A morning star is a bullish three candle pattern. The first candle is a tall red real body, the second is small real body (red/green) that gaps below the first real body and the third is a tall green candle that closes at least 50% into the red body. However, if there is no gap because intraday forex candles dont gap often, still count it is as a morning star.
Evening Star Bearish Reversal sign
A three candle pattern in an upward price swing.The first candle is a tall green real body.The second is a small real body (red or green) that gaps above the previous real body, and the third is a tall red candle that closes at least 50% into the first candle's real body.
Hammer Bullish after a significant downturn
A reversal sign.Another name of PinBar, and one of my favorite. The long lower shadow must be at least twice the length of the real body.The real body can be any colour.The hammer needs a confirmation candle before we can act on it.We need to see a close above the close.But you can also act when the price break the hishest price of hammer candle.
Inverted hammer Bullish at bottom of trend
Wait for a bullish verification candle before acting.
Shooting star bearish at top of a trend
A shooting star can mark a top and is often retested. It is a reversal indicator after an up trend (long upper the shadow is bearish as higher prices are rejected).
Some times a pattern with four candlesticks occur. They consist of an extra candle such as doji or spinning top. When this occurs the pattern gers added strength and is more reliable.Also where hammer occuss in conjuction with spinning top or doji, the result is stronger and more reliable.
Bullish and Bearish Rejection Patterns
The bullish and Bearish Rejection patterns are reversal patterns anc occur in conjuction with support and resistance lines. When the currency pair attempts to breach the support or resistance line and fails it has been rejected at that level and reverses.
There are many combinations of candlestick patterns. We have only selected a few work well for us and limited the number to keep things simple.
For more information on candlestick topic, you can download from Free E-book Menu.
Evening Star Bearish Reversal sign
A three candle pattern in an upward price swing.The first candle is a tall green real body.The second is a small real body (red or green) that gaps above the previous real body, and the third is a tall red candle that closes at least 50% into the first candle's real body.
Hammer Bullish after a significant downturnA reversal sign.Another name of PinBar, and one of my favorite. The long lower shadow must be at least twice the length of the real body.The real body can be any colour.The hammer needs a confirmation candle before we can act on it.We need to see a close above the close.But you can also act when the price break the hishest price of hammer candle.
Inverted hammer Bullish at bottom of trend
Wait for a bullish verification candle before acting.
Shooting star bearish at top of a trend
A shooting star can mark a top and is often retested. It is a reversal indicator after an up trend (long upper the shadow is bearish as higher prices are rejected).
Some times a pattern with four candlesticks occur. They consist of an extra candle such as doji or spinning top. When this occurs the pattern gers added strength and is more reliable.Also where hammer occuss in conjuction with spinning top or doji, the result is stronger and more reliable.
Bullish and Bearish Rejection Patterns
The bullish and Bearish Rejection patterns are reversal patterns anc occur in conjuction with support and resistance lines. When the currency pair attempts to breach the support or resistance line and fails it has been rejected at that level and reverses.
There are many combinations of candlestick patterns. We have only selected a few work well for us and limited the number to keep things simple.
For more information on candlestick topic, you can download from Free E-book Menu.
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