How does a candlestick chart work? Flashcards
What is a Bearish Engulfing Pattern
It consists of two candles: a smaller bullish candle followed by a larger bearish candle that engulfs the previous one. The pattern can be a warning sign that the bulls for this asset or market depicted are losing control and a bearish reversal is coming.
What is a Bullish Engulfing Pattern
The bullish engulfing pattern is a two-candle reversal pattern. The second candle completely ‘engulfs’ the real body of the first one, without regard to the length of the tail shadows. This pattern appears in a downtrend and is a combination of one dark candle followed by a larger hollow candle.
What is a Bearish Evening Star
An evening star is a stock price chart pattern that’s used by technical analysts to detect when a trend is about to reverse. It’s a bearish candlestick pattern that consists of three candles: a large white candlestick, a small-bodied candle, and a red candle.
What is aBearish Harami
A bearish harami is a two bar Japanese candlestick pattern that suggests prices may soon reverse to the downside. The pattern consists of a long white candle followed by a small black candle. The opening and closing prices of the second candle must be contained within the body of the first candle.
What is a Bullish Harami
A bullish harami is a candlestick chart indicator used for spotting reversals in a bear trend. It is generally indicated by a small increase in price (signified by a white candle) that can be contained within the given equity’s downward price movement (signified by black candles) from the past couple of days.
What is a Bullish Rising Three
What Is the Rising Three Methods Pattern? “Rising three methods” is a bullish continuation candlestick pattern that occurs in an uptrend and whose conclusion sees a resumption of that trend. This can be contrasted with a falling three method.
What is a Bearish Falling Three
Bearish Falling Three Methods reflects a short stop in the trend without showing a change in the price’s direction. There are three long black candles followed by three consecutive short candles. The signal is more reliable if the short candles are white, but the colour is not important.
What Is the 3 Candlestick Rule?
It consists of three successive candlesticks – the first is long and bearish and is followed by a smaller bullish bar that is completely engulfed by the first one. The third candle is bullish and closes above the second candle’s high, suggesting a potential shift from a downtrend to an uptrend
What is a Bearish Harami Cross
A bearish harami cross is a large up candle followed by a doji. It occurs during an uptrend. The bearish pattern is confirmed by a price move lower following the pattern.
What is a Bullish Harami Cross
A bullish harami cross is a large down candle followed by a doji. It occurs during a downtrend. The bullish harami cross is confirmed by a price move higher following the pattern. A bearish harami cross is a large up candle followed by a doji. It occurs during an uptrend.
