Posts Tagged ‘pattern’

In this video, you will learn about candlestick reversal patterns, and how to use them in your forex trading. You can look at some important patterns. Candlestick patterns are made up of one or more candlesticks. A candlestick pattern tells you about the picture of what is happening in the market or the interaction between the buyers and sellers. Look at this chart. As you can see, this is a shooting star candle occurring […]

In this video, you will learn how to identify and trade the three inside up and three inside down candlestick patterns. You locate the three inside up pattern at the end of a downtrend. This is a bullish reversal pattern. It consists of three candlesticks. The first candlestick is a bearish candlestick. The second candlestick is bullish with a small body. The third candlestick is bullish and closes above the open of the first. As you can […]

In this video, you will learn how to identify and trade the three soldiers and the three crows pattern. You will locate the three soldiers pattern after a downtrend. It consists of three bullish candlesticks. The size of the second and third candlesticks should be nearly same. You can enter a long position here with a stop-loss. However, if the third candlestick appears with a slightly smaller body, it also indicates buyers […]

In this video, you will learn the bullish engulfing pattern. Candlesticks tell us about the supply and demand in the market. They provide great information for reversals in the market. This is a 2- candlestick pattern. The first candlestick is a red candlestick. The second one is a large green candlestick. This pattern occurs at the end of a downtrend, indicating that the control of the sellers is over. The low prices cause the demand to increase. Then buyers […]

In this video, you will learn about the doji candlestick and its variations. The doji candlestick indicates that neither the bulls nor the bears are winning. So, the market closes at the price where it opened. The doji candlestick is similar to a spinning top, but it has no real body and long wicks above and below. What is the psychology behind this candlestick? Initially, it can be either the bulls […]

In this video, you will learn about the basics of candlesticks and how they compare with a bar chart. When you trade using candlesticks, there are candlestick and the candlestick patterns. The patterns normally consist of 2 or 3 candlesticks observed as a group to observe the sentiment of the market. On the left, you have the white candlestick. The open price is lower than the close price. Normally it is indicated in green color. It is […]

The hammer and the hanging man candlesticks look similar but they have different interpretations. Firstly, the hammer is a bullish reversal candlestick, which means you can spot this candlestick at the end of the downtrend. The color of the body does not matter much. But the wick should be two times the size of the actual body. The idea behind this pattern is that the bears initially manage to hold control of the market and then push […]

In this video, you will learn about when you should use the candlestick pattern in your forex trading. Candlestick charts are the most preferred by the traders because they represent trends more clearly and express market sentiment in a clear manner. Candlestick reversal patterns such bearish and bullish engulfing are extremely popular among forex traders. However, it is wrong to base your trading decisions using the candlesticks […]

This pattern is comprised of a single candlestick. It can be found at both the top of an uptrend and the bottom of a downtrend. It represents indecision in the market, neither the bulls nor the bears are in control. This can be both bullish and bearish reversal pattern. With this pattern, the market closes exactly at where it opened. As you can see from this pattern, initially the market opens, and either the bulls or the bears take […]

In this video, you will learn about the bearish engulfing pattern. This is a bearish reversal pattern, observed at the top of an existing uptrend. This pattern becomes highly probable when played with confluence like overbought conditions and key resistance level. The first candlestick in this pattern is a green or a bullish candlestick. The next candlestick opens higher and turns downwards due to selling pressure and closes completely engulfing the body of the previous […]