0% found this document useful (1 vote)
254 views36 pages

Candlestick Patterns For Profit - JD Lasinger

Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (1 vote)
254 views36 pages

Candlestick Patterns For Profit - JD Lasinger

Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 36

About Trade Opus

Trade Opus is an objective review site for web based Binary


Option trading platforms. Primarily we will be performing an
in depth analysis of various Binary Option trading systems
that can be accessed on the internet.

Trade Opus also provides general information on trading as


well as feature articles or blog posts dealing with current
financial market trends or stories.

Copyright © 2013 Trade Opus.


All rights reserved worldwide.
For more downloads, videos, honest reviews and
information visit us online at:
www.TradeOpus.com
Candlestick Patterns

Content
Introduction to Candlestick Charting
The Hammer Bullish Reversal Candlestick Pattern
Bullish Engulfing Candlestick Reversal Pattern
Three White Soldiers Bullish Reversal Candlestick Pattern
Shooting Star Bearish Reversal Candlestick Pattern
Dark Cloud Cover Bearish Reversal Candlestick Pattern
Bearish Engulfing Reversal Candlestick Pattern
Rising Three Methods Bullish Continuation Candlestick Pattern
The Upside Three Gap Bullish Continuation Candlestick Pattern
Bullish Separating Lines Continuation Candlestick Pattern
Bearish on Neckline Continuation Candlestick Pattern
Downside Tasuki Gap Bearish Continuation Candlestick Pattern
Bearish Thrusting Continuation Candlestick Pattern
Best Brokers for Trading
Introduction to Candlestick Charting

Candlesticks were created by Sokyu Honma, a Japanese rice trader,


hundreds of years ago. Since then, they have acquired such an
impressive reputation as a powerful analytical tool; they are still
widely used by binary options traders today.
This is because many experienced investors currently deploy a
thorough grasp of candlestick concepts to boost their profits and
success. Candlesticks can generate important insights into prevailing
trading conditions because each one displays a unique interpretation
about how the price of an asset performed over a selected time
period.
Each candlestick is represented by 4 price points: closing, highest,
opening and lowest prices. The distance separating the closing and
opening values is defined as the ‘body’. When the closing value is
higher than the opening price, then the candlestick is bullish and its
body normally has a white color. Alternatively, a bearish candlestick
is formed whenever the opening price is above the closing value.
The distance separating the highest price and closing price of a
bullish candlestick is known as the ‘wick’. In addition, the distance
separating the lowest value and opening value is referred to as the
‘tail’.

Sample of Bearish and Bullish Candlesticks


Since the creation of candlesticks, investors have identified a library
of candlestick formations that can be easily used to detect important
price movements and structures. A number of famous patterns are
now presented.

I. Shaven Head – Small Body with no wick, but long tail. Indicates a
Bullish reversal.
II. Spinning Tops – Small bodies with small tails and wicks. Indicates
market indecision.
III. Doji – No body with just horizontal line. Indicates market
indecision.
IV. Marobozu – Long body with no wick or tail. White body is bullish
while black body is bearish.
Every candlestick denotes one time period of a chosen time-frame.
For example, if you select the daily time period, then each
candlestick will represent a one day period displaying how the price
of an asset traded throughout that time. This feature implies that a
trading chart, based on the hourly time-frame and displaying price
action over a number of days, will present a series of consecutive
hourly candlesticks, as displayed by the following diagram. In this
figure, bullish candlesticks are black while bearish candlesticks are
red.
The Hammer Bullish Reversal Candlestick
Pattern

This formation is a revered technical indicator that is normally


created towards the end of a sustained bearish downtrend. After
opening, the price plunges dramatically lower before rebounding
sharply to close well above the candlestick’s mid-point.
The ‘Hammer’ exhibits practically no wick (distance between the
opening and highest values) but, instead, possesses a tail (distance
between lowest and closing prices) which is double the size of its
body. The third candlestick from the left in the next chart
demonstrates a classic ‘Hammer’ candlestick. This indicator is highly
indicative of fresh new bullish momentum and, as such, strongly
suggests that the strength of the present bear trend is faltering.

