Candlesticks PatternsMost simply, candlestick charts are used by traders to represent the price evolution of an asset. While candlesticks may be harder to understand initially, they offer far more information than a simple line chart.
How to read a candle?
There are two colors: red and green. When a candle is red, its closing price was lower than the opening price: the price of the asset decreased during that trading period. When a candle turns green, the closing price was higher than the opening price as the asset's price increased.
Beyond color, let's break down the rest of the visual above:
Body: The body indicates the open-to-close range. In other words, it indicates the difference between the closing and the opening price.
Wicks: These are also called tails or shadows. They reveal the highest and lowest price of an asset within the candlestick period. If there is no wick, the opening and closing prices are the lowest/highest price.
Highest Price: The top of the upper wick indicates the highest price traded during the period.
Lowest Price: The lowest price traded during the period is indicated by the bottom of the lower wick.
Opening price: This is the price at which the first trade happened during the new candlestick time period. If the price goes up, the candle turns green and conversely turns red on a price decrease.
Closing price: The closing price is the last price traded during the period of the candle formation. If this price is above the opening price, the candle will be green, otherwise, it will be red.
Types of Candlestick Patterns:
The candlestick patterns can be divided into:
1.Continuation Patterns
2.Bullish Reversal Patterns
3.Bearish Reversal Patterns
We may further divide the above categories into further 35 sub-categories.
1. Hammer: Hammer is a single candlestick pattern that is formed at the end of a downtrend and signals bullish reversal. The psychology behind this candle formation is that the prices opened and sellers pushed down the prices.
2. Piercing Pattern: Piercing pattern is multiple candlestick chart pattern that is formed after a downtrend indicating a bullish reversal. It is formed by two candles, the first candle being a bearish candle which indicates the continuation of the downtrend.
3. Bullish Engulfing: It is formed by two candles, the second candlestick engulfing the first candlestick. The first candle is a bearish candle that indicates the continuation of the downtrend.
4. The Morning Star: It is made of 3 candlesticks, first being a bearish candle, second a Doji and the third being a bullish candle.
5. Three White Soldiers: These candlestick charts are made of three long bullish bodies which do not have long shadows and are open within the real body of the previous candle in the pattern.
6. White Marubozu: This candlestick has a long bullish body with no upper or lower shadows which shows that the bulls are exerting buying pressure and the markets may turn bullish. At the formation of this candle, the sellers should be caution and close their shorting position.
7. Three Inside Up: It consists of three candlesticks, the first being a long bearish candle, the second candlestick being a small bullish candle which should be in the range the first candlestick. The third candlestick should be a long bullish candlestick confirming the bullish reversal.
8. Bullish Harami: It consists of two candlestick charts, the first candlestick being a tall bearish candle and second being a small bullish candle which should be in the range of the first candlestick. The first bearish candle shows the continuation of the bearish trend and the second candle shows that the bulls are back in the market.
9. Tweezer Bottom: It consists of two candlesticks, the first one being bearish and the second one being bullish candlestick.
10. Inverted Hammer: In this candlestick, the real body is located at the end and there is a long upper shadow. It is the inverse of the Hammer Candlestick pattern.
11. Three Outside Up: It consists of three candlesticks, the first being a short bearish candle, the second candlestick being a large bullish candle which should cover the first candlestick.
12. On-Neck Pattern: The on neck pattern occurs after a downtrend when a long real bodied bearish candle is followed by a smaller real bodied bullish candle which gaps down on the open but then closes near the prior candle’s close.
13. Bullish Counterattack- This candlestick pattern is a two-bar pattern that appears during a downtrend in the market.
Bearish Candlestick Pattern:
14. Hanging man: The real body of this candle is small and is located at the top with a lower shadow which should be more than the twice of the real body. This candlestick pattern has no or little upper shadow. The psychology behind this candle formation is that the prices opened and seller pushed down the prices.
15. Dark cloud cover: It is formed by two candles, the first candle being a bullish candle which indicates the continuation of the uptrend. The second candle is a bearish candle which opens gap up but closes more than 50% of the real body of the previous candle which shows that the bears are back in the market and bearish reversal is going to take place.
