Double candle stick pattern
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| Double candlestick pattern |
1: Harami candlestick
Two type of Harami candlestick
- Bulish Harani
- Bearish Harami
What is Bullish harami ?
A candlestick pattern known as a bullish harami suggests that a downward trend may be about to reverse. It consists of two candlesticks: a smaller bullish candle after a longer bearish candle.
What is Bearish harami ?
A two-bar Japanese candlestick pattern known as a bearish harami indicates that prices may shortly turn lower. A tall white candle and a little black candle make up the motif. The first candle's body must contain both the second candle's opening and closing pricing. Before a bearish harami forms, there is an upsurge.
2: Engulfing candlestick
A chart pattern with two candlesticks in which the second candle entirely covers the first is known as an engulfing candlestick pattern. Technical analysis uses this Japanese candlestick pattern to spot possible trend reversals.
Types of Engulfing candlestick
- Bullish Engulfing
A possible bullish reversal is indicated when a bullish candle engulfs a negative candle.
- Bearish Engulfing
A possible bearish reversal is indicated when a bearish candle engulfs a bullish candle.
When to use engulfing candlestick patterns
Finding possible bullish or bearish trends and trading opportunities might be aided by engulfing candlestick patterns. But it's crucial to take other things into account and properly manage risk.
3: Dark cloud candlestick
A bearish reversal pattern that follows an upward trend is the Dark Cloud Cover candlestick pattern. A bearish candle that opens above the previous high but finishes below its midpoint, suggesting a possible downward reversal, follows a long bullish candle.
How is the Dark Cloud Cover candlestick pattern formed?
The 'gap up'—an rapid change in the stock price chart without any intervening trades—occurs when a bullish candle is followed the next day by a bearish candle, forming the dark cloud cover candlestick pattern.
The following standards are used by traders to evaluate the development of the dark cloud cover:
initial existence of an established upward trend. The length of the bullish candle should be substantial, suggesting the possible strength of the reversal. On the following day, the bearish candle showed a gap. The bearish candle's formation. The bearish candle closes below the previous bullish candle's midway.
Both candles should also have big bodies and little to no shadows. While small candles lessen the impact of the pattern, large candles indicate higher trader engagement. When the first bearish candle is followed by a third-day bearish candle, the pattern is confirmed. The pattern might not work if the price doesn't drop much more on the third day.
4: Rising sun candlestick
On candlestick charts, the rising sun candlestick pattern is a bullish reversal pattern. It is sometimes referred to as a bullish engulfing pattern and consists of two candles. When a small bearish candle is followed by a larger bullish candle that totally engulfs the previous candle's body, the rising sun pattern is created. The bullish candle should close close to its high and have a long actual body. The pattern is seen as an indication that the bulls are taking over the market and that the bears are losing ground.
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