Chart Patterns Archives • Page 6 of 8 • TradeSmart University

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 […]

The 5 Worst Candlestick Patterns to Trade

Taking the time to learn candlestick patterns is one of the best first steps 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 them, understand some patterns that provide little useful information because the signals they indicate are […]

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 […]

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 […]

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 […]

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 […]

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. […]

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 […]

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 […]

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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