16. Bearish Engulfing: It is formed by two candles, the second candlestick engulfing the first candlestick. The first candle being a bullish candle indicates the continuation of the uptrend. The second candlestick chart is a long bearish candle that completely engulfs the first candle and shows that the bears are back in the market.
17. The Evening Star: It is made of 3 candlesticks, first being a bullish candle, second a doji and third being a bearish candle.
18. Three Black Crows: These candlesticks are made of three long bearish bodies which do not have long shadows and open within the real body of the previous candle in the pattern.
19. Black Marubozu: This candlestick chart has a long bearish body with no upper or lower shadows which shows that the bears are exerting selling pressure and the markets may turn bearish. At the formation of this candle, the buyers should take caution and close their buying position.
20. Three Inside Down: It consists of three candlesticks, the first being a long bullish candle, the second candlestick being a small bearish which should be in the range the first candlestick. The third candlestick chart should be a long bearish candlestick confirming the bearish reversal. The relationship of the first and second candlestick should be of the bearish Harami candlestick pattern.
21. Bearish Harami: It consists of two candlesticks, the first candlestick being a tall bullish candle and second being a small bearish candle which should be in the range of the first candlestick chart.
22. Shooting Star: Shooting Star is formed at the end of the uptrend and gives bearish reversal signal. In this candlestick chart the real body is located at the end and there is long upper shadow. It is the inverse of the Hanging Man Candlestick pattern.
23. Tweezer Top: It consists of two candlesticks, the first one being bullish and the second one being bearish candlestick. Both the tweezer candlestick make almost or the same high. When the Tweezer Top candlestick pattern is formed the prior trend is an uptrend. A bullish candlestick is formed which looks like the continuation of the ongoing uptrend. On the next day, the high of the second day’s bearish candle’s high indicates a resistance level. Bulls seem to raise the price upward, but now they are not willing to buy at higher prices.
24. Three Outside Down: It consists of three candlesticks, the first being a short bullish candle, the second candlestick being a large bearish candle which should cover the first candlestick. The third candlestick should be a long bearish candlestick confirming the bearish reversal.
25. Bearish Counterattack– The bearish counterattack candlestick pattern is a bearish reversal pattern that appears during an uptrend in the market. It predicts that the current uptrend in the market will make and the new downtrend will take over the market.
Continuation Candlestick Patterns:
26. Doji: It is formed when both the bulls and bears are fighting to control prices but nobody succeeds in gaining full control of the prices.
27. Spinning Top: The only difference between spinning top and doji is in their formation, the real body of the spinning is larger as compared to Doji.
28. Falling Three Methods: The “falling three methods” is a bearish, five candle continuation pattern which signals an interruption, but not a reversal, of the ongoing downtrend.
29. Rising Three Methods: The “rising three methods” is a bullish, five candle continuation pattern which signals an interruption, but not a reversal, of the ongoing uptrend.
30. Upside Tasuki Gap: This candlestick pattern consists of three candles, the first candlestick is a long-bodied bullish candlestick, and the second candlestick is also a bullish candlestick chart formed after a gap up. The third candlestick is a bearish candle that closes in the gap formed between these first two bullish candles.
31. Downside Tasuki Gap: This candlestick pattern consists of three candles, the first candlestick is a long-bodied bearish candlestick, and the second candlestick is also a bearish candlestick formed after a gap down. The third candlestick is a bullish candle that closes in the gap formed between these first two bearish candles.
32. Mat-Hold-There can be either bearish or bullish mat hold patterns. A bullish pattern begins with a large bullish candle followed by a gap higher and three smaller candles which move lower.
33. Rising Window-The rising window is a candlestick pattern consisting of two bullish candlesticks with a gap between them. The gap is a space between the high and low of two candlesticks that occurs due to high trading volatility. It is a trend continuation candlestick pattern indicating strong strength of buyers in the market.
34. Falling Window-The falling window is a candlestick pattern that consists of two bearish candlesticks with a gap between them. The gap is a space between the high and low of two candlesticks. it occurs due to high trading volatility. It is a trend continuation candlestick pattern and it is an indication of the strong strength of sellers in the market.
