TRADING MANUAL - 3 Candlestick Patterns For Market Reversals - HowTo Trade and Something to Read

TRADING MANUAL - 3 Candlestick Patterns For Market Reversals - HowTo Trade and Something to Read

5 November 2014, 06:11
Sergey Golubev
1
1 086

Morning Doji Star, Evening Doji Star, Island Reversal Patterns.

Evening Star

The Evening Star Pattern is a bearish reversal pattern, usually occuring at the top of an uptrend. The pattern consists of three candlesticks:

  • Large Bullish Candle (Day 1)
  • Small Bullish or Bearish Candle (Day 2)
  • Large Bearish Candle (Day 3)

The Evening Star pattern is a very powerful three candlestick bearish reversal pattern. The bullish equivalent of the Evening Star is the Morning Star pattern.

Morning Star

The Morning Star Pattern is a bullish reversal pattern, usually occuring at the bottom of a downtrend. The pattern consists of three candlesticks:

  • Large Bearish Candle (Day 1)
  • Small Bullish or Bearish Candle (Day 2)
  • Large Bullish Candle (Day 3)

Something to read: High Profit Candlestick Patterns : Stephen Bigalow



High profit trading patterns
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Japanese candlestick signals provide an immense amount of information. They graphically depict what is occurring in investor sentiment. This alone provides a huge advantage for the investor. Having the ability to identify reversals in price trends, utilizing statistically proven and utilized signals, allows an investor to develop high profit trading strategies. The psychological elements not only reveal trend reversals, but they provide the insights for understanding why that reversal is occurring. This becomes a very powerful investment tool.

The graphic illustrations in this book are simple common sense revelations. Utilizing candlestick signals in conjunction with Western technical patterns produces two strong investment elements. First, it allows for the recognition of the optimal times for entering a trade. Second, the candlestick signals revealed immediately when the trend pattern is not performing correctly, allowing for quick exits.

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