Learn Forex
Forex For Beginners

Candlesticks formation and bearish reversal patterns

In the previous discussion, we learned about Candlesticks charting and how can we interpret from the candlestick's bodies and shadows. How, we will discuss how can we trade with these candlesticks.

One of the most important goals of technical analysis is to identify changes in direction of price action. The most useful aspects of candlestick analysis is its ability to suggest changes in the sentiment of the market and reversals in trend. We called it candle formations Reversal Patterns.

Important to note that with candlesticks a reversal pattern does not necessarily suggest a complete reversal in price action, but merely a change or pause in direction. Candlesticks reversal required to study with prior candle and next candle to confirm. Experienced traders also study charts together with some technical indicators to confirm the trend.

Abandoned Baby		Dark Cloud Cover		Evening Doji Star
Three inside down		Three outside down		Evening Star

Downside Tasuki		Deliberation		Meeting lines
Breakaway		Engufing		Dragonfly Doji

Tri starts		Gravestone		Hanging man

Belt Hold		Shooting star		Harami Cross
Tweezers Top		harami

So much so for candlesticks bearish reversal pattern. Next, we will look at the bullish reversal pattern