Reversal Patterns
Bearish Crab, Bullish Crab – Trading Systems for Harmonic Patterns
Crab patterns often start to unfold when a market is making its highest high or lowest low in an established trend.
These harmonic structures can...
Basic Rules for Trading the Harmonic Butterfly
The butterfly is a harmonic chart pattern which you can use to trade possible trend reversals. Relatively new, it was first publicized in the...
The Bounce Trade: How to Profit from Price Bounces
Price bounces can be triggered by contact with any kind of support and resistance area. This can be a daily pivot line, a horizontal price support, a moving average line, or a Bollinger band line to name just a few.
Three-Inside Trend Reversals and How to Trade Them
The three-inside candlestick pattern is useful in predicting trend turning points and swings in currency pairs and other markets. It’s not a common pattern.
Harami Candlestick Patterns: Trading the “Inside Bar”
A harami pattern marks a sudden break in a trend where there’s indecision. At this point the buyers and sellers are closely matched leading the price to hover.
Is the Bullish Engulfing Candlestick a Reliable Pattern?
A bullish engulfing candlestick can be a useful buy signal. But in order to trade them we have to be able to recognize reliable patterns from the false ones.
Bearish Engulfing Candlestick: When is it a Strong Reversal Pattern?
If you’d blindly traded the bearish engulfing candle over the past decade, you’d probably have done slightly worse than if you’d traded on a coin flip.
Trend Reversals using Double Top/Bottom Chart Patterns
Trend reversals are often led by double top or double bottom chart patterns. If the reversal fails it can lead to a double top/bottom breakout.