The Upside Gap Two Crows
The Upside Gap Two Crows Pattern
The Upside Gap Two Crows pattern is a rare candlestick pattern that is similar to the evening star pattern and the engulfing pattern, but with a few significant differences. Like the Evening Star pattern, the Upside Gap Two Crows pattern is a bearish top reversal pattern that consists of three candlesticks. The first candlestick in the pattern must be a bullish candlestick with a large real body and must be light in color. This bullish candlestick is followed by two smaller bearish candlesticks that almost form an engulfing pattern, except that they are both bearish and hence dark in color. The first bearish candlestick that follows the bullish candlestick must have an upside gap between its real body and the real body of the bullish candlestick, as is the case with the evening star pattern. However, the last candlestick in the pattern must open above the real body of the middle candlestick and must close below it to completely engulf the real body of the second candlestick. Where the upside-gap two crows pattern differs from the evening star pattern is in the last candlestick, which need not penetrate and close well into the real body of the first candlestick.
As the upside-gap two crows pattern is a bearish trend reversal pattern, it is only valid if it appears in an uptrend. As with most trend reversal patterns, the upside-gap two crows pattern is more significant when it appears on or near a trend line or support and resistance line.
The Hanging Man and Hammer candlestick patterns are related trend reversal patterns that may appear at the end of an uptend or downtrend respectively. This is a single candlestick pattern that with a short real body, little or no upper shadow and a long lower shadow that must be at least twice as long as length of the real body. The color of the candle is not import, only its location in the current trend.
The Hammer pattern is called a takuri in Japanese, which means testing the water for its depth. This is the bullish version of the pattern. A bearish ...
The dark-cloud cover pattern is the opposite of the piercing pattern and appears at the end of an uptrend. It is a dual candlestick pattern with the first candlestick being light in color and having a large real body. The second candlestick must be dark in color, must open higher than the high of the first candlestick and must close down, well into the real body of the first candlestick. The deeper the second candlestick penetrates the first, the more reliable the pattern becomes.
The dark-cloud cover pattern is also more reliable when it appear at or near a resistance line ...
Three Black Crows
The Three Black Crows pattern is the bearish counterpart of the Three Advancing White Soldiers pattern. It is a reversal pattern that consists of three bearish candlesticks that should come into consideration when it appears within an established uptrend, where it indicates a weakness in the uptrend and, potentially, the beginning of a down trend.
Each of the three candlesticks in the Three Black Crows pattern should be relatively long bearish candlesticks with little or no lower shadows. Each of the candlesticks in this pattern should mark a steady decline in ...
The Engulfing pattern is a reversal candlestick pattern that can appear at the end of an uptrend or at the end of a downtrend. The first candlestick in this pattern is characterized by a small body and is followed by a larger candlestick whose body completely engulfs the previous candlestick's body.
The colors of the candlesticks that make up the engulfing pattern are important. When the engulfing pattern appears at the end an uptrend, it is a bearish reversal signal and indicates a weakness in the uptrend and ...
Continuation patterns indicate that there is a greater probability of the continuation of a trend than a trend reversal.. These patterns are generally formed when the price action enters a consolidation phase during a pre-existing trend. During the consolidation phase, the trend appears to change; however, the continuation of the preceding trend is more probable.
Some of the common continuation patterns include the cup and handle pattern, flags and pennants, symmetrical triangles, ascending triangle and desc...
Reversal patterns mark the turning point of an existing trend and are good indicators for taking profit or reversing your position. Generally, trend reversal patterns indicate that a support level in a downtrend or a resistance level in an uptrend will hold and that the pre-existing trend will start to reverse. These patterns allow you to enter early in the establishment of the new trend and are usually result in very profitable trades.
The common reversal patterns include the double tops and double bottoms, triple tops and triple bottoms, broadening tops and broadening bottoms, ...