Category: Candlesticks

Candlesticks archives contain all the Bullish Bears articles on the meaning of a candlestick as well as patterns.

Candlesticks are the name of the game and the first line of defense. By themselves they tell a story. When grouped together they form patterns.

Those patterns show continuations or reversals. They also provide support and resistance along with the real bodies and wicks of candles.

Moving averages and other indicators don’t mean anything without candles. As a result, they could be considered the most important part of trading.

Candles are used to gauge the emotions of other traders. They are bullish, bearish or indecisive.

As a result of candles being the foundation for trading, knowing what candlesticks mean help you chose when to trade and when to wait.

This section contains all the articles relating to the different types of candles as well as patterns and how to trade them successfully.

Evening Star Patterns

Evening star patterns are bearish reversal patterns. They are a 3 candlestick pattern that takes place near resistance levels. The first candle is a bullish candlestick. The second candle is a smaller doji or spinning top that closes above the first bullish candle. The third candlestick is a bearish candle that closes below the second….

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Morning Star Patterns

Morning star patterns are bullish reversal patterns. They are a 3 candlestick pattern that takes place near support levels. The first candle is a bearish candlestick. The second candle is a smaller doji or spinning top that closes below the first bearish candle. The third candlestick is a bullish candle that closes above the second….

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Three Line Strike Candlesticks Patterns

Three line strike patterns are bullish patterns. They are a four candlestick pattern that takes place near support levels. The first three candlesticks are bearish and are either red or black on stock charts. The fourth is a bullish candlestick that closes above the third. Look for possible continuation upwards if price rises above fourth…

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Bullish Homing Pigeon Patterns

Bullish homing pigeon patterns are a bullish pattern. They are a two candlestick reversal pattern that forms near support levels. They look like bullish harami’s but are a bit different. The first candle is a big bearish candle. The second smaller bearish candle fits inside the first bearish candle, thus looking like a bullish harami….

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Bearish Harami Patterns

Bearish harami patterns are two candlestick patterns that are found at the top of uptrends. The first candle is a larger bullish one followed by a smaller bearish candle that fits inside the bullish candle setting up a reversal to the downside. Look for price to fail the second candle and hold to confirm bearish…

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Bullish Harami Patterns

Bullish harami patterns are a two candlestick pattern. They typically take place at the bottom of downtrends and signal a reversal. The first candle is a bigger bearish candle followed by a second smaller bullish candle that’s contained within the bearish candle. The word harami means pregnant, so picture this visual when looking at the…

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Bearish Engulfing Patterns

Bearish engulfing patterns happen typically at the top of uptrends. They are a two candlestick pattern setup. The first candle is a small bullish candle followed by a second larger bearish candle that completely engulfs the first candle. Look for price to fail second candle and hold to confirm bearish continuation. Watch our video on…

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Bullish Engulfing Patterns

Bullish engulfing patterns are two candlestick patterns found on stock charts. The bullish engulfing pattern is considered to be a reversal pattern at the end of downtrends or near support levels. They consist of a big bullish candlestick that engulfs a smaller bearish one. Watch for price to break above bullish candlestick and hold to…

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Piercing Patterns

Piercing patterns are two candlestick patterns that are found at bottom of downtrends or near support areas. The second candle pierces halfway into the first bullish candle signaling a potential reversal to the upside. Look for price to break above the second bullish candle and hold to confirm reversal and possible new bullish trend. Watch…

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Dark Cloud Cover Patterns

Dark cloud cover patterns are two candlestick patterns found at the top of uptrends or near resistance levels and signal a reversal to the downside. The second bearish candle covers up to half of the first bullish candle. Look for price action to fall below the second candlestick and hold to confirm bearish continuation. Watch…

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