35. High Wave-The high wave candlestick pattern is an indecision pattern that shows the market is neither bullish nor bearish. It mostly occurs at support and resistance levels.
Candlestick analysis
ETHUSDT Technical Analysis💎 ETHUSDT oh H4 after it got rejected from the major support zone, we see a Bullish setup has formed. S we can expect that the price makes HHs and HLs in the following days. The first target would be the first major Resistance zone
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☕️ TP1 3994.54
🍺 TP2 4294.84
🍻 TP3 4600.00
🍾 TP4
🍷 TP5
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🚫 SL 3608.44 - 3511.92
Good Luck 🎲
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Possibele Bullish Hammer Candle?After the hard Fall which just occurred for Bitcoin , it managed to rally up again, leaving us with a potential "Bullish Hammer Candle".
The Hammer Candle is not yet confirmed, so taking a Trade right now is not recommended. The Hammer Candle gets confirmed if the following Candle closes above the closing price of the Hammer Candle itself, ideally, with sings of strong buying.
Traders often enter a Long after the Confirmation, stop loss often placed slightly below the shadow of the Hammer Candle.
If you like my Content, hit the 👍 and/or comment and make sure to follow.
This Analysis is not intended to be investment advice. Always DYOR.
GOLD sell 1817-1819, SL:1822, TP1: 1812, TP2:1800 GOLD is moving in ascending channel (Rising wedge) also RSI is above 50. There is chance that it will retest its support level 1800 before moving more up.
XTZ Will FLY AGAIN!Hey guys, this is Julie 😉
Let's talk about XTZ today, because it is at a very important and decisive point:
As we see on the daily chart, XTZ is now above the 21 EMA, and this region coincides with a resistance level (green line). Additionally, we have the 61.8% Fibonacci Retracement very close to today's high.
So, as you can imagine, XTZ will need a lot of strength to go above this region.
Honestly, I think it will make it, because it is doing higher highs/lows for the first time since October, and to me, this indicates that the bears are actually getting weaker, and Tezos will finally reverse this downtrend.
So my thoughts on Tezos today are:
Once it closes above the green line resistance, it may find some resistance at the Fibonacci Retracement, if XTZ is able to close above it, I really believe it will fly again.
Let's see what happens next.
And that's it! Thanks for reading my analysis! Please, support me with your like and subscription! 😍
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NZD/CHF Price Action AnalysisDisclaimer:
Any of the content presented on my page showing my analysis of the market is just that, an analysis which means this is my personal opinion of where the price is going to go. Do not by any means take this simple analysis for a reason to enter a trade, I am not presenting these analyses as a form of signals, simply a way to get feedback and opinions from others on how my trades look. Take this trade at your own risk, but know forex is a risky market that you can make a lot of money but can lose that money or even more just as fast, enter these markets with your own risk and good luck with your trading :).
Weekly Analysis:
You can see in the previous few weeks price has tried to make a downtrend but really struggled on the way down, then price decided to make a jump upwards to the 0.66000 area before making another big move downwards. We saw price attempt to make a big move upwards and the bears really showed who was in control by making a big move downwards in the previous few weeks around November 1. We would want to see a break to the downside with a lot of momentum and even a pullback with rejection if possible. Waiting for a confirmation on lower time frames can be really useful here and will give us a better trade if we wait for a few confirmations.
Daily Analysis:
Price on the Daily still shows that there is a lot of bearish momentum but it does also show that there is a struggle breaking this lower zone and price has already bounced and went sideways in the past week. For us to take a trade, we would need candles to close below these lows with a lot of momentum before we take a low risk trade and try to capitalize on this continuation move. Confirmation on lower time frames will allow us to get a really good entry but might be a little more risky, if we wait for a close below these lows on the Daily timeframe we could get a less risky trade but lower Risk to Reward.
Hourly Analysis:
You can see marked by the green line, price has already started to try and form a downtrend by making lower highs and lower lows. Within this little move downwards you can even see that price had tried to make multiple pullbacks but continued downward multiple times as well. We are going to wait for a close below this bottom black zone and it would be nice to see a pullback to show weakness to the topside and a big move downwards before we get into this trade. A big move downwards will show that there is momentum in the bears and this could be something that we can take advantage of.
