More reversal patterns:
Dark Cloud Cover: This is a two-candle pattern showing reversal at the top of an uptrend. The first candle shows a bullish, fairly large real body. The second candle is bearish and opens above the previous candle's high, closing at least half way (50%) into the previous candle. This is a strong reversal signal, and is one of the major patterns in Japanese Candlesticks.
The reverse of the Dark Cloud Cover is called the Piercing Pattern. This is a two-candle pattern showing reversal at the bottom of a downtrend. The first candle shows a bearish, fairly large real body. The second candle is bullish and opens below the previous candle's low, closing at least half way (50%) into the previous candle. Again, this is a strong reversal signal.
Harami: The harami pattern is the reverse of the engulfing pattern. A long real body is followed by and engulfs a smaller real body. They do not necessarily have to be of different colours (bullish/bearish), but if they are, it adds weight to the possible reversal. This is a minor reversal signal and should be used with confirmation.
Examples to follow!
Keep on pippin'!!
D.
Dark Cloud Cover: This is a two-candle pattern showing reversal at the top of an uptrend. The first candle shows a bullish, fairly large real body. The second candle is bearish and opens above the previous candle's high, closing at least half way (50%) into the previous candle. This is a strong reversal signal, and is one of the major patterns in Japanese Candlesticks.
The reverse of the Dark Cloud Cover is called the Piercing Pattern. This is a two-candle pattern showing reversal at the bottom of a downtrend. The first candle shows a bearish, fairly large real body. The second candle is bullish and opens below the previous candle's low, closing at least half way (50%) into the previous candle. Again, this is a strong reversal signal.
Harami: The harami pattern is the reverse of the engulfing pattern. A long real body is followed by and engulfs a smaller real body. They do not necessarily have to be of different colours (bullish/bearish), but if they are, it adds weight to the possible reversal. This is a minor reversal signal and should be used with confirmation.
Examples to follow!
Keep on pippin'!!
D.
Attached Image