Category Archives for Mastering Candlesticks

Mastering Candlesticks: Falling Three

​What is it?It is somewhat ironic this pattern is a five-candle pattern, even though we call it a Falling Three, but once you understand the pattern, it makes perfect sense. The first day closes with a large black candle. It is followed by three smaller candles which do not trade above or below the first […]

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Mastering Candlesticks: Bearish Engulfing

What is it?Similar to the One Black Crow, the Bearish Engulfing pattern also closes below the preceding day’s opening candle reflecting the bears have taken back more territory than the bulls gained. However, the big difference between the two is the Bearish Engulfing pattern gaps up at the market open instead of gapping down like […]

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Mastering Candlesticks: One Black Crow

​What is it?The One Black Crow candlestick pattern is made up of two candlesticks and starts with a long bullish white candle. It is followed by a long black candle which opens and closes lower than the previous white candle’s open and close. Remember, both candles in this pattern should be long candlesticks.Where is it?The […]

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Mastering Candlesticks: Spinning Top

What is it?The Spinning Top candlestick is a clear sign of indecision in the marketplace. This is demonstrated by the candle’s small body which reflects the opening and the closing price of the stock were close in value. However, the short body of the candle gives way to long upper and lower wicks or shadows […]

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Mastering Candlesticks: Hammer Candle

What is it?The Hammer candlestick is a subset of the Spinning Top candlestick, which we covered here. A Hammer candlestick’s body can be either black (red) or white (green) in color and is usually small in stature. The small candlestick body signifies the stock’s opening price, and the closing price of the stock was close […]

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Mastering Candlesticks: Bullish Engulfing

What is it?The Bullish Engulfing candlestick pattern takes place over two time periods, and it must be located at the end of a downward trend. The first candlestick of the pattern must be black or red and followed by a second candlestick, white or green in color. The second candle will always gap down at […]

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Mastering Candlesticks: Bullish Piercing

​What is it?The Bullish Piercing candlestick pattern takes place over two time periods, and it must be located at the end of a downward trend. The first candlestick of the pattern must be black or red and followed by a second candlestick, white or green in color. The second candle will always gap down at […]

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Mastering Candlesticks: Tweezer Bottom

​What is it?The Tweezer Bottom candlestick pattern usually takes place over two time periods; however, it can be more than two. The main identify factor of this pattern is all the candles in the pattern have the same low price for the period. It can be either the opening price for the candle or the […]

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Mastering Candlesticks: Doji

​What is it?The Doji candlestick is recognized by the candle’s open and close prices, which are usually the same. This produces an easy to identify small to nonexistence candlestick body that resembles a cross or plus sign and can be either black (red) or white (green) in color. The absence of a candlestick body signifies […]

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Mastering Candlesticks: Inverted Hammer Candle

What is it?The Inverted Hammer candlestick is a subset of the spinning top candlestick pattern and looks exactly like the Shooting Star candlestick pattern which we reviewed last month.As with the Shooting Star, the Inverted Hammer has a very long upper wick or shadow, which is usually two to three times the size of the […]

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