What is a Bullish Engulfing Pattern and how does it work? The Bullish Engulfing Pattern is a bullish reversal candlestick that forms after a decline in price. Here’s how to recognize one: The first candle has a lower close The body of the 2nd candle “covers” the body of the first candle And here’s what […]
Three Black Crows: Why This Candlestick Pattern Has Fooled Many Traders
Three Black Crows Candlestick: What is it and how does it work? According to most trading books, the Three Black Crows is a bearish trend reversal Candlestick Pattern. However, that’s the wrong way to look at it (and I’ll explain why shortly). But first, here’s how to recognize the Three Black Crows pattern: 3 consecutive […]
Shooting Star Candlestick Trading Strategy Guide
What is a Shooting Star candlestick pattern and how does it work? A Shooting Star is a (1- candle) bearish reversal pattern that forms after advancement in price. Here’s how to recognize it: Little to no lower shadow The price closes at the bottom ¼ of the range The upper shadow is about 2 or […]
The Inside Bar Trading Strategy Guide
The Inside Bar is a simple but powerful candlestick pattern. It can help you better time your entries with low risk. The best part? You can use it to trade with the trend or, market reversals. Heck yeah! But first… What is an Inside Bar and how does it work? An Inside Bar is a […]
The Hammer Candlestick Trading Strategy Guide
According to most textbooks: Whenever you spot a Hammer candlestick pattern, you should go long because the market is about to reverse higher. And that’s what you do. But the next thing you know… The price immediately reverses and you get stopped out for a loss. And you wonder to yourself: “Wait a minute, isn’t […]
Bearish Engulfing Pattern Trading Strategy Guide
Do you know why most traders lose money when trading the Bearish Engulfing pattern? It’s because they treat them all the same! Here’s the thing: You can have two identical Bearish Engulfing patterns but, one is a high probability setup and the other is to be avoided (like how you run away from a stinky […]
The Complete Guide to Doji Candlestick Pattern
The Doji is one of the most misunderstood candlestick patterns. For example: 1. Do you know there are 4 types of Doji and each has a different meaning to it? (Most traders never figure this out) 2. The most textbook teaches you that a Doji represents indecision in the markets. But do you know it […]
The Monster Guide to Candlestick Patterns
Here’s the thing: There are many ways to read a chart. You can use Japanese Candlestick Patterns, Renko, Bar, Line, Heikin Ashi, Point & Figure, and etc. You’re probably wondering: “Which one should I use?” Well… If you ask me, the most popular approach is… Candlestick Patterns. Why? Because it’s easy to learn — and […]
Japanese Candlestick Chart Patterns for Beginners
Here’s the thing: You know Japanese candlestick chart patterns are powerful. It helps you time your entries & exits, anticipate trend reversals and gives you a sense of what the market is likely to do next. Now… You can go google information about Candlestick trading, but it’ll leave you overwhelmed (with 591,000 results). Or… You […]
The Pinbar Trading Strategy Guide
Forget what you’ve learned. The Pinbar trading strategy isn’t what you think. To tell you the truth: I once believed the Pinbar trading strategy was the “holy grail” of trading. All I needed to do was, spot this trading setup, enter the break of the Pinbar, set your stops, and make consistent profits every month. […]