So, how exactly do ‘Hammer’ candlesticks work and what


information can you extract from them? First you must realize that
candlesticks can interpret markets conditions more accurately when
they are displayed on trading charts utilizing the longer time-frames
from the daily upwards.
During the early stages of a daily hammer, the price of an asset
normally experiences strong selling pressure causing it to plummet.
However, a substantial new bullish momentum emerges later in the
day that vigorously rejects any further bearish weaknesses. The
strength of this movement is normally so powerful that it can cause
price to surge higher by closing above the central point of the
candlestick. A tail of significant size is generated by this process.
Essentially, the market has ‘hammered out’ a bottom when it
produces a ‘Hammer’ candlestick.

Very importantly, you must always ensure that a real ‘Hammer’ has
been created by confirming that its tail is at least double the size of
its body. In fact, the power of the ‘Hammer’ is directly proportional to
the size of the tail. In other words, bigger tails signify larger bullish
momentum.
Many traders exploit the ‘rule of two’ when using trading strategies
based on candlestick technology. Essentially, you should always wait
for the closure of a second candlestick following a ‘Hammer’ to verify
that its bullish intentions are valid. Alternatively, you can also deploy
a second totally different technical indicator to help you achieve this
objective.
Bullish Engulfing Candlestick Reversal Pattern

This formation comprises two primary candlesticks. The first is a


small bearish candlestick supporting short wicks and tails. The
second candlestick is a very large bullish one which completely
engulfs the size of the first one. The following diagram displays the
key features of the Bullish Engulfing pattern.

The first candlestick is often termed the ‘setup’ while the second is
referred to as the ‘confirmation’. The first candle normally possesses
a small body and is created towards the end of a significant bearish
trend.
The second candle is usually so large that it completely covers or
‘engulfs’ the setup one. In addition, the closing price of the
confirmation candle must definitely be higher than that of the setup
candlestick.
The bullish engulfing pattern normally indicates that the market is
forming a distinctive bottom and that the current bearish movement
is terminating. This formation is generated under two main trading
conditions.
1. When the bullish engulfing is formed towards the end of a
long bearish trend then it usually signifies that selling pressure
is waning rapidly and that buyers are starting to control the
market. This is often caused by new buyers being attracted to
assets posting very favorable discounted prices. As such, this
fresh surge in bullish optimism can be so large that it will
completely swamp the previous bearish momentum creating
the bullish engulfing pattern.
2. This pattern is also often generated when the price of an
asset is advancing within a strong bullish trend but has just
undergone a corrective dip by falling and bouncing against a
major support level. This particular trading condition can be
caused by buyers cashing in on their profits; buying orders
thinning out or sellers entering the market at preferential
prices.

Consequently, price will slip downwards before bouncing back higher


as a result of a fresh surge of buying interest. The ensuing reversal
is often accompanied by the creation of a bullish engulfing pattern.
As such, if you can learn how to effectively detect this formation,
then you will be able to identify new quality trading opportunities.

Very importantly, the effectiveness of the bullish engulfing pattern is


dictated by the size of the second confirmation candlestick. Larger
sizes are normally more indicative that price will reverse direction
and move upwards.
Three White Soldiers Bullish Reversal
Candlestick Pattern

This formation is a revered bullish reversal sign that is generated


towards the end of a bearish channel. The ‘Three White Soldiers’
consists of three bullish consecutive candles. Each of them posts a
closing value that is higher than that of the previous one. The next
diagram illustrates the ‘three white soldiers’.

The ‘three white soldiers’ is an easy pattern to identify as it simply


comprises three consecutive bullish candlesticks with each one
closing higher than its predecessor. The formation acquired its name
because it resembles three white solders standing in formation. By
studying the above diagram, you can also easily determine why this
pattern has gained a reputation as a bullish reversal indicator.
However, is it reliable at performing such a function?
This candlestick pattern is, in fact, very effective under most market
conditions at signifying the end of bearish trends and the emergence
of new bullish strength. For example, if you detect that price has
been range-trading for some time but have now identified the ‘three
white soldiers’ then you should prepare to execute long trades.
Similarly, recognizing this pattern during a well-defined bearish trend
signifies that new bullish momentum is beginning to emerge and to
control the markets. However, this pattern is less effective if detected
during bullish price movements as they are not considered to be very
efficient at defining continuations.
Despite gaining a well-deserved reputation for identifying bullish
reversals, you are still advised to seek additional confirmation
whenever you detect the ‘three white soldiers’. You can achieve this
objective by waiting and studying the next or fourth candlestick in the
sequence. You will be looking for signs confirming the bullish
recommendations of this candlestick pattern. Alternatively, many
traders prefer to use totally different technical indicators as
confirmation tools when trading strategies based on candlestick
technology.
The ‘three white soldiers’ can be displayed using many variations on
its standard pattern. For instance, the candles can have differing tail
(distance between lowest and closing prices) sizes; their length of
their bodies can vary dramatically as well as their overlapping
features. However, one of the major features of this pattern is that
the production of larger upward movements is normally indicative of
stronger bullish reversals.
Shooting Star Bearish Reversal Candlestick
Pattern

