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Reversal Patterns Simplified
#Candlestick
There are two types of reversal patterns in candlestick
1.Bullish
2.Bearish
Bullish reversal pattern mostly occurs in downtrend or during intermediate corrections of uptrend,
Vice Versa for Bearish reversal pattern
1/n
#Candlestick
There are two types of reversal patterns in candlestick1.Bullish
2.Bearish
Bullish reversal pattern mostly occurs in downtrend or during intermediate corrections of uptrend,Vice Versa for Bearish reversal pattern
1/n
Reversal Patterns Simplified
Bullish
Some common bullish reversal patterns identifed by traders on charts are
1.Bullish Engulfing
2.Three White Soldiers
3.Morning Star
4.Piercing Line
5.Inverted Hammer
All patterns to be confirmed with price move & other indicators
2/n
Bullish
Some common bullish reversal patterns identifed by traders on charts are1.Bullish Engulfing
2.Three White Soldiers
3.Morning Star
4.Piercing Line
5.Inverted Hammer
All patterns to be confirmed with price move & other indicators2/n
Reversal Patterns Simplified
Bullish Engulfing
Its a reversal pattern in which second candle (Green) completely engulfs the real body of the first(Red) candle
On the second day price opens lower than the previous day low & close above previous day high
3/n
#Candlestick
Bullish Engulfing
Its a reversal pattern in which second candle (Green) completely engulfs the real body of the first(Red) candleOn the second day price opens lower than the previous day low & close above previous day high3/n
#Candlestick
Reversal Patterns Simplified
Three White Soldiers
It consists of 3 long green candles with consecutive closes above yesterday's low
Each candle opens higher than the previous open and closes near the high of the day
It appeares in downtrend or after consolidation
4/n
Three White Soldiers
It consists of 3 long green candles with consecutive closes above yesterday's low Each candle opens higher than the previous open and closes near the high of the dayIt appeares in downtrend or after consolidation 4/n
Reversal Patterns Simplified
Morning Star
It consists of 3 candles: one small candle (doji) between a preceding long red candle and a succeeding long green one.
This pattern comes with a bullish ray of hope in downtrend
Example - #Nifty made MS pattern near 7500
5/n
Morning Star
It consists of 3 candles: one small candle (doji) between a preceding long red candle and a succeeding long green one.This pattern comes with a bullish ray of hope in downtrendExample - #Nifty made MS pattern near 7500
5/n
Reversal Patterns Simplified
Piercing Line
Its a pattern in which first long red candle is followed by a green candle that opens lower than the previous close &
On the second day it closes above the halfway mark or more into the real body of previous day red candle
6/n
Piercing Line
Its a pattern in which first long red candle is followed by a green candle that opens lower than the previous close &On the second day it closes above the halfway mark or more into the real body of previous day red candle6/n
Reversal Patterns Simplified
Inverted Hammer
It a bullish reversal pattern occurs near a bottom of the downtrend
It consists of short candle with a longer lower shadow & small body
Next few days candles must be watched for better confirmation
End of Thread
Thanks
Inverted Hammer
It a bullish reversal pattern occurs near a bottom of the downtrendIt consists of short candle with a longer lower shadow & small bodyNext few days candles must be watched for better confirmationEnd of Thread
Thanks
