Tag Archives for " Candlesticks "

Mastering Candlesticks: Marabozu

What is it?The Marabozu candlestick pattern is one of the most basic patterns to identify and learn on any chart, and it is one of the strongest candlesticks as well. It is a single long candlestick that will be either bullish or bearish in nature. If it is bullish, the candlestick will be white or […]

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Mastering Candlesticks: Bearish Counter Attack

What is it?The first candle in the Bearish Counter Attack candlestick pattern, has a long white candle. The second day, the stock gaps up and then trades bearish. Then the second day closes out with a black candle which trades down to the same price or very close to as the previous day’s close. On […]

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Foundations: The Story Behind the Pattern

In today’s blog which covers Foundations of Stocks and Options Level 2 Class 6, we are going to discuss what information candlestick patterns can offer. If you remember from last Thursday’s blog, The Story Behind a Candlestick, we ​covered the idea that an individual candlestick tells a story. A story where every part of a […]

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Foundations: The Story Behind a Candlestick

We introduced you to the topic of candlesticks in a previous Stock Market Made Simple blog called Anatomy of a Candle, which you can review here if you wish. The SMMS ​blog presented the various parts of a candlestick and what they represent. In today’s blog, we are going to look a little deeper at […]

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Foundations: The Anatomy of a Gap

The main focus for blogging our way through the entire Foundations of Stocks and Options course is to provide a look behind the curtain on what each class has to offer. I tend to write about the one part of the class which strikes home in an “I didn’t know that” or “that’s kind of […]

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Foundations: Introduction to Chart Patterns

We first looked at stock charts in our Foundations of Stocks and Options Level 1 class post here. Where we introduced you to the various chart types, such as the line chart, the bar chart, and the candlestick chart, which are available for you to use when tracking a company’s performance in the marketplace. Today, […]

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Mastering Candlesticks: Evening Star Reversal

What is it?The Evening Star Reversal candlestick pattern is a three-candlestick pattern. The first candle is a strong bullish white candle, which is followed by a second small spinning top candle of any color. Finally, the third candle of the pattern is a black candle.Where is it?The Evening Star Reversal will occur at a resistance […]

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Foundations: Anatomy of a Trend

We covered in last Thursday’s blog that Technical Analysis focuses on the price action of a stock and how the current and historical price points can anticipate future price direction and activity. Thus, by studying the candlestick chart of a particular company, we can, in essence, make an educated guess on the stock’s future behavior. […]

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Mastering Candlesticks: Dark Cloud Cover

What is it?The Dark Cloud Cover pattern has a very descriptive name as it sounds like the clouds are building, and a rainstorm is coming which is exactly the way the Japanese interpreted this pattern. Japanese traders believed when you see a dark cloud cover formation; you should get ready because the rains are about […]

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Mastering Candlesticks: Bearish Harami

What is it?“Harami” means “pregnant” in Japanese, and as you can see in the following image it is an appropriate name for this candle. The candlestick pattern is characterized by a large, better than average size white candle. While the second candle is a smaller black candle, usually a spinning top, which occurs completely inside […]

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