This famous formation is represented by just one candlestick that is


often created towards the end of a well-defined bullish trend. After
the candlestick opens, price surges higher during the early part of its
creation only to retract sharply later to generate an extremely large
wick, (difference between highest and closing prices) which ideally
should be double the size of the body. The central candle in the next
diagram illustrates a ‘shooting star’.

Shooting Stars have acquired an impressive reputation for detecting


bearish reversals. They have small bodies and a gap is often visible
between its opening price and the closing value of the preceding
candlestick. A distinction feature of this pattern is that its body should
not overlap the one of its predecessor. When you detect shooting
stars then you need to appreciate that they are a strong sign that the
strength of the current bullish trend is beginning to falter. They are
more effective on trading charts utilizing the longer time-frames from
the daily upwards.
Shooting Stars exhibit the same structure as the ‘invented hammer’
in that each possesses very long wicks but practically no tail.
However, whereas the invented hammer is used to detected bullish
reversals, the shooting star is deployed to identify bearish reversals.
The following diagram displays a shooting star in action.

A true shooting star will possess an almost zero-sized tail (distance


between its lowest and opening values). An important feature of the
shooting star is the size of the gap between its body and that of its
predecessor. The greater the size of this gap defines the significance
of the shooting star and its ability to identify a bearish reversal. A
large gap is a strong indication that a bearish reversal is imminent.
You can confirm that a gap exists and measure its size as follows.
Compare the opening and closing prices of the shooting star and
record the lower value. Again, perform the same task for the
preceding candlestick but this time register the higher value. If you
then detect that the lower value of the shooting star is greater than
the higher value of its predecessor, then a gap exists.
Dark Cloud Cover Bearish Reversal Candlestick
Pattern

This pattern comprises two candlesticks that are produced towards


the end of a bullish trend which consists of a large bearish
candlestick that follows a long bullish one. The last candlestick must
open above the highest value of its predecessor but then close at or
beneath the middle value of body of the first bullish candlestick. An
example of a Dark Cloud Cover is displayed in the following diagram.

Essentially, the Dark Cloud Cover is a bearish reversal pattern that


signifies that a top market could be forming and that the strength of
the current bullish trend is beginning to wane. This pattern performs
best when utilizing on trading charts exhibiting the daily time-frame
or higher. The pattern consists of a strong first bullish candlestick.
The subsequent one surges higher initially so that it opens above the
highest value of its predecessor. However, later price undergoes a
sharp reversal so that it closes both near to the lowest value
recorded during the current period and at or beneath the mid-point
value of its predecessor.
You can use the following features to detect a Dark Cloud Cover:
1. Price must be advancing in a well-defined bullish channel.
2. A long bullish candlestick is first identified.
3. A bearish candlestick is then created that displays an opening
value above the highest value posted by its predecessor.
4. This second bearish candlestick closes at or beneath the middle
value of the first bullish candlestick.
In order to achieve greater success with the Dark Cloud Cover, then
you must ensure that the formation demonstrates the important
feature. The second bearish candlestick must close deeply inside the
body of the first bullish candlestick. Most experts recommend that
the closing value of the second candlestick must be at least equal to
the mid-range value of its predecessor. Lower is better.
If this criterion is not achieved, then you are advised to seek
additional confirmation. You can achieve this objective by examining
the next or third candlestick in the sequence. If another bearish
candlestick is formed or if it gaps or closes lower than its
predecessor, then these should be sufficient indications
demonstrating that a bearish reversal is imminent.
Bearish Engulfing Reversal Candlestick Pattern

This revered pattern is an effective bearish reversal indicator that is


generated via the usage of two candlesticks. The first one displays a
bullish white body that is utterly engulfed by a second much larger
black bearish candlestick. The next diagram demonstrates a Bearish
Engulfing pattern depicted by the two central candlesticks.

