Head and Shoulders Bottom

A Head and Shoulders Bottom on the USD/CHF daily chart A bullish reversal pattern defined by three prominent lows with a middle low (the head) that is lower than the other lows (the shoulders). The neckline is drawn above the two price highs that separate the head from the shoulders. Upward penetration of the neckline …

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Head and Shoulders

In technical analysis, a chart formation that resembles a human head and shoulders and is generally considered to be predictive of a price reversal. A head and shoulders top (which is considered predictive of a price decline) consists of a high price, a decline to a support level, a rally to a higher price than …

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Harami Japanese Candlestick

On a Japanese Candlestick chart, a two day reversal pattern that has a small body day completely contained within vertical range of the previous larger candle’s body. This formation suggest that the previous trend is coming to an end. The smaller the second candlestick, the stronger the reversal signal. See: Bullish Harami

Harami Cross Japanese Candlestick

On a Japanese Candlestick chart, a two day reversal pattern that is the same as the Harami, except that the second day is a Doji. See Bullish Harami Cross

Hanging Man Japanese Candlestick

On a Japanese Candlestick chart, the Hanging Man candlestick occurs when a security moves significantly lower after the open, but rebounds to close well above the intraday low. The Hammer and Hanging Man are short body candles with little or no upper shadow or wick, and a lower shadow at lease twice the height of …

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Dark Cloud Cover

On a Japanese Candlestick chart, Dark Cloud Cover is a bearish reversal pattern consisting of a black candlestick that follows a long bodied white candlestick during an uptrend. The long bodied black candle casts an ominous dark cloud over the preceding upward trend in price. The black candlestick opens at a new high and closes below …

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