2 Price-Bars Pattern

Bullish Engulfing

 

 
 When found in a downtrend:

• Bullish candle opens lower than

  previous candle’s close, closes

  higher than previous candle’s open

• Potential sign that trend is reversing

• Indicates control has shifted from
  sellers to buyers

Bullish Engulfing

Bearish Engulfing Candle

  
When found in a uptrend:

• Gap up: Bullish sign

• But: Bulls only push prices up

  slightly before bears take over and

  push prices much lower

• Potential sign that trend is reversing

• Indicates control has shifted from

   buyers to sellers

                   Bearish Engulfing

Dark Cloud Cover 

• Bullish candle closes below the

  middle of previous candle

• Rejection of Gap: Bearish sign

• Retracement: Additional significance

                       Piercing Line Pattern

• Bearish candle closes below the

   middle of previous candle

• Rejection of Gap: Bullish Sign

• Retracement: Additional significance

                             Harami

• Bearish Harami

– Large bullish, followed by small bearish

– Gap down, unable to retrace

_Uncertainty entering the market

• Bullish Harami

– Large bearish, followed by small bullish

– Gap up

_Reversal Pattern  

Harami

Tweezer Top & Bottom

• Bearish Tweezer Top

– Day 1 Close about equal to Day 2

   Open

– Occurs during an uptrend (closes

   near the high)

– Sentiments reverses completely the

   next day

• Bullish Tweezer Bottom

– Occurs during downtrend (closing the

  day near the lows)

– Sometimes eliminates entire gains

   from previous day

Tweezer Bottom

BACKGROUND

Tweezer Top