You are here: Home / Candlestick Trading

Forex Bearish Abandoned Baby Pattern

October 15, 2010 By Raj Leave a Comment

Abandoned Baby Pattern:

Bearish Abandoned Baby Pattern

Bearish Abandoned Baby Pattern

Type: Reversal
Direction: Bearish
Prior Trend: Bullish
Reliability: High

Forex Bearish Abandoned Baby Pattern is a very rare pattern. This pattern generally occurs after a significant uptrend. It is a three candlestick pattern consisting of a strong bullish candlestick and then a doji and then a strong bearish candlestick. But generally the doji forms well above the bullish candlestick. It looks similar to a bearish evening doji star pattern but in this pattern the doji occurs well above the bullish candlestick but in the evening doji star pattern the doji forms at the close of the bullish candlestick pattern.

How to recognize forex bearish abandoned baby pattern:

1) The price is in a significant uptrend.
2) A strong bullish candlestick forms with small tails compared to the body of the candlestick.
3) After the strong bullish candlestick a doji forms with open and close prices almost the same. The doji forms well above the bullish candlestick close price.
4) After the doji a strong bearish candlestick forms with small tails compared to the body of the candlestick.
5) The bearish candlestick penetrates well into the bullish candlestick.

The following are some of the real time examples of the bearish abandoned baby pattern.

AUDJPY Daily Chart:

The following is the daily chart for AUDJPY currency pair. You can see an abandoned baby formation in an uptrend and the price reversed.

AUDJPY Daily Chart Abandoned Baby In An Uptrend

AUDJPY Daily Chart Abandoned Baby In An Uptrend

USDCAD Daily Chart:

The following is the USDCAD daily chart. You can see an abandoned baby pattern in an uptrend and the price reversal.

USDCAD Daily Chart Bearish Abandoned Baby Pattern

USDCAD Daily Chart Bearish Abandoned Baby Pattern

VN:F [1.9.8_1114]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.8_1114]
Rating: 0 (from 0 votes)
Filed Under: Strong Bearish Reversal Patterns Tagged With: , , ,

Forex Tweezers Bottom Candlestick Pattern

October 15, 2010 By Raj Leave a Comment

Tweezers Bottom:

Tweezer Bottom Candlesticks

Tweezers Bottom Candlesticks

Tweezer Bottom Candlesticks

Tweezers Bottom Candlesticks

Type:  Reversal
Direction: Bullish
Prior Trend: Bearish
Reliability: Low

Tweezers Bottom consists of two or more candlesticks with the same lows. That means the lowest price of the candlesticks is same. This is a weak bullish reversal pattern.

How to identify Tweezers Bottom Pattern:

1)     The price is in a long down trend.

2)     In the down trend a bullish candlestick forms.

3)     The low of the bullish candlestick matches the low of the previous bearish candlestick.

This pattern creates support levels sharing the same low prices. Support levels are simply price ranges that the market has trouble to break. If the tweezers bottom appears at the extreme level of a market in a downtrend that could signal a price reversal.

Note: This is a weak pattern. Sometimes the tweezers bottom might result in a temporary price retracement. So always use some other indicators or chart formations to confirm the price reversal.

Examples:

EURCAD Four Hour Chart:

The following is the EURCAD four hour chart. If you observe the chart you can see that the trend was down and tweezers bottom was formed and the trend was reversed.

EURCAD Four Hour Chart Tweezer Bottom

EURCAD Four Hour Chart Tweezer Bottom

GBPUSD Four Hour Chart:

The following is the four hour chart of GBPUSD and you can see the tweezers bottom.

GBPUSD Four Hour Chart Tweezer Bottom

GBPUSD Four Hour Chart Tweezer Bottom

EURJPY Hour Chart:

The following is the picture of tweezers bottom formed in an hourly chart of EURJPY currency pair.

EURJPY Hourly Chart Tweezer Bottom

EURJPY Hourly Chart Tweezer Bottom

VN:F [1.9.8_1114]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.8_1114]
Rating: 0 (from 0 votes)
Filed Under: Weak Bullish Reversal Patterns Tagged With: , , , , ,

Forex Bearish Dark Clould Cover Candlestick Pattern

October 14, 2010 By Raj Leave a Comment

Bearish Dark Cloud Cover:

Dark Cloud Cover Candlestick Pattern

Dark Cloud Cover Candlestick Pattern

Type: Reversal
Direction: Bearish
Prior Trend: Bullish
Reliability: High

Bearish Dark Cloud Pattern is a two candlestick pattern. This is a strong bearish reversal pattern. This pattern consists of two candlesticks of which the first one is a strong bullish candlestick. The second candlestick opens above the previous candlestick but closes below the open thus forming a bearish candlestick. The candlestick close is below the middle point but above the open point of the first bullish candlestick.

How to recognize the Bearish Dark Cloud Cover Pattern:

1)      The trend will be in upward direction.

2)      A strong bullish candlestick forms.

