Patterns

Question 1

What are engulfing bars?

Answer 1

When one candle completely engulfs another candle
Bullish engulfing - Bullish bar engulfs bearish bar
Bearish engulfing - Bearish bar engulfs bullish bars

Question 2

What does bullish and bearish engulfing show about the market?

Answer 2

Bullish - buyers are in control
Bearish - sellers are in control

Question 3

What can be a sign of market reversal according to sticks?

Answer 3

Doji bar formations, shows that no one in the market is in control

Morning and evening bar trends

Question 4

Describe the morning bar trend

Answer 4

The first candle stick is bearish (sellers are still in control). The second is a bearish or bullish candle with a low volume (body) (indicating sellers have a weak interest in the market). The third candlestick is a bullish bar that closed above the midpoint of the first candle. This trend signifies bearish into bullish trend
- Overall morning bar trend shows how buyers took control of the market from the sellers.

Question 5

Describe the evening bar trend

Answer 5

The first candle stick is a bullish candle (buyers are still in control) The second candle stick is a small candle either bullish or bearish, can also be a doji star (buyers have weak interest in the market). The third bar is bearish which closes below the midpoint of the first candle stick of the pattern. This trend signifies bullish into bearish trend.