Tag Archives for " Candlesticks "

Stock Market Made Simple: Support and Resistance

We have covered candles and candlestick charts in a couple of our earlier blogs. Now it is time to build on what we have learned and introduce the concept of support and resistance when analyzing a candlestick chart. And when I say analyzing, I really mean looking at a chart and trying to figure out […]

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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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Stock Market Made Simple: Anatomy of a Candle

In our fourth installment of our Stock Market Made Simple blog series, we are taking a closer look at the various aspects of an individual candle. Interesting enough, each candle’s body and wick length or lack of it, tells us a story. If we understand the story behind a candle’s ​assorted characteristics, then we can […]

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Stock Market Made Simple: What Is a Candlestick Chart?

Welcome to the third installment of our new introduction to trading blog series called Stock Market Made Simple. In last week’s post, which you can read here, we covered how a stock was traded in the marketplace. Today was are going to go a little deeper in our journey and cover candlestick charts.What Is a […]

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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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The 5 Worst Candlestick Patterns to Trade

Taking the time to learn candlestick patterns is one of the best uses of time for any trader. Once you learn the patterns, they will stay with you forever. However, before you go out and spend a lot of time memorizing patterns, understand there are some patterns which provide little useful information because the signals […]

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Top 5 Favorite Candlestick Patterns

Since the beginning of TradeSmart, we have often been asked by students which candlestick patterns are the best? They may change the question around a little bit to which ones are the most reliable or is such and such pattern better than this pattern. Regardless of how the question is phrased, it always comes down […]

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Top 4 Mistakes when Trading Chart Patterns #4

Chart patterns are one of the best tools technical traders have for anticipating market sentiment shifts. However, as great as they are, chart patterns are often misunderstood and misinterpreted. Over the past three weeks, we have been sharing the top four mistakes traders make with chart patterns, mistakes which often lead people to think they […]

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Top 4 Mistakes When Trading Chart Patterns #3

One of the big challenges when trading chart patterns is the tendency to have ambiguous rules for what qualifies as a pattern. It would be nice if we could sit here and tell you, “a double top pattern always takes four weeks to develop, it has a 3% retracement between point A and point B, […]

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