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
Ladder Top
by PRASHANT SHAH -
Ladder Top Category: Reversal Type: Weak Latter Top is not very common but an interesting trend reversal formation. Imagine four consecutive bullish candles appearing in the uptrend. There is a series of higher low, higher high and higher closing prices. The trend and price action are very bullish. In the next session, price opens lower ... Read more
Three Inside Out Pattern – Bullish
by PRASHANT SHAH -
Three Inside Out Pattern – Bullish Category: Reversal Type: Strong Three Inside Out is a three-candle bullish trend reversal pattern. A bearish candlestick pattern is followed by a bullish candlestick pattern that opens above the closing price and closes below the opening price of its previous candlestick pattern. In other words, the body of the ... Read more
Three Inside Out Pattern – Bearish
by PRASHANT SHAH -
Three Inside Out Pattern – Bearish Category: Reversal Type: Strong Three Inside Out is a three-candle bearish trend reversal pattern. A bullish candlestick pattern is followed by a bearish candlestick pattern that opens below the closing price and closes above the opening price of its previous candlestick pattern. In other words, the body of the ... Read more