3)      The next candlestick price opens above the previous bullish candlestick close.

4)      The candlestick close will be below the open point forming a bearish candlestick.

5)      The candlestick close will be below the middle point but above the close of the previous candlestick.

Note: For a strong signal the bearish candlestick should penetrate more than 50% of the bullish candlestick. If it is not more than 50% then the signal is not a strong one and it’s better to wait for another signal.

Check the following picture. It is a USDCHF daily chart. I have highlighted the dark cloud cover in the picture. The price was in an uptrend until the dark cloud cover pattern is formed and then the price reversed.

USDCHF Dark Cloud Cover Candlestick Pattern

USDCHF Dark Cloud Cover Candlestick Pattern

VN:F [1.9.8_1114]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.8_1114]
Rating: 0 (from 0 votes)
Filed Under: Strong Bearish Reversal Patterns Tagged With: , , , ,

Forex Inverted Hammer Candlestick Pattern

October 14, 2010 By Raj 4 Comments
Inverted Hammer:
Forex Inverted Hammer Candlestick Pattern

Forex Inverted Hammer Candlestick Pattern

Type: Reversal
Direction: Bullish
Prior Trend: Bearish
Reliability: Low

Inverted hammer is a weak bullish reversal pattern. It consists of a bullish or bearish candlestick with no or little lower shadow but with a long upper shadow. Generally the upper shadow should be at least twice the body of the candlestick.

How to recognize Inverted Hammer Candlestick pattern:

1) The market is in a downtrend.
2) A bearish candlestick forms with full body and no or little shadows.
3) After the bearish candlestick another candlestick forms with no or little lower shadow. The candlestick can be either bullish or bearish.
4) The upper shadow of the candlestick should be at least twice the body of the candlestick.

Note: When an inverted hammer forms in the downtrend, since it is a weak bullish pattern, better wait for the next candlestick for confirmation. If the next candlestick is a bullish candlestick then it’s good to enter long trading.

The following is the EURCAD daily chart. If you observe the chart on 11/4/2010 an inverted hammer was formed. After that there was a bullish candlestick formed and price reversed into uptrend. Check the following picture.

EURCAD Inverted Hammer

EURCAD Inverted Hammer

VN:F [1.9.8_1114]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.8_1114]
Rating: 0 (from 0 votes)
Filed Under: Weak Bullish Reversal Patterns Tagged With: , , , ,

Bullish Belt Hold Candlestick Pattern

October 12, 2010 By Raj 2 Comments

Belt Hold Pattern:

Belt Hold Candlestick Pattern

Belt Hold Candlestick Pattern

Type :  Reversal
Direction : Bullish
Prior Trend : Bearish
Reliability : Low

Bullish Belt Hold Candlestick pattern is a weak bullish reversal pattern. It is a single candle stick pattern.

How to recognize the Bullish Belt Hold Patterns:

1) The market is in downtrend

2) Then the market opens at its low and the price goes in the reverse direction of the trend.

3) A bullish candlestick forms with the price closing higher than the open not exactly at the high.

4) The bullish candlestick does not contain any lower shadow.

The following is the GBPJPY daily candlestick pattern. If you observe the graph you can see a downtrend and a Belt Hold candlestick has formed. The price opened below the close of the previous candlestick bar. The candlestick does not have any lower shadow also. The candlestick closed above the open. You can see the price reversal at this point.

GBPJPY Bullish Belt Hold Candlestick Pattern

GBPJPY Bullish Belt Hold Candlestick Pattern

VN:F [1.9.8_1114]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.8_1114]
Rating: 0 (from 0 votes)
Filed Under: Weak Bullish Reversal Patterns Tagged With: , , , ,

Gravestone Doji Candlestick Pattern

June 6, 2010 By Raj Leave a Comment

Gravestone Doji:

Gravestone Doji Candlestick Formation

Gravestone Doji Candlestick Formation

Type :  Reversal
Direction : Bullish
Prior Trend : Bearish
Reliability : Medium

Gravestone Doji is a reversal pattern that occurs in a downtrend. It consists of a single candlestick where the price opens at the bottom and closes at the same point with a long upper shadow. This pattern does not contain any lower shadow.

How to Recognize Gravestone Doji:

1) The market is characterized by a downtrend.
2) A doji forms in the downtrend with the open and close at the same point.
3) The doji will have a long upper shadow.
4) The doji does not have any lower shadow.

Important Factors:

This is a medium bullish candlestick pattern so always use some other indicators or confirmation before you enter the trade.

VN:F [1.9.8_1114]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.8_1114]
Rating: +1 (from 1 vote)
Filed Under: Medium Bullish Reversal Patterns Tagged With: , , , ,

Long Legged Doji Candlestick Pattern

June 6, 2010 By Raj Leave a Comment

Long Legged Doji:

Long Legged Doji

Long Legged Doji

Type :  Reversal
Direction : Bullish
Prior Trend : Bearish
Reliability : Medium

Long Legged Doji is a reversal pattern that occurs in a downtrend. It consists of a single candlestick where the price opens at the top and closes at the same point with a long upper shadow and a long lower shadow.

