Here are the 12 candlestick patterns that every trader should know and train themselves to spot. You can trade these patterns by itself without any indicators. In my research I have found them to be extremely powerful in predicting reversal in stocks. If you plan to trade them, they can actually be very good risk reward type of setups.
I have divided them into
They are actually the opposite of each other and therefore if you learn one, you will be very quick to learn their opposite counterpart. If you only learn 12 candlestick patterns in your whole trading career, these candlestick patterns are all you need to survive and make money in the markets.
To learn more about the patterns in detail please visit the Japanese Candlesticks Page in the stock market course.
Perhaps you might want to print the above two diagrams and paste it near to your trading desk. Why? Because you will make a lot of profits and avoid a lot of pitfalls if you learn to spot these patterns in stocks.
Without further delay let us look at many chart examples below so we can see the true power of these candlestick patterns.
Oh before that, let me add another two pattern that I find very useful and frequently appear in charts as well. They are the bullish one white soldier and the bearish one black crow.
Dec 03, 21 09:52 AM
Here are a list of stocks that have broke out or about to break out. Breakout stocks can often give us a good reward to risk ratio.
Dec 03, 21 07:22 AM
Here are a list of stocks that are at their 50 MA and 200 MA. The 50 day moving average and 200 day moving average can be a support area where stocks bounce off
Dec 03, 21 05:59 AM
How will the US stock market work in December? Will there be a rebound? Will the stock market continue to go higher?
Dec 01, 21 09:24 AM
Apple is one of those stocks that we should look at almost every day. The reasons is because it is a component of the Dow Jones, the S&P 500 and the Nasdaq.
Nov 30, 21 09:11 AM
Are the markets going to continue to move higher? Is it in an uptrend or downtrend and where are the support and resistance?