The Bearish Engulfing Pattern is essentially represented by a


second large bearish candlestick which completely engulfs its
smaller bullish predecessor. Note, that the wick and tail of the first
candlestick does not need to be overshadowed by the second
candlestick in order for the pattern to be classified as a Bearish
Engulfing one. This formation has acquired an impressive reputation
for detecting bearish reversals especially using trading charts
exhibiting the daily time-frame or higher.
The psychology behind this formation is as follows. This pattern
begins to form after price has been advancing within a well-defined
bullish trend for some time. First signs are produced of diminishing
buying power by the production of a short bullish candlestick. This
effect is then accentuated by a strong sell-off which materializes in
the form of a much larger bearish candlestick which closes at or
beneath the mid-section of its smaller predecessor. This is a distinct
sign that bulls have lost control of the market.
An important feature of this pattern is the relative size of the bodies
of the two candlesticks. The first one must be very small while the
second must have a very large bearish body. As such, if this criterion
is achieved then it demonstrates a definitive reduction of bullish
influences in favor of bearish ones.
The speed of development of the second candlestick is also
important. This is because such a development will demonstrate that
the number of new bulls available is no longer sufficient to prevent a
substantial bearish slide. If a Bearish Engulfing pattern can present
such a feature then this is strong proof that a bearish reversal is
imminent.
Expects recommend that secondary confirmation should always be
attained validating the findings of new Bearish Engulfing patterns
before a new position is executed. You can achieve this objective by
waiting to see if the third candlestick in the pattern is also bearish.
Alternatively, you can utilize a completely different technical indicator
to accomplish this task as many other traders do.
Rising Three Methods Bullish Continuation
Candlestick Pattern

This pattern is normally generated during the middle of a current


bullish trend and is a strong indication that price will resume its path
higher after the structure has been completely formed. The Rising
Three Methods comprises five candlesticks.
The first candlestick exhibits a sizeable bullish body. The following
three candlesticks possess smaller bearish bodies with each one
closing beneath its predecessor. The last candlestick has a very
large bullish body that must close above the highest value of the
preceding four candlesticks of the pattern. The following figure
displays the Rising Three Methods formation towards the far right.

The Rising Three Methods is a continuation pattern depicting a brief


respite during a bullish trend and is definitely not indicative that a
serious reversal will occur. The pattern is categorized by an initial
long bullish candlestick followed by three consecutive bearish
candlesticks possessing much smaller bodies. These last three
candles indicate that buyers may have opted to remove some of
their profits from the table. A short corrective dip is normally
produced as a consequence.
However, an important feature of this formation is that these three
candles do not close outside the range of the highest and lowest
values of the very first bullish candlestick. The fifth candle in the
sequence must open above the closing price of its predecessor and
also close above the highest value recorded by the previous four
candlesticks of the pattern. The Rising Three Methods therefore
produces a temporary break in a bullish trend before price proceeds
to advance higher.

The trading psychology that creates this pattern is as follows. The


Rising Three Methods pattern denotes a brief rest by the market
during an extensive bullish trend. Many traders use this structure to
help them detect new quality trading opportunities which they can
then use to increase their long positions at discounted prices.
The pattern indicates that doubts have arisen that the current bullish
momentum may not be sustained any longer. This loss of faith is
demonstrated by the three middle bearish candlesticks. However,
confidence is then regained following the failure of price to record a
new low. As such, renewed vigor propels the asset to fresh highs
causing price to resume its bullish trend higher in the process.
The Upside Three Gap Bullish Continuation
Candlestick Pattern

This pattern is produced during a bullish trend and comprises three


candlesticks. The first two possess long bullish bodies that are
separated by a distinctive gap. The last candlestick sports a long
bearish body and closes by totally filling the fore-mentioned gap. The
right-side of the next diagram illustrates the Upside Three Gap
pattern.

