Candlestick Patterns page 3

Candlestick analysis in financial markets is an integral part of trading. Even if it is not used as the main method of predicting and finding entry points, it is very often used as an additional tool for the formation of signals. Let us consider one of the candlestick patterns called the Maribozu candle. What is it, what does it look like and what does its appearance on the chart tell us?

The group of candlestick patterns stands out such reversal patterns, which have only one candle in their structure. This trading technique was invented originally for the stock market, but soon it successfully proved itself in currency trading as well. 

As experienced traders know, not all candlestick patterns provide an entry point and indicate a market reversal. There are trend continuation patterns among them, they are used to assess the current market situation, and they do not give a signal to enter the market. The pattern of three white soldiers belongs to this category. It is suitable for both forex and the stock market, so be sure to include it in your arsenal.

In addition to the main patterns, which include pin bars and engulfing, there are some secondary patterns. They are somewhat less strong, but they can be found on the charts and if there are strengthening factors, such as support in the form of a level, they can be used as market entry signals. Today we will start with a pattern called Rails.

Technical analysis in trading is used to make forecasts of price movements and helps to determine the exact entry and exit trading points. There are many analytical methods used by traders, which are able to track the statistical direction and speed of value and quotes in the market. In this article, we will provide insight into the fundamental aspects of technical analysis every beginner should know.

Isn't it every trader's dream to catch the end of a trend and open a position at the very peak? Candlestick analysis provides such an opportunity. Candlestick analysis, despite its popularity, is not for everyone. To learn all the details and master all the facets of this science to perfection takes a fair amount of time. Even such seemingly simple figures as "Three white soldiers" or their antipode "Three black crows" in fact are full of secrets.

An inside bar can be part of an extremely effective price action strategy. However, the effectiveness of the inside bar is highly dependent on the market context. In other words, the inside bar by itself is not a working trading setup. We need to see additional factors that tell us that the potential profit is worth the corresponding risk. And that's not always easy, because you have to consider several components at once.

Among the patterns formed by Japanese candlesticks, there are both rare and frequently occurring ones. Among the latter, and frequently occurring patterns is a combination of two candles called "Outside bar". This pattern can also be found under the name Engulfing (more precisely, a bullish/bearish engulfing). This one is fairly simple, but gives most of the reliable signals, which are used by traders around the world. So, let's take a closer look at the Outside Bar pattern and the peculiarities of its formation and use.

The hammer candlestick pattern is frequently encountered in various markets and provides important information about a possible trend reversal. It is extremely important not only to identify it on the chart but also to use the information effectively. Let's consider in more detail this candlestick pattern, its types, and its features.  

Harami candlestick and/or Harami Cross is a strong candlestick pattern. Harami means "pregnant" in Japanese. And it is true, if you look at these two-candle formations, you can see that the first candle is much larger than the second, as if the mother is carrying a child. Some traders consider the Harami candlestick and Harami Cross a single candlestick pattern, while others subdivide it into two, or even three, different types.