The Morning Star
by PRASHANT SHAH -
The Morning Star Category: Reversal Type: Strong The Morning star is a three-candle formation. It is an extension to the Bullish star pattern that we discussed earlier. A bearish candle in the downtrend followed by a small body candle that opens below the body of the previous candle is a bullish star pattern with a ... Read more
The Evening Star
by PRASHANT SHAH -
The Evening Star Category: Reversal Type: Strong The Evening star is a three-candle formation. It is an extension to the Bearish star pattern that we discussed earlier. A bullish candle in the uptrend followed by a small body candle that opens above the body of the previous candle is a bearish star pattern with a ... Read more
Abandoned Baby Bottom
by PRASHANT SHAH -
Category: Reversal, Type: Strong Abandoned baby bottom is a three-candle formation. It is similar to the three morning star pattern we discussed earlier. A bearish candle in the downtrend is followed by a small body candle that opens below the body of the previous candle with a body gap (gap between bodies). The second gapping ... Read more
Upward Gap Tasuki
by PRASHANT SHAH -
Upward Gap Tasuki Category: Pullback Type: Strong In the uptrend, price gaps higher and forms the bullish session. The low price of the candle is higher than the high price of the previous candle, hence there is a rising window in the uptrend. In the next candle, price gaps down and opens lower than the ... Read more
Downward Gap Tasuki
by PRASHANT SHAH -
Downward Gap Tasuki Category: Pullback Type: Strong In the downtrend, price opens lower and forms the bearish session. The high price of the candle is lower than the low price of the previous candle, hence there is a falling window in the downtrend. In the next candle, price gaps up and opens higher than the ... Read more
Ladder Bottom
by PRASHANT SHAH -
Ladder Bottom Category: Reversal Type: Weak Latter Bottom is not very common but an interesting trend reversal formation. Imagine four consecutive bearish candles appearing in the downtrend. There is a series of lower high, lower low and lower closing prices. The trend and price action are very bearish. In the next session, price opens higher ... Read more
