While Candle and Bar charts provide the same piece of information (namely the open, the high, the low, and the close for each period), did you know that candles provide greater details about the emotional aspect of price movement. That's right. Candles make it a lot easier to decipher the psychology of buyers and sellers. There are several well known candlestick patterns that can broadly be classified into two groups: one on the basis of the number of candles that are required to complete a candlestick pattern and the other on the basis of whether the patterns are reversal patterns or continuation patterns.
A few weeks back, we had hosted a webinar on Dual Candlestick patterns wherein we discussed about how to trade each of these patterns, including how to enter a trade following the completion of a dual candlestick pattern and how to place stop losses.
While most of the patterns discussed are reversal patterns, there are a few that are continuation patterns. The dual candlestick patterns that we covered in the webinar included:
- Piercing Line
- Dark Cloud Cover
- Bullish Engulfing
- Bearish Engulfing
- Bullish Harami
- Bearish Harami
- Bullish Counterattack Line
- Bearish Counterattack Line
- Bullish Separating Line
- Bearish Separating Line
If you missed the webinar or if you want to revisit the webinar again, click here to watch the video.