News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • (Tech Special) Japanese Yen Technical Analysis: Broader Outlook Bearish, USD/JPY Eyes Key Trendline #Yen #USDJPY https://www.dailyfx.com/forex/technical/article/special_report/2021/05/12/Japanese-Yen-Technical-Analysis-Broader-Outlook-Bearish-USDJPY-Eyes-Key-Trendline.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/NMknREgiB4
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/DIJ6BUdT0V
  • 🇯🇵 Leading Economic Index Prel (MAR) Actual: 103.2 Previous: 98.9 https://www.dailyfx.com/economic-calendar#2021-05-12
  • 🇯🇵 Coincident Index Prel (MAR) Actual: 93.1 Previous: 89.9 https://www.dailyfx.com/economic-calendar#2021-05-12
  • 🇯🇵 Leading Economic Index Prel (MAR) Actual: 103.2 Previous: 98.7 https://www.dailyfx.com/economic-calendar#2021-05-12
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/Ewt9Enkdqy
  • Heads Up:🇯🇵 Leading Economic Index Prel (MAR) due at 05:00 GMT (15min) Previous