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AAPL - Sign and ConfirmationThe long upper wick of the candle is a sign of price rejection.
The first bearish pin bar on November 22, followed by another higher high long upper wick candle on December 1, is a sign that the trend is about to bend. Confirming the two sign is followed by another higher high with Bearish Engulfing Candle, this candle pattern could be the confirmation that the upward trend is done.
And also, if you draw a line, you can see that there is a Bearish Broadening Wedge forming.
Short Sell Opportunity in SBI CardIn the short term, the stock has resisted after a pullback..918 marks the strong support zone, below 918 one can go short with 1:2 risk: reward ratio.
Shall update levels once triggered.
MATIC: Now is the Time to BUY!Hey guys, this is Julie =D
Let's talk about MATIC today:
Have you seen this big divergence in the OBV? It is even higher when MATIC was at its highest price! To me, this is the best sign that MATIC IS GOING TO FLY!
We also have this amazing bullish candle today, closing above what seems to be a resistance level (orange line).
Now it has just reached another resistance, in the green line area.
It is not a surprise that MATIC goes up, as we can see, it is in a Bull Trend.
The price has been falling since December 9, but it was only a pullback to the 21 EMA to give us a good buying opportunity.
I see no reason not to buy MATIC today, I really believe it will go up, that's what the chart indicates.
And that's it for today. Thanks for reading my analysis! Please, support me with your like and subscription =D
Have a nice day!
GBPJPY - Bearish Shark PatternBearish Shark Pattern as a countertrend trade is something I would engage. The reason is Point D is at Point X of the Shark Pattern that acts as an Additional Resistance level for a counter-trend move.
SHORTING GBP/JPYGJ has just broken below previous support / demand zone from which we are currently watching a retest. If we get some nice selling pressure we are looking to place a sell on GBPJPY.
A word of warning, we can expect price to 'fake-out' above this zone all the way back up to our supply zone (yellow box) or even to the 61.8 Fib level before we see a continuation to out TP zone.
Entry: Wait for a bearish candle pattern formation or wick rejections at either resistance or 61.8 Fib level. We ideally want a doji / shooting star or a bearish engulfing for confirmation.
GBPUSD-Weekly Market Analysis-Dec21,Wk3Undeniable GBPUSD is on a Bearish run. However, there is a chance that the counter-trend traders may push, once the market break and close above the Buy Zone(blue) especially on the Daily Chart, the Blue wins.
For Harmonic Patterns traders or trend traders, there is an unbroken Bearish Gartley Pattern on the 1-hourly chart that is ready to be traded once the market open.
The only downside of the setup is that Point C touches Point A. We can argue that Point A has an ultra-long candlewick, but rules are rules
GBPJPY - Bearish GartleyA Bearish Gartley Pattern forms up as a trend trading setup within the sideways consolidation. It is a valid setup and a good consideration to short it once the market open. Between this and the GBPUSD which Gartley Pattern suits your trading profile better?
Comment down below.
NZDUSD - Bullish Deep Gartley @ XI know, I know... Lots of Harmonic Traders will not take this trade. But personally, I've tested this particular formation for more than 5years and it works perfectly for me so I'm going to take it.
Deep Gartley Pattern at X is my favourite setup as it gives 1 of the best reward:risk ratio which happens to be the top 3 filters in my list. Combo with long shadow candles and counter-trend level off the daily chart became the best setup I could find.
I've made my decision within seconds when I spotted this setup. Trading doesn't require you long hours starring at the screen and waiting for it to hit target or losses, you just let it run and set an alert at the right place.
These became easy when you have a good coach that teaches you how to and where to.
Check out my signature at the bottom
SHORTING GBP/JPYTechnicals:
As it currently stands, HJ is at a strong level of supply where we have started to see selling pressure come into play. We’ve seen a bearish engulfing, followed by a double top formation at supply. The double top was confirmed after a shooting star on the 30M timeframe. This is my confirmation to get into the trade, however, Monday usually contains manipulation, so I tend to not trade on Mondays, despite this, I like the look of this trade and the risk to reward ratio is there (4.4:1)
Fundamental summary:
The UK are looking to implement tighter Covid restrictions to reduce the spread of the new Covid variant ‘OMICRON’, this is likely to cause the pound to drop in value against the yen which is seen as a safe haven during times of uncertainty – known as risk off.