The pattern can be readily identified by a second bullish candlestick


possessing an opening value that has gapped well above the closing
price of the first bullish candlestick. The third candlestick in the
sequence must then possess a bearish body with a closing value
that completely fills this gap. The ‘Upside Three Gap’ is a powerful
bullish continuation sign indicating that a strong bullish movement as
temporary stalled usually resulting from traders cashing–in profits.
This formation is normally generated when buyers are in control of
the market and price has been moving for some extensive time
within a well-defined bullish trend. A further surge of interest then
causes a second bullish candle to open by gapping higher. Profit-
taking subsequently produces a third bearish candlestick forcing
price to retract sharply so that it fills the gap.
Such a sequence of movement is very supportive of further upside
gains. This is because bullish gaps are renowned for creating strong
support levels. The gap-filling movement of the third candlestick is
termed the ‘reaction’ and normally results from investors taking
profits.
The Upside Three Gap pattern is a reliable indicator advising that a
bullish trend is very likely to continue after a short pause. This
formation exhibits many similar features to the Bullish Upside Tasuki
Gap formation. However, the major difference between the two is
that the latter’s third candle does not completely fill the gap produced
by the first two candlesticks.
Many experts advise that you should seek further confirmation
whenever you identify an ‘Upside Three Gap’ in order to validate that
price is really just taking a short respite before proceeding higher.
You can achieve this objective by waiting and studying the next or
fourth candlestick in the pattern. You need to verify that a bullish
candle is created or that it opens by gapping well above the closing
price of the third candle.
Bullish Separating Lines Continuation Candlestick
Pattern

This pattern is often generated during bullish uptrends and signifies


that the price of an asset is set to move even higher following a brief
pause. As the reliability of the ‘Bullish Separating Lines’ is not
particularly high, you are always advised to use additional
verification tools whenever you detect it.

This pattern consists of two primary candlesticks. The initial one


possesses a bearish body and is followed by an Opening Marubozu
candlestick. The shape of the second component is of major
significance because it must display a long bullish body; little wick
and no tail at all. This candlestick is a strong bullish indicator.
Another important feature of the ‘Bullish Separating Lines’ is that a
large bullish gap must exist between the opening price of the second
candle and the closing price of its predecessor. In fact, the opening
price of the second candlestick must be equal or higher than the
opening price of the initial one. The second component of this
pattern must also register a new high.
When buyers are in control of the market and price is moving
upwards within a well-defined bullish trend, they always become
nervous whenever they witness the creation of a lengthy bearish
candlestick, such as the initial one of the ‘Bullish Separating Lines’.
This is because such a development could indicate that sellers are
beginning to exert resurgent pressure.
As such, if the following candlestick opens by gapping so high that
its opening price matches that of its predecessor, then this is a very
welcome sign for buyers. If this latest candlestick can also register a
new high then buyers will acquire confidence that sellers have failed
to gain control and that the current bullish trend is still very much
alive and well.
An important attribute of this pattern, which defines its ability to
detect bullish continuations, is that the second candlestick must
display all the key features of an Opening Marubozu candlestick, i.e.
little wick, no tail and long bullish body. Experts always recommend
that you should wait to study the next or third candlestick before
executing a new trade whenever you identify ‘Bullish Separating
Lines’. You need to verify that either this additional candlestick is
bullish in nature; gaps significantly higher or attains a new high
during its lifetime.
Bearish on Neckline Continuation Candlestick
Pattern

This pattern is frequently encountered when the price of an asset


has been descending within a well-constructed bearish channel for
some extensive time. The ‘Bearish on Neckline’ is a bearish
continuation sign that indicates that the present bearish trend will
most likely continue following a short respite.
The pattern comprises two main candlesticks. The initial one opens
by gapping lower and possesses a bearish body. The second
component exhibits a bullish body but closes below the closing price
of the first candlestick. The right-hand side of the next figure
demonstrates the main attributes of the ‘Bearish on Neckline’.

The principle characteristics of this pattern is that the second bullish


candlestick closes as near as possible to the lowest value of the
initial bearish one when price is moving in a well-defined bearish
trend. In addition, a distinctive gap must exist between the opening
price of the first candlestick and the closing price of its predecessor.
The ‘Bearish on Neckline’ has required an impressive reputation for
advising that a current trend is set to extend lower as opposed to
undergoing a serious bullish reversal.
This pattern possesses many similarities with the Bullish Piercing
Line Pattern. The primary difference between the two is that the
closing price of the latter’s second bullish body pierces above the
closing level of the first bearish candlestick. The ‘Bearish on Neck’ is
a proven continuation indicator that is frequently generated during
bearish downtrends. The reliability of this pattern is very dependent
on the size of the first bearish candlestick. Greater length implies
larger bearish losses. Many traders interpret the primary meaning of
this pattern as a strong indication that the market is not yet ready to
form a bottom. As such, they subsequently prepare to increase their
short position holdings.
Research has demonstrated that the strength of the ensuring
downtrend increases if the trading volumes present during the
creation of the second candlestick are high. You are also advised to
seek additional confirmation whenever you detect the ‘Bearish on
Neck’ in order to verify that price is really set to plunge lower after a
brief pause. You can accomplish this task by studying the next or
third candlestick in the sequence. Look for a bearish body or a
significant gap lower.
Downside Tasuki Gap Bearish Continuation
Candlestick Pattern