How to Recognize Long Legged Doji:

1) The market is charecterized by a downtrend.
2) A doji forms in the downtrend with the open and close at the same point.
3) The doji will have a long lower shadow.
4) The doji will have a long upper shadow.

Important Factors:

This is a medium bulliish candlestick pattern so always use some other indicators or confimation before you enter the trade.

VN:F [1.9.8_1114]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.8_1114]
Rating: 0 (from 0 votes)
Filed Under: Medium Bullish Reversal Patterns Tagged With: , , , , ,

Bullish Dragonfly Doji Candlestick Pattern

June 6, 2010 By Raj Leave a Comment

Bullish Dragonfly Doji:

Dragonfly Doji Candlestick Pattern

Dragonfly Doji Candlestick Pattern

Type :  Reversal
Direction : Bullish
Prior Trend : Bearish
Reliability : Medium

Bullish Dragonfly Doji is a reversal pattern that occurs in a downtrend. It consists of a single candlestick where the price opens at the top and closes at the same point with a long lower shadow. There won’t be any upper shadow.

How to Recognize Bullish Dragonfly Doji:

1) The market is charecterized by a downtrend.
2) A doji forms in the downtrend with the open and close at the same point.
3) The doji will have a long lower shadow.
4) The doji does not contain any upper shadow.

Important Factors:

This is a medium bulliish candlestick pattern so always use some other indicators or confimation before you enter the trade.

VN:F [1.9.8_1114]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.8_1114]
Rating: 0 (from 0 votes)
Filed Under: Medium Bullish Reversal Patterns Tagged With: , , , ,

Bullish Breakaway Candlestick Pattern

June 6, 2010 By Raj Leave a Comment

Bullish Breakaway Candlestick Pattern:

Bullish Breakaway Candlestcik Pattern

Bullish Breakaway Candlestcik Pattern

Type :  Reversal
Direction : Bullish
Prior Trend : Bearish
Reliability : Medium

Bullish Break Candlestick Pattern is a medium reliable reversal pattern. It consists of five candlestick body where the first one is strong bearish candlestick but the second, third and fourth are weak bearish candlesticks. The fifth candlestick is a strong bullish candlestick.

How to recognize bullish breakaway candlestick pattern:

1) This pattern consists of five candlseticks.
2) The first candlestick is a strong bearish candlestick.
3) Second, third and fourth candlesticks are also bearish candlesticks with lower closes but weaker than the first bearish candlestick.
4) Fifth candlestick is a strong bullish candlestick that closes into the body of the first or second bearish candlesticks.

Important Factors:

This is a medium bulliish candlestick pattern so always use some other indicators or confimation before you enter the trade.

VN:F [1.9.8_1114]
Rating: 3.0/10 (1 vote cast)
VN:F [1.9.8_1114]
Rating: +1 (from 1 vote)
Filed Under: Medium Bullish Reversal Patterns Tagged With: , , ,

Bullish Three Outside Up Candlestick Pattern

May 29, 2010 By Raj Leave a Comment

Bullish Three Outside Up Pattern:

Bullish Three Outside Up Candlestick Pattern

Bullish Three Outside Up Candlestick Pattern

Type :  Reversal
Direction : Bullish
Prior Trend : Bearish
Reliability : High

Bullish three outside up candlestick pattern is a bullish reverse pattern. It consists of a bullish engulfing candlestick pattern followed by another bullish candlestick.

How to recognize three outside up patterns:

1) The market is in a downtrend.
2) A bullish engulfing candlestick structure forms at the bottom of the trend.
3) After the bullish engulfing candlestick structure a bullish candlestick forms.

Importand Factors:
Use some other indicators to confirm the reversal.

Some examples of the three outside up candlestick reversal patterns:

The following are some of the real time examples of a three outside up candlestick pattern for different currency pairs

EURUSD Hourly Chart:

EURUSD Hourly Chart Three Outside Up Pattern

EURUSD Hourly Chart Three Outside Up Pattern

GBPCAD Hourly Chart:

GBPCAD Hourly Chart Three Outside Up Pattern

GBPCAD Hourly Chart Three Outside Up Pattern

USDCAD Hourly Chart:

USDCAD Hourly Chart Three Outside Up Pattern

USDCAD Hourly Chart Three Outside Up Pattern

AUDCAD Hourly Chart:

AUDCAD Hourly Chart Three Outside Up Pattern

AUDCAD Hourly Chart Three Outside Up Pattern

VN:F [1.9.8_1114]
Rating: 10.0/10 (1 vote cast)
VN:F [1.9.8_1114]
Rating: +1 (from 1 vote)
Filed Under: Strong Bullish Reversal Patterns Tagged With: , , , ,
« Older Posts
Newer Posts »