What Are Harmonic Patterns & How To Trade With Them

Harmonic Patterns

The term “Harmonic” applies in many sectors like physics, music, acoustics, and power. In currency markets, the Harmonic Patterns describe that trends are harmonic in nature, meaning they can be divided into smaller or larger waves to predict the overall trend. What are the Harmonic Patterns? The basic idea of Harmonic trading is that patterns repeat themselves. It brings math into trading by relying on Fibonacci numbers. The Fibonacci is a sequence of numbers that starts with 0 and 1. Other numbers enlarge the sequence by adding the previous two numbers. Like 0 ,1, 1, 2, 3, 5, 8, 13, …READ MORE

What Is The Piercing Candlestick Pattern & How To Trade With It

Piercing Candlestick Pattern

The Piercing Candlestick Pattern consists of two candlesticks. It can indicate a potential reversal from the bearish to a bullish pattern in a downtrend and reversal from bullish to bearish in an uptrend. What is the Piercing Candlestick Pattern? The first candle of the Piercing Pattern is bearish, while the second is the bullish candle. The bearish candle opens high and closes near the low of the bullish candle. The bullish candle closes above the midway of the bearish candle. The Piercing Pattern suggests that the sellers were in control of the trend, but now the buyers have taken charge, …READ MORE

What Is The Double Bottom Candlestick Pattern & How To Trade With It

Double Bottom Candlestick Pattern

The Double Bottom is een as a possible bullish reversal pattern. The pattern appears in a downtrend and can signal the beginning of an uptrend. The Double Bottom looks like the letter W. What is the Double Bottom Candlestick Pattern? The Double Bottom signifies that the price falls to a bottom and rallies its way up before falling again. These two bottoms touch a support level and are similar in width and height. Traders look for the candle next to the Double Bottom to confirm a trend reversal. The pattern describes the battle between the bulls and the bears. At …READ MORE

What Is The Dark Cloud Cover Candlestick Pattern & How To Trade With It

Dark Cloud Cover Candlestick Pattern

The Dark Cloud Cover is a reversal trading pattern that can indicate a  possiblebearish trend. The pattern shows a change in momentum from upside to downside. What is the Dark Cloud Cover Candlestick Pattern? The formation of the Dark Cloud Cover takes place when a bearish candle follows a bullish candle. The bearish candle opens above the close of the bullish candle and closes below the middle of the bullish candle. The candle next to these two candles is a bearish candle, which confirms the pattern’s development. Here’s what the pattern looks like on the chart: The two candles have …READ MORE

What Is The Triangle Candlestick Pattern & How To Trade With It

Triangle Candlestick Pattern

The Triangle Candlestick is a continuation pattern. It forms when price moves into a tighter range depicting combat between the bulls and the bears. What is the Triangle Candlestick Pattern? The Triangle acts as a Horizontal Trading Pattern. It shows wide points at the initial stages, and as the price continues to move, the trading range becomes narrow, forming a triangle. There are three types of Triangle Pattern; ascending, descending, symmetrical. Ascending Triangle The Ascending Triangle is a breakout pattern that appears when the price surpasses the resistance level. The resistance level is a horizontal line, forming a slope of …READ MORE

What Is The Three White Soldiers Candlestick Pattern & How To Trade With It

Three White Soldiers Candlestick Pattern

The Three White Soldiers is a reversal pattern that indicates the possible ending of a current downtrend. It compromises of three long bullish candles. What is the Three White Candlestick Pattern? The pattern’s three candles don’t have a long wick and open within the previous candle’s real body. Also, it emerges in a downtrend. The first of these candles is called a reversal candle. It either suggests the ending of a downtrend or tells that the period of consolidation (an indecisive period which ends when the price moves above or below current prices) has come to an end. The second …READ MORE

What Is The Three Black Crows Candlestick Pattern & How To Trade With It

Three Black Crows Candlestick Pattern

The Three Crows is a bearish candlestick pattern that reveals the potential reversal of an uptrend. The pattern consists of three consecutive long-bodied candles. What is the Three Black Crows Candlestick Pattern? The Three Black Crows indicate that each candle closes lower than the preceding candle, describing that the bulls lose the combat, and the bears are now in charge. The first of the pattern’s three candles is a reversal candle, signaling the occurrence of a downtrend. The second candle is bigger than the first candle and closes near its low. The last candle is equal or bigger than the …READ MORE

What Is The Inside Bar Candlestick Pattern & How To Trade With It

Inside Bar Candlestick Pattern

The Inside Bar is a two candles pattern representing price continuation/reversal. Its formation takes place when the second candle is inside the preceding candle, hence the name inside bar. What is the Inside Bar Candlestick Pattern? In the Inside Bar Candlestick Pattern, the second candle is smaller than the previous candle. It describes that the high of the second candle is lower than the first, and the low of the latter is higher than the first candle. The first candle is also known as a mother bar, and the second is called the baby bar. The inside bar is usually …READ MORE

What Is The Head and Shoulders Candlestick Pattern & How To Trade With It

Head and Shoulders Candlestick Pattern

The Head and Shoulders Pattern is a trend reversal pattern consisting of three peaks. The two outside peaks are in the same height, while the middle one is the highest. The pattern identifies a bullish to a bearish trend reversal and emerges in an uptrend. What is the Head and Shoulders Candlestick Pattern? The formation of the pattern is based on a peak (shoulder), followed by a higher peak (head), and then another peak (shoulder). The two shoulders symbolize right and left shoulder. A neckline can be drawn by joining the lowest points of the two troughs (a stage which …READ MORE