There are three types of patterns:
- Continuation: The current trend continues.
- Reversal: The direction will reverse.
- Neutral: Nothing considerable happens.
All the patterns discussed in this part are reversal patterns.
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Bullish Engulfing
When a green candle comes after a red candle and engulfs its range.
Bearish Engulfing
The opposite of bullish engulfing happens.
Bullish and bearish engulfing are used alongside other factors when detecting reversal patterns. A reversal pattern indicates a possible change in the trend.
A bullish reversal pattern indicates the start of an upward trend. A bearish pattern indicates the start of a downward trend.
Bullish patterns indicate buyers are either in control or taking it.
Bearish patterns indicate sellers are either in control or taking it.
Bullish Harami
Harami in Japanese means pregnant. It is a bullish reversal pattern.
Bearish Harami
It is a bearish reversal pattern.
Bullish Harami Cross
It is a bullish reversal pattern. This pattern signals the start of an uptrend. The second candlestick in his pattern is a Doji Cross which itself alone is not considered bullish but also a bearish candlestick.
Bearish Harami Cross
The mirror image of the previous pattern. This signals the start of the downtrend.
Bullish Kicking
A red candlestick followed by a green one and there is a gap up.
Bearish kicking
A green candlestick followed by a red one and there is a gap up.
Bullish Two Soldiers
Two successive green candlesticks with a usually small body. It signals strongly the possible start of an uptrend.
Bearish Two Crows
Two successive red candlesticks with a usually small body. It signals strongly the possible start of a downtrend.
The rest of the patterns in this part consist of three candlesticks.
Morning Star
A Red candlestick followed by two green candlesticks like in the image. The third candle covers at least %50 of the first candle.
Evening Star
A Green candlestick followed by two red candlesticks like in the image. The third candle covers at least %50 of the first candle.
Morning Doji Star
Like morning star but the second candlestick is Doji. It is considered a weaker signal than a morning star pattern.
Evening Doji Star
Like evening star but the second candlestick is Doji. It is considered a weaker signal than an evening star pattern.
Three White Soldiers
It is a bullish reversal pattern. Three consecutive green candles. Each candle has usually a small body. usually, there is a big green candle after this pattern. Usually, this pattern happens when the price is going down but the reversal is starting.
Three Black Crows
It is a bearish reversal pattern. Three consecutive red candles. Each candle has usually a small body. Usually, there is a big red candle after this pattern. Usually, this pattern happens when the price is going up but the reversal is starting.
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