Please let me know your thoughts and trade with caution!
GBPAUD - Bearish Gartley PatternThe third is the charm? Well, all my Pound pairs have the Gartley Pattern, so which of these 3 Bearish Gartley would you prefer? Comment down below.
The Harmonic Patterns setup on the GBPAUD completes within the sell zone. However, it's also one of the patterns that is yet to complete.
EURUSD-Weekly Market Analysis-Dec21,Wk3EURUSD is on a Bearish run. During this season, I will take almost every Harmonic Patterns setup, that is only if you drew it correctly.
We have Bearish Bat on the Daily Chart, Bearish Butterfly and another Bat Pattern in the 4-hourly chart too.
But what matters for the coming week is the Bearish Shark Pattern that complete at 1.1344 on the 1-hourly chart this will most probably completed before Wednesday, and it can be as early as Monday.
USDJPY - Bearish GartleyIsn't it great to have the target hit, exited from the previous Bullish Bat and here we have a Bearish Gartley Pattern within the Sell Zone? And it is consider as a trend trading setup on the 1-hourly chart.
What to Expect? Could this be the bottom? Hey guys, this is Julie =D
In my first post here, I'm going to analyze ADA. I bought this pretty thing last month and it has been dropping ever since, so I have to talk about it.
Facts:
Ada has been in a clear bear trend since September, and has broken all support levels on its way.
The 21 Exponential Moving Average (EMA) is still above the price, which is not a good sign either.
Now It is in a supply zone (pink line), which seems to be holding Ada.
So what I do think about ADA -
I believe Ada could fall further, but I don't believe it would fall below the pink line. I don't think it would have the strength to break below that, because it is a strong resistance level.
And if it does fall, I think it would be a great time to buy.
I think ADA will finally go up when we see a reversal in the daily chart, a bullish pivot would be really great (I hope to see this)!
I like this crypto and believe in its potential, so I'm holding it.
Let's wait for a reversal and a good confirmation before buying.
And that's it! Thanks for reading my analysis.
I'm still learning Technical Analysis (and english), so be kind xD
Have a good day.
NZDJPY - Head and ShouldersDepends on how you read your Head and Shoulders. I'm waiting for the right shoulder to form at 76.26, which is near the zone of a Bullish Shark Pattern in the 1-hourly chart.
BTC/USDT Ghost Feed ScenarioThis is a ghost feed of what BTC daily candles could potentially look like as we are approaching more uncertainty of the direction in the crypto market. Please provide some thoughts on this.
LCID: Watch for a possible reversal pattern!Hello traders and investors! Let’s analyze LCID today! I’ve been analyzing during my videos on YouTube, but this is the first time I write about it here on TradingView. I hope you’ll find something useful.
First, in the 1h chart, LCID is clearly in a bear trend. We have a series of lower highs/lows, and the 21 ema is above the price, pointing down, potentially working as a resistance today, as it couldn’t break it during the first hour.
In order for LCID to reverse, we must see it breaking the 21 ema, and doing a bullish structure, preferably, a higher high from here, followed by a higher low.
What’s more, if LCID is about to reverse, now is a good time. We don’t see any confirmation yet, but we are just above a support level, which is better seen from the daily chart:
Yesterday, we had a very strong bullish candlestick, with decent volume, just above the $ 39.27, the previous support level. The only problem here is the 21 ema again, which is also working as a resistance. It is worth to notice that the 21 ema in the daily chart is almost at the same price seen in the 1h chart, something not that common to happen, making it a dual-resistance in different time-frames.
This candlestick pattern alone might be a buy sign for many, as the risk/reward ratio is making sense, in my view. I just prefer to see a better bullish structure in the 1h chart first.
Let’s see how it’ll play next. If you liked this analysis, remember to follow me to keep in touch with my daily updates on stocks and indices!
Have a good day.
NVDA LONG the price of NVDA still going up, it did not break the vwap indicator considered as support in this case, while the bears tried so hard to push the price to lower levels, the buyers resist which gave us the long lower candle's shadow on daily frame.
