TradersLog 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 …
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
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
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 …
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 …
The Hammer is a bullish reversal candlestick. Hammer candlesticks occur when price moves significantly lower after the open, but rebounds to close well above the low. In a perfect hammer, this tail is twice the length of the body and the candlestick will have no upper shadow or wick. The smaller the body and the …