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 Multiple Candlestick patterns wherein we discussed about how to trade each of these patterns, including how to enter a trade following the completion of a multiple candlestick pattern and how to place stop losses.
While most of the patterns discussed are continuation patterns, there are a few that are reversal patterns. The multiple candlestick patterns that we covered in the webinar included:
- Morning Star
- Evening Star
- Morning Doji Star
- Evening Doji Star
- Abandoned Baby Bottom
- Abandoned Baby Top
- Tri-star Bottom
- Tri-star Top
- Up Gap Tasuki
- Down Gap Tasuki
- High Price Gapping Play
- Low Price Gapping Play
- Three Black Crows
- Three White Soldiers
- Rising Methods
- Falling Methods
If you missed the webinar or if you want to revisit the webinar again, click here to watch the video.