Best Reversal Candlestick patterns in this Thread 🧵
It gives a signal that the short-term direction of the market, over the next several periods is changing
Simple but very Important for Trader.
Works in all time frame
Collabrated with @AnkurPatel59
It gives a signal that the short-term direction of the market, over the next several periods is changing
Simple but very Important for Trader.
Works in all time frame
Collabrated with @AnkurPatel59
1/ Morning Star
🔸The morning star pattern signals a reversal in the trend from bearish to bullish.
🔸Entry: Above the third candle
🔸Stoploss: Below the wick of the second candle
🔸The morning star pattern signals a reversal in the trend from bearish to bullish.
🔸Entry: Above the third candle
🔸Stoploss: Below the wick of the second candle
2/ Bullish Engulfing
🔸Appears at the bottom of a downtrend
🔸Entry: the high of the bullish candle
🔸Stop loss: A stop can be placed below the recent swing Low
🔸Appears at the bottom of a downtrend
🔸Entry: the high of the bullish candle
🔸Stop loss: A stop can be placed below the recent swing Low
3/ Hammer
🔸Formed in a downtrend it has a small upper body, and a long lower wick.
🔸Entry: the high of the bullish candle
🔸Stop loss: A stop can be placed below wick
🔸Formed in a downtrend it has a small upper body, and a long lower wick.
🔸Entry: the high of the bullish candle
🔸Stop loss: A stop can be placed below wick
4/ Hanging Man
🔸Forms at the end of an uptrend. Enter the trade once the market has moved past the low of the hanging man candle.
🔸Stoploss: Placed above the high of the hanging man candle.
🔸Target : Best to have at least a 1:2 Risk-to-Reward ratio
🔸Forms at the end of an uptrend. Enter the trade once the market has moved past the low of the hanging man candle.
🔸Stoploss: Placed above the high of the hanging man candle.
🔸Target : Best to have at least a 1:2 Risk-to-Reward ratio
5/ Innverse Hammer
🔸The Inverted Hammer is a signal of bullish reversal after a downtrend. Upper wick is long, while the lower wick is short.
🔸Entry : At the beginning of the trend
🔸Stoploss : Below the support line
🔸Target : Previous levels of resistance
🔸The Inverted Hammer is a signal of bullish reversal after a downtrend. Upper wick is long, while the lower wick is short.
🔸Entry : At the beginning of the trend
🔸Stoploss : Below the support line
🔸Target : Previous levels of resistance
6/ Evening Star
🔸The evening star pattern signals a reversal in the trend,from bullish to bearish.
🔸Entry: Below the third candle(Bearish candle)
🔸Stoploss: Below the wick of the second candle
🔸The evening star pattern signals a reversal in the trend,from bullish to bearish.
🔸Entry: Below the third candle(Bearish candle)
🔸Stoploss: Below the wick of the second candle
7/ Shooting Star
🔸Formed in an uptrend: it has a small lower body, and a long upper wick.
🔸Entry: the low of the bearish candle
🔸Stop loss: A stop can be placed above wick
🔸Formed in an uptrend: it has a small lower body, and a long upper wick.
🔸Entry: the low of the bearish candle
🔸Stop loss: A stop can be placed above wick
8/ Bearish Engulfing
🔸Strongest signal when it appears at the end of an uptrend. And follows downward price momentum.
🔸Entry: the low of the bearish candle
🔸Stop loss: A stop can be placed above the recent swing high
🔸Strongest signal when it appears at the end of an uptrend. And follows downward price momentum.
🔸Entry: the low of the bearish candle
🔸Stop loss: A stop can be placed above the recent swing high
If you think this was helpful:
1. Follow us
@TradeWithChart
&
@AnkurPatel59
For more threads on Trading Related Topics
2. RT the tweet below to share it with your audience.
3. Have a good Day.💙
1. Follow us
@TradeWithChart
&
@AnkurPatel59
For more threads on Trading Related Topics
2. RT the tweet below to share it with your audience.
3. Have a good Day.💙
Also Read this amazing Thread 🧵on Dow Theory
To Know the Market Cycle.
To Know the Market Cycle.
Loading suggestions...