Three Outside Up / Down

Three Outside Up and Three Outside Down Sources: The Three Outside Up and Down are another set of trend-reversal patterns, consisting of three candlesticks, with the Up being the bullish and the Down the bearish one. The Three Outside Up pattern occurs at market bottoms. Its first candle is a bearish (matching the recent […]

Three Inside Up and Three Inside Down

Three Inside Up and Three Inside Down Sources:   These two opposite patterns are as well of reversal nature. The “Up” pattern is bullish and occurs at market bottoms, while the “down” pattern is bearish and forms at peaks. We will discuss the Up pattern and skip the Down because they are the same, […]

Three White Soldiers // Black Crows

Three White Soldiers and Three Black Crows Source: As you can guess from their names, these are two opposite patterns, each of which consists of three identically colored candles. They serve as reversal patterns, with the Three White Soldiers indicating a bullish reversal, while the Three Black Crows – a bearish. We will discuss […]

Morning/Evening Star

Trading the Bullish Morning Star Sources: DailyFX ; LearnToTradeToProfit ; TradingPedia ;   Evening Star and Morning Star Evening Star and Morning Star, as you can guess, are two opposite patterns, which attempt to foresee a trend reversal. We will describe all the peculiarities of the Evening Star pattern and leave the Morning star, because […]

Piercing Line/Dark Cloud

Videos [ here ] Piercing Pattern Source: Investopedia What is a Piercing Pattern A piercing pattern is a technical trading signal that is formed by a closing down day with a good-sized trading range, followed by a trading gap lower the following day with a white candlestick that covers at least half of the upward […]