These 4 Reversal Candlestick Patterns (Know Them)Please google, you tube or PDF all of these following FOUR candlestick reversal patterns, so you can win at trading Forex. (look at them on chart too)
1) Harami candlestick pattern- Bearish or a Bullish Harami, the pattern will contain two candles and the second will be smaller than the first. Harami actually means pregnant woman in Japanese, which makes sense when you consider this signal's shape: the second candle is enclosed within the body of the first. You can think of the second candle as the first candle's baby belly!
2) Pinbar candlestick pattern- A pin bar pattern consists of one price bar, typically a candlestick price bar, which represents a sharp reversal and rejection of price. The pin bar reversal as it is sometimes called, is defined by a long tail, the tail is also referred to as a “shadow” or “wick”. The area between open and close of the pin bar is called its “real body”, and pin bars generally have small real bodies in comparison to their long tails. The tail of the pin bar shows the area of price that was rejected, and the implication is that price will continue to move opposite to the direction the tail points. Thus, a bearish pin bar signal is one that has a long upper tail, showing rejection of higher prices with the implication that price will fall in the near-term. A bullish pin bar signal has a long lower tail, showing rejection of lower prices with the implication that price will rise in the near-term.
3) Engulfing candlestick pattern- The engulfing candlestick patterns, bullish or bearish are one of the easiest of candlestick reversal patterns to identify. Because these candlestick patterns are two-candlestick patterns, they are more valid and are often looked upon as reversal patterns. As with any candlestick pattern, the bullish or bearish engulfing pattern takes more priority depending on the time frame that they are formed on.
4) Doji candlestick pattern- A Doji is a candlestick pattern that looks like a cross as the opening price and the closing prices are equal or almost the same.
When looked at in isolation, a Doji indicates that neither the buyers nor sellers are gaining – it’s a sign of indecision. There are different types of Doji candlestick patterns, namely the Common Doji, Gravestone Doji, Dragonfly Doji, and Long-Legged Doji. Before acting on any signals, including the Doji candlestick chart pattern, one should always consider other patterns and indicators.
All of these can not be traded ALONE, but need other confirmation too trade. Like at supply and demand, in golden zone of fib (50%-62% area), etc...
