REVERSAL BULLISH PATTERNS PART B

Technical analysis Forex Candlestick

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REVERSAL BULLISH PATTERNS PART 1

  • No. of bars: 3
  • Prior trend: Long
  • Structure: A long white day is followed by a small body that gaps in the direction of the trend. The third day is a black day that closes in the lower half of the first white candle.
  • Notes: The color of the star and the gaps are not important.

REVERSAL BULLISH PATTERNS PART 2

  • No. of bars: 2
  • Prior trend: Long
  • Structure: A long white day is followed by a black day which gaps above the high of the white candle and then closes below the midpoint of the first day’s body
  • Notes: If the black bar does not close below the halfway point of the white bar then the pattern reliability is lower.

REVERSAL BULLISH PATTERNS PART 3

  • No. of bars: 2
  • Prior trend: Long
  • Structure: A white day is then completely “engulfed” by a large black day which gaps above the white day’s high and closes below its low.
  • Notes: Engulfing patterns are often follow or complete doji, hammer or gravestone patterns and signal reversal in the short-term trend.

REVERSAL BULLISH PATTERNS PART 4

  • No. of bars: 2
  • Prior trend: Long
  • Structure: A small body forms at the lower end of the trading range. The upper shadow is usually long while the lower shadow is small or almost nonexistent.
  • Notes: The pattern requires confirmation from the next candlestick closing below half-way on the body of the first.

REVERSAL BULLISH PATTERNS PART 5

  • No. of bars: 1
  • Prior trend: Long
  • Structure: A small real body forms at the upper end of the trading range with a long lower shadow (the longer the more bearish) with no, or almost no upper shadow .
  • Notes: The pattern is a slightly more reliable if the real body is black and the lower shadow is two or three times longer than the height of the real body.

REVERSAL BULLISH PATTERNS PART B

  • No. of bars: 1
  • Prior trend: Long
  • Structure: A Doji forms at the lower end of the trading range. The upper shadow is usually long while the lower shadow is small or almost nonexistent.
  • Notes: The longer the upper shadow and the higher the price level, the more bearish the implications of the Bearish Gravestone Doji Pattern will be.

REVERSAL BULLISH PATTERNS PART 7

  • No. of bars: 1
  • Prior trend: Long 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.

REVERSAL BULLISH PATTERNS PART 8

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

REVERSAL BULLISH PATTERNS PART 9

  • No. of bars: 1
  • Prior trend: Long
  • 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

REVERSAL BULLISH PATTERNS PART 10

  • No. of bars: 2
  • Prior trend: Long
  • Structure: A long white day is followed by a black 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 a lower close on the following bar is crucial