Trade Guru

Hammer & Hanging Man The Hammer & Hanging man Can be recognized by three criteria- The real body is at the upper end of the trading range. The color of the real body is not important. Hammer has a long lower shadow that should be at least twice the height of the  Read More... The Engulfing Pattern Bullish Engulfing Pattern There are 3 criteria for bullish engulfing pattern:- The market has to be in a clearly definable downtrend for a bullish engulfing pattern, even if the trend is short term. Two candles comprise the engulfing pattern. The second real body must engulf the prior real body (It need not engulf the shadow). The second real body of the engulfing pattern should be the  Read More.. Dark-Cloud Cover Our next reversal pattern is the dark cloud cover (See Image). It is a dual candle pattern that is a top reversal after and uptrend or, at time, at the top of a congestion band. The first day of this two candle pattern is a strong