The Bullish And Bearish Abandoned Baby Candlestick Pattern
The Bullish Abandoned Baby candlestick pattern is a reversal pattern. The pattern has three candles. It forms at the bottom of a trend. In this pattern, the first candle is any long and bearish candle.
The Marubozu candlestick pattern has a single candle. It forms anywhere in the trend. It can be a long and bearish candle. It can also be a long and bullish candle.
The Piercing candlestick pattern is a reversal pattern. The pattern has two candles. The first candle is bearish. The second candle is bullish.
The Bullish Engulfing candlestick pattern is a reversal pattern. The pattern has two candles. The first candle is small and bearish. The second candle is long and bullish.
The Three White Soldiers candlestick pattern is also a reversal pattern. It forms at the bottom of a downtrend. The pattern has three candles. All three of the candles are long and bullish.
The Evening Star candlestick pattern is also a reversal pattern. The pattern has three candles. It forms at the top of an uptrend. The first candle is any long and bullish candle.
A Shooting Star candlestick pattern has one candle. It looks like a shooting star. The open, close, and low are near the low of the candlestick.
The Hanging Man pattern is the same as the Hammer pattern. When a Hammer pattern forms in an uptrend, it’s the Hanging Man pattern. The pattern has one candle.
The Doji candlestick pattern has a single candle. In this pattern, the stock opening and closing prices are equal. The pattern forms due to indecision between the buyers and sellers in the stock market.
In technical analysis, candlestick patterns are a combination of one or more candlesticks. The patterns form over short time periods. The patterns form due to stock prices’ daily supply and demand forces.
In technical analysis, there’s a series of common terms. Understanding the glossary of technical analysis terms is helpful for investors. Technical analysis is used to predict stock prices. It uses price, time, and volume data.
Technical analysis is used to forecast stocks. All of the technical indicators give possible entry and exit points. The forecasting accuracy isn’t 100%. This is one of disadvantages of technical analysis.
Entry and exit strategy is recommended for short and long-term trading in technical analysis. Fundamental analysis is used for the long-term entry and exit point.
In the last part of this series, we provided an overview of the Elliott Wave Theory. In this part of the series, we’ll discuss the psychology behind the Elliott Wave Theory’s two phases.
The Elliott Wave Theory was developed by R.N. Elliott in the 1930s. The theory proposed that market trends moves in repeated cycles. The cycles are classified based on how long they last.
The Dow Theory assumes that when a stock market is entering an uptrend or downtrend, the financial markets should agree with each other.
The Dow Theory was developed by Charles Dow. It identifies and signals the change in the stock market trends. It’s useful for trading and investing. The Dow Theory has six components.
Bollinger Bands are combination of a stock’s moving averages. When a stock’s volatility increases, the moving average channel expands. When volatility decreases, the channel tightens.
The Moving Average Convergence Divergence (or MACD) was developed by Gerald Appel in the 1970s. The MACD is the difference between two moving averages. The MACD consists of two lines.
The stochastic indicator compares the stock’s closing price with the stock’s price over a certain time period. In an uptrend, the stock price tends to close near its high.