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 & Piercing Pattern
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 green real body. The second day's price opens above the prior sessions high (that is above the top of the Read More..
The Harami Pattern
The combination of candle lines in the harami pattern, with its first tall real body followed by a small real body, is the reverse of the engulfing pattern. In the engulfing pattern, a lengthy real body engulfs the preceding small real body.
Another deference between the harami and engulfing pattern's is that for the two candles of the engulfing pattern, the color of the real bodies should be Read More..
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