Patterns are – Harami, Star formations, Breakaways and Three white soldiers and Black Crowes
Harami Candlestick Patterns
Тhe Bullish Harami is a candlestick reversal pattern that has a small white bodied candle completely contained within the preveos black candle. This formation suggests that the downtrend is coming to an end and will reverse upwards. To confirm the reversal, is important the body of the candle, that is formed after the small, to pass the close of the black body. The smaller the second candlestick, the stronger the trend reversal signal.
The Bearish Harami is a candlestick reversal pattern that consists of a small black bodied candle completely contained within the preveous white candle. This formation suggests that the uptrend is coming to an end and will reverse downwards. To confirm the reversal, is important the body of the candle, that is formed after the small, to pass the close of the white body. The smaller the second candlestick, the stronger the trend reversal signal.
The Morning Star is a three candle bullish reversal pattern that occurs during a downtrend. The first candle of the Japanese Candlesticks pattern is part of the downtrend with a long black body. The following candle gaps lower and has a small white body. The last day is a white candlestick that closes above the midpoint of the first candle body (long black candle).
The Evening Star is a three candles bearish reversal pattern that happens during an uptrend. The first candle is long bodied and white. The following candle gaps higher and closes below it’s open. The last candle has a black real body and closes below the midpoint of the first candle in the series.
This candles stick pattern is often reversal, so to this pattern to be we need several candles to be in the same direction as the trend and emerge of a new candle that is engulfing the previous. It is consider for strong signal that price reaches a peak or low.
Three White Soldiers and Three Black Crowes
The Three White Soldiers pattern is formed of a series of three long bullish candles, they are considered as a continuous signal for uptrend or a reversal signal if they occurred after downtrend. Each candle has a higher close and each candle opens within the previous candle’s body.
The first of the three soldiers is called the reversal candle. It either ends the downtrend or implies that the period of consolidation that followed the downtrend is over.
The Three Black Crows pattern is a candle formation that does not happen very frequently so when it occurs traders should be stay on alert.
The three black crows candlestick pattern is just the opposite of the three white soldiers. It is formed when three bearish candles follow a strong uptrend, indicating that a reversal is in the works.
Each candle has a lower close and each candle opens within the previous candle’s body.