlestick. This pattern is created when the open, close, and high price are roughly the same. For example, you have […]

Bull Flag Chart Pattern

The bull flag pattern is a short-term continuation pattern. You get this pattern when the market makes a brief pause in price action. This is seen as a reliable continuation pattern. You have the price making lower highs and lower lows within two trendlines. It is formed inside an uptrend. When the price makes a breakout, then look for the point of breakout as support. The height of the flag pole when placed at the point […]

Slippage, Requotes and Unfair Price Execution

When your forex broker delay your trade execution, these delays can work against you as you are not able to enter the market when you want. If you use a ECN broker, then your execution is instant. If you use a market maker broker, then there is going to be a delay of few seconds. At periods of high volatility, then this delay is going […]

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