Market Update
Continuation Patterns
Upside Tasuki Gap
Upside Tasuki Gap is a three candle bullish continuation pattern. The pattern occurs in an uptrend. The first and second candles are white and separated by a gap. The third candle is black and opens within the body of the second candle and does not close the gap. For a complete printable reference
Falling Three Methods
This Japanese Candlestick chart formation shows the market is pausing before continuing a downtrend. In technical parlance this is described as a bearish continuation pattern. A long black body is followed by three small body days, forming a short uptrend, however each is fully contained within the
Rising Three Methods
Rising Three Methods is a five candlestick bullish continuation pattern. The pattern occurs in an uptrend where the first day is a long bodied white candle. This is followed by three small bodied candlesticks where each trends lower and closes inside the body of the first candlestick. The pattern is
Bullish Three Line Strike
Three Line Strike is a four candlestick continuation pattern. The bullish three line strike occurs in an uptrend. The first three candlesticks are made up by the Three White Candlesticks pattern. The final candlestick in the series is a long bodied black candlestick that opens above the third candle
Downside Gap Three Methods
Downside Gap Three Methods is a three candlestick bearish continuation pattern. The formation occurs in a downtrend, beginning with a long bodied black candlestick. Then, a second long bodied black candlestick gaps lower. The third and final candlestick in the series is long bodied and white and man
On Neck Line
The bullish On Neck Line formation occurs during an uptrend with a gap open higher and long bodied white candlestick creating a new high. The second candlestick is black but does not close lower than the previous candle.
Downside Tasuki Gap
A continuation pattern on a Japanese Candlestick chart beginning with a long black body followed by another black body that has gapped lower than the first. A white follows body and opens within the body of the second day, and partially closes the gap between the first
Dead Cat Bounce
The Dead Cat Bounce is a continuation pattern that looks in the beginning like a reversal pattern. It begins with a downmove followed by a significant retracement. The price fails to continue higher and falls back downwards, taking out the prior low.
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