Knowing the kinds of candle shapes and their meaning based on the combination of candles that appear can be used as a moment of opportunity to take open trading positions.
Level 4 candlestick reversal pattern
1.THREE BLACK CROWS
Note.
When the market is experiencing an uptrend and the price is able to make a higher high but finally closed down and the next two candles are a bearish candle indicating the seller has begun to dominate the market.
The price opened in the middle of the previous body candle shows the buyer trying to control again but failed.
• This pattern is usually followed by a constant volume increase
2.THREE IDENTICAL CROWS
Note:
When the market is experiencing an uptrend and the price is able to make a higher high but finally closes down and the next two candles are a bearish candle indicating the seller has
start to dominate the market.
The price opened the same as the previous close candle shows the strength of the seller.
3.THREE WHITE SOLDIERS
Note:
When the market is experiencing a downtrend and the price is able to make a lower low but finally closed up and the next two candles are a bullish candle indicating the buyer has begun to dominate the market.
The price opened in the middle of the previous body candle shows the seller is trying to regain control but failed.
• This pattern is usually followed by a constant volume increase.
4.CONCEALING BABY SWALLOW
Note:
When the market is experiencing a downtrend the appearance of an inverted hammer gives a sign of starting to lose momentum.
• Reversal that occurs is usually followed by an increase in volume.
• This pattern requires the next session confirmation that the price moves up and closes above the fourth session high.
5. LADDER BOTTOM
Note:
When the market is experiencing a downtrend the appearance of an inverted hammer gives a sign of starting to lose momentum.
• Reversal that occurs is usually followed by an increase in volume.
• This pattern requires the next session confirmation that the price moves up above the fourth session high.
6.STICK SANDWICH
Note:
This pattern shows that the price is facing a strong support level that cannot be broken, giving a possibility of a reversal.
• This pattern is usually followed by volume obliteration.
• This pattern requires the next session confirmation that the price moves up and closes above the third session high.
7.UNIQUE THREE RIVER BOTTOM
Note:
This pattern shows the price is facing a strong support level that cannot be penetrated. The hammer gives a signal that the downtrend will end.
• This pattern is usually followed by a decrease in volume.
• This pattern requires confirmation of the next session, that is the price moves up above the first candle.
• The longer the shadow on the hammer, the greater the potential for reversal to occur.
8.THREE STAR IN SOUTH
Note:
This pattern shows the price is facing a strong support level that cannot be penetrated. The third candle in the form of a candle with a short body shows that the market is losing momentum while there is a gap down.
• This pattern is usually followed by a decrease in volume.
• This pattern requires confirmation of the next session, ie the price moves up above the first high candle.
That is the level 4 price reversal candlestick pattern, hopefully it can help you to gain profit in trading.
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