Candlestick patterns
part 01
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BULLISH CANDLESTICK PATTERN
A hammer candlestick is a technical trading pattern that resembles a
“T” whereby the price trend of a security will fall below its opening
Hammer price, illustrating a long lower shadow, and then consequently reverse
and close near its opening. Hammer candlestick patterns occur after a
security has fallen in price, typically over three trading days. They are
often considered signals for a reversal pattern.
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The inverted hammer candlestick pattern indicates a bullish reversal or short-
term downtrend reversal. An inverted hammer occurs after a prolonged sell-off
when prices are near their lows for that period. It's easy to spot on a chart
because it resembles an upside-down, hanging shooting star candlestick
formation.
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A Dragonfly Doji is a type of candlestick pattern
that can signal a potential reversal in price to the
downside or upside, depending on past price
action. It's formed when the asset's high, open,
and close prices are the same.
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Key Takeaways. A bullish engulfing pattern is a
candlestick pattern that forms when a small
black candlestick is followed the next day by a
large white candlestick, the body of which
completely overlaps or engulfs the body of the
previous day's candlestick.
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A piercing pattern is a two-day, candlestick price
pattern that marks a potential short-term
reversal from a downward trend to an upward
trend. The pattern includes the first day opening
near the high and closing near the low with an
average or larger-sized trading range.
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What does morning star candle indicate?
Morning Star candlestick is a triple candlestick
pattern that indicated bullish reversal. It is
formed at the bottom of a downtrend and it
gives us a warning sign that the ongoing
downtrend is going to reverse
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A Morning Doji Star consists of a long bearish
candle, followed by a Doji that has gapped below
it, then a third bearish candle that closes well
within the body of the first candle and in doing
so confirming the reversal. It is considered a
strong bullish price reversal candlestick pattern.
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Three white soldiers is a bullish candlestick
pattern that is used to predict the reversal of the
current downtrend in a pricing chart. The
pattern consists of three consecutive long-
bodied candlesticks that open within the
previous candle's real body and a close that
exceeds the previous candle's high.
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