This famous pattern possesses a three candlestick structure which is


normally created during a strong bearish trend. The ‘Downside
Tasuki Gap’ is a reliable continuous sign indicating that price is very
likely to recommence its downward path following a minor pause.
The initial two candles exhibit bearish bodies which are divided by a
significant gap. The third candlestick in the sequence possesses a
small bullish body which closes by only partially filling the fore-
mentioned gap. The right-hand side of the next figure displays all the
pertinent features of the ‘Downside Tasuki Gap’.

The most characteristic of this pattern is the distinctive gap created


between the first two bearish candlesticks. Essentially, the second
one must open by gapping substantially lower than the closing price
of the first candle. Such a movement often entices sellers to take
profits causing the creation of the third bullish candlestick which
does not completely fill this gap. This pattern is a proven bearish
continuation sign indicating that the current bearish trend will resume
following a brief respite.
You can detect the ‘Downside Tasuki Gap’ when price has been
declining in value for some extended time within a well-defined
bearish trend. Seller enthusiasm then creates another surge of
interest which produces a very distinctive gap between the first two
candles of the pattern. The main features of the third candlestick are
that it must open well within the body of its predecessor and fail to
completely fill the gap. This is a clear sign that buyers were not able
to muster enough momentum to reverse the current bearish trend.
The ‘Downside Tasuki Gap’ is a reliable bearish continuation pattern
which does not occur very often. An important feature of this
structure that determines its relevance and ability to predict a
continuation is the relative size of the first two bearish candlesticks.
To achieve optimum effect, these two bodies should be almost
identical in length.
Expert consensus recommends always seeking additional
confirmation whenever you identified this pattern. You can do so by
studying the next or fourth candlestick in the sequence. Confirm that
this candle is a bearish one or that its opening price has gap
significantly downwards with reference to the closing price of its
predecessor.
Bearish Thrusting Continuation Candlestick
Pattern

This pattern comprises two main candlesticks and is produced


whenever the price of an asset is declining in value within a well-
constructed bearish channel. The ‘Bearish Thrusting’ indicates that
the current downward is very likely to recommence its path
downwards after a brief respite. However, as the reliability of this
pattern is not especially high, you should always incorporate the
usage of additional techniques or tools in order to verify that price is
undeniably set to plummeted lower. The following diagram displays
all the main features of the ‘Bearish Thrusting’.

The main attribute that characterizes this two-candlestick pattern is


that a second bullish candlestick must produce a closing value that is
beneath the mid-section of the initial bearish one. In addition, a
distinctive bearish gap must be evident between these two
candlesticks so that the opening price of the second is considerably
lower than the closing price of the first candle. ‘Bearish Thrusting’
has acquired a good reputation at forecasting when bearish trends
will proceed lower as opposed to undergoing bullish reversals.
This pattern is indicative that a new bullish rally did not generate
enough momentum to terminate the current bearish trend. As such,
many traders interpret this structure as solid evidence that the
market is not yet prepared to define a bottom but is set to weaken
further. As the closing price of the second candlestick cannot register
a value that exceeds the mid-range one of the initial bearish candle;
most new buyers proceed to lose heart at that point allowing the
market to succumb to fresh bearish pressures.
The ‘Bearish Thrusting’ is not evaluated as being so effective at
identifying bearish continuations as other patterns, such as the
‘Bearish on Neck’. Experts advise seeking addition proof, whenever
you detect this pattern, in order to confirm that all fresh bullish
influences have petered out and that price is definitely set to drop
lower. You can accomplish this objective by verifying that the next
candlestick is bearish in nature. Other good signs are if this
subsequent candlestick gaps lower or if it achieves a new low during
its lifetime.
Best Brokers for Trading
I deal with trading brokers and platforms everyday and some are
much better than others. To make things easier I've included a list
below of 3 of the best places to trade with reasons for each.

Please have a look at my other books and send me any comments


you have on this book or anything at all!

Broker 1
Redwood - best welcome bonus and US friendly
www.redwoodoptions.com

Broker 2
Ioption - best training material (No US)
www.ioption.com

Broker 3
Cedar Finance - free unlimited practice account
www.cedarfinance.com
For more books, strategies and educational
materials
Visit us online at: www.TradeOpus.com

You might also like