What Are The Candlesticks Patterns Part I

[moonchild]

Candlesticks let us read meaning to the chart, they simplify how the market moves and also gives us an easy way to know what's going on and also make decision on the fly on whether we should enter a trade or we should hold on, In this short article I'll be touching on how you can recognize these patterns and to also take advantage of them.

Bullish Engulfing Candle: This type of pattern is the one where there is a small sized red candle, being slammed by a bigger and taller green candle, when this happens at support, it means trend is changing and you should hop in for a buy and if it happens when you're in a sell market, you should actually get out.

Ascending Triangle: This type of pattern happens when a trend is exhausted and is grouping to change dimension or direction, if it happens on an Uptrend, don't exit, but when it happens on a Downtrend is time to exit else, it will go back to your entry point and draw down will begin.

Maybe I'll make this into a series post because I can't cover the whole common Candlesticks patterns in just two hundred words.

So see you in part two.

 

[Jack Reacher]

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