REVERSAL BULLISH PATTERNS PART A

Technical analysis Forex Candlestick

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REVERSAL BULLISH PATTERNS

  • No. of bars: 3
  • Prior trend: Short
  • Structure: The Morning Star pattern signals a bullish reversal after a down-trend. The first candlestick has a long black body. The second candlestick gaps down from the first (the bodies display a gap, but the shadows may still overlap) and is more bullish if hollow. The next candlestick has a long white body which closes in the top half of the body of the first candlestick.
  • Notes: The color of the star and the gaps are not important.

REVERSAL BULLISH PATTERNS PART1

  • No. of bars: 2
  • Prior trend: Short
  • Structure: a long black day is followed by a white day that gaps below the black day’s low and closes within and above the midpoint of the black day’s body.
  • Notes: This can set up a powerful reversal.

REVERSAL BULLISH PATTERNS PART2

  • No. of bars: 2
  • Prior trend: Short
  • Structure: A black day is completely “engulfed” by a large white day that gaps below the black day’s low and rallies to close above its high.
  • Notes: The currency pair is being bought more aggressively.

REVERSAL BULLISH PATTERNS PART3

  • No. of bars: 2
  • Prior trend: Short
  • Structure: A long black day is followed by a white day which gaps opposite the trend and is completely engulfed by the real body of the first day.
  • Notes: A.k.a. “inside bar pattern” in price action terms, warns of reversal after a strong trend but confirmation as an higher close on the following bar is crucial .

REVERSAL BULLISH PATTERNS PART4

  • No. of bars: 1
  • Prior trend: Short
  • Structure: A small real body forms at the upper end of a trading range with a long lower shadow (the longer the more bullish) with no, or almost no upper shadow.
  • Notes: A.k.a. “Pinbar” in price action terms, warns of reversal after a strong trend but confirmation as an higher close on the following bar is crucial.

Forex candle

  • No. of bars: 1
  • Prior trend: Short
  • Structure: This particular pattern shows that the prices moved well above and below the opening level, however they finally closed virtually at the same level with the opening price. This is a doji characterized with very long shadows. It shows the indecision of the buyers and sellers.
  • Notes: Long-legged dojis, when they occur after small candlesticks, indicate a surge in volatility and warn of a potential trend change. It is one of the important reversal signals. But still, since its a one bar pattern, confirmation is essential.

candle

  • No. of bars: 1
  • Prior trend: Short
  • Structure: A single candlestick pattern that occurs at the bottom of a trend or during a downtrend.
  • Notes: The dragonfly occurs when the open and close are near the top of the candlestick and signals reversal after a down-trend. Control has shifted from sellers to buyers.

forex candle

  • No. of bars: 1
  • Prior trend: Short
  • Structure: This is probably the most popular candlestick pattern. The doji candlestick occurs when the open and closing price are equal. Quite simply, it represents indecision and causes traders to question the current trend
  • Notes: This can often trigger reversals in the opposite direction. confirmation is needed with a strong following bar.