Candlestick patterns are used to gauge the market sentiment and decide who is in control of the price action. The candlestick pattern section covers articles discussing all candlestick patterns and trading techniques.
Practical Use of Candlesticks: Gold Short
The Morning Star and the Evening Star
So far, the reversal formations we saw - the Piercing Pattern, the Dark Cloud Cover, and the Engulfing patterns, were strong reversal signals, showing that the bulls or bears had the control. The Harami is usually a less powerful signal.
After our last articles on candlestick reversal patterns, test your kowledge.
Candlestick Reversal patterns: An Overview
In the previous article, We talked about candles with long and white bodies and discovered how such a candle could provide us with very useful information about the hidden properties of the market situation and the psychology of its participants.
There are two kinds of price movements in the markets: Impulsive movements and corrective movements. The ideal impulsive action is characterized by a continuous rise or decline from the opening level to the closing one, this being the highest or lowest point of the period. The ideal corrective movement is described by a lateral movement in a short-range and close opening and closing levels.
After our discussion about short-bodied candlestick in our article
This article is to be dedicated to single candlestick key figures. The majority of patterns are created by more than one candle, but some particular candlestick shapes are key figures to gauge the market sentiment and spot reversals.
The Financial markets are an exciting place for many people, attracted by dreams of infinite wealth. However, these markets are one of the most complicated environments on earth. The fact that millions of people exchange assets in financial markets makes them very difficult to predict, as each of the participants has its own vision, interests, and objectives.