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
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...
The solid part is the body of the candlestick. The lines at the top and bottom are the upper and lower wicks, also called tails or shadows. The very peak of a candle's wick is the highest price for that time period, while the bottom of the wick is the lowest price for that ...
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 ...
The 2nd candlestick must then open and snap back lower. In the above example, you can see “2 Bar Reversal Pattern” on chart. Trading the 2-bar reversal price action trade set up The 2 bar reversal price action set up is an uncommon trade set up mostly due to the fact that it is...
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...
the body of thecandlebar—and not the thin wicks above and below the candle body—often represents where the majority ofprice actionhas occurred and therefore may provide a more accurate point on which to draw the trendline, especially on intraday charts where "outliers" (data points...