Learn how to identify and trade bearish candlestick patterns effectively. Explore common types of bearish patterns, key factors to consider, and strategies for using them in your trading. Compare bearish vs bullish patterns and understand the pros and ch
Out of a universe of dozens of candlestick patterns, it has been found that a small group of them provide more trade opportunities than most traders will be able to utilize. In this section, 12 patterns are dissected and studied, with the intention to offer you enough insight into a fascina...
The thin lines (wicks) show the highest and lowest prices during that time. Did you know?Candlestick charts originated in Japan centuries ago. Rice traders used them to track price changes, and the patterns were named after everyday objects like “shooting stars” and “hammers.” What is fu...
Pin Bar, which is short for ‘Pinocchio Bar,’ is a single candlestick setup that clues price action traders into potential reversals in the market. A pin bar is an elongated wick that ‘sticks out’ from price action. Traders will usually look for one-sided wicks that are two times the...
The wicks (aka the shadows) of candlesticks show the highest and lowest prices reached by the financial asset in the given time period that the candlestick formed. The upper shadow, also known as the top wick is the highest price while the lower shadow, also known as the bottom wick is ...
How to trade the pin bars What is aPinBarpattern? A pin bar is an individual candlestick pattern and is identified by its long wick and small bodies. Typically, the wicks of the pinbar should be longer than the body. The chart below shows some different variations of the pin bar candlesti...
Each red candlestick consists of a rectangular body, called the real body, and two lines extending from the body, known as shadows or wicks. The top of the upper shadow represents the high price, while the bottom of the lower shadow represents the low price during the specified time period...
As you can probably notice, the candlestick chart displays additional price information that is not present in either line charts or bar charts. Each time interval in the candlestick chart resembles a candle, with its upper and lower “wicks.” These wicks represent the highest and lowest prices...
The morning star pattern comes in a minor variation. When the price action is essentially flat in the middle candlestick, it forms adoji. This is a small candlestick with no significant wicks—not unlike a + sign. The doji morning star shows the market indecision more clearly than a morning...
Trendlines will vary depending on what part of the price bar is used to "connect the dots." While there are different schools of thought regarding which part of the price bar should be used, the body of thecandlebar—and not the thin wicks above and below the candle body—often represents...