Tag: Candlestick Patterns - Page 2

Candlestick Pattern Matching Lows

The candlestick pattern Matching Lows is a formation of two bearish candles presented in markets with a downward trend. It has a moderate reliability and indicates that the price is likely to change from bearish to bullish trend. This pattern can be identified as follows:

The current market trend is bearish.
During the first period a big black candle is formed.
In the second period there is a shorter black candle which has a close that is equal or almost equal to the close of the first candle.

Bearish Deliberation Candlestick Pattern

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The candlestick pattern Deliberation Bearish is a trend reversal formation of 3 candles which occurs in uptrends and indicates that there is a probability of a change to a bearish trend. This pattern has an average level of reliability and can be identified as follows:

This formation is presented in uptrends.
In the first two periods white candles are formed with long real bodies. In the second period, the closing price is higher than the closing price of the first period.
The opening of the third candle occurs near the end of the second candle.
In the third period we can see a candle with a small real body, usually a shooting star or a spinning top which opens with a gap on the previous candle.

Spinning Top Candlestick Pattern

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The Spinning Tops pattern is a formation of japanese candlesticks which indicates indecision in the market although it has a medium to low level of reliability. This pattern can be observed in both bull and bear markets and can be identified as follows:

A small black or white body with lines of short extension.

Candlestick Pattern Rising Window

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The Rising Window candlestick pattern is a highly reliable formation presented in uptrends which indicates that the current upward trend is likely to continue higher. This pattern can be identified as follows:

The previous trend should be upward.
There is a gap between the high of the first candle and low of the next candle.

Candlestick Pattern Abandoned Baby Bullish – Definition and Interpretation

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The candlestick pattern Abandoned Baby Bullish is a trend change formation of high reliability which is generated in bearish markets and indicates that there is a high probability that a change occurs from bearish to bullish trend. This formation can be identified as follows:

The current trend in the market should be bearish.
A large black candle which is followed by a Doji candle whose maximum occurs below the low of the previous black candle.
Between these candlesticks there is a gap whichs is known as “falling window”. During the next period a large white candle above the Doji is formed with an upward gap (rising window). This white candle penetrates deeply and closes within the larger black candlestick.

Doji Candlestick Pattern – Description and Identification

by rcanessa

The Doji is a candlestick pattern that can occur in both bullish and bearish trends and indicates indecision in the market. It has an average reliability and can be identified as follows:

The opening price and closing price are equal or nearly equal.
In a classic Doji the upper and lower tail are relatively short and equal or nearly equal.

The Candlestick Price Charts

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Candlestick Charts – Offering Best Information about Forex Trading!

All traders in all financial markets continuously seek for proper tools to analyze the behaviour of the price of the financial assets in order to determine its direction and the right moment to open a position. Well, there are numbers of solution available through which people can get the right option for their market trading. One of the best solutions is the candlestick chart which is a special type of bar-chart through which investors can get more information about the price behaviour of any financial instrument like stocks, currency pairs or derivative for example.

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