Candlesticks

The “rising three” is a chart pattern that many traders assume will lead to continuation of a bullish trend. It’s useful when trading on...

The “falling three” is a bearish chart pattern that often ends in a correction to the downside. It forms when the chart makes a short bullish move in a bearish trend.

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.

A gravestone doji can be a sign that an uptrend has moved too high, too quickly. This can mean some retracement is necessary before new highs can be made.

As a trading pattern, the preferred way to trade the evening star is when it appears in the bullish upward swings of a downward trending market.

A morning star strategy is used for trading on short swings in a downward trending market. The pattern usually shows up where the market has reached an oversold level.

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.

When trading an uptrend we always want to be alert to changes in bullish sentiment even on a small scale. The dark cloud is one such pattern that we can look for as an early sign of a bearish reversal.

A piercing line is a simple yet useful candlestick pattern to look for when trading short term up and down swings within a price channel.

Heikin Ashi is most useful for visually identifying places where the market is trending. This makes them suited to scalpers, swing traders, and day traders.