Tag Archives for " Chart Patterns "

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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Top 5 Favorite Candlestick Patterns

Since the beginning of TradeSmart, students have often asked which candlestick patterns are the best? They may change the question around a little bit to which ones are the most reliable or consistent. Regardless of how the question is phrased, it always comes down to the base question, which is “What’s the best candlestick pattern?” Unfortunately, […]

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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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Interpreting Candlesticks

Candlesticks have risen in popularity and become an integral part of technical trading here in the west within the last fifteen years. The way you interpret candlesticks is one of the most important skills you can develop as a technical trader. In short, a candlestick is a graphical representation of a stock’s price action during […]

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Mastering Candlesticks: Shooting Star Candle

What is it?The Shooting Star candlestick is a particular type of spinning top candlestick pattern, and the physical attributes of this candlestick make it easy to spot in a candlestick chart.For starters, it has a very long upper wick or shadow, which is usually two to three times the size of the candlestick’s body formation. […]

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Mastering Candlesticks: High Wave Candle

What is it?The High Wave candlestick is a subcategory of the Spinning Top candlestick and just like the Spinning Top it is a clear sign of indecision in the marketplace. The body of a High Wave candle is can be either black (red) or white (green) in color and small in size. The small candle […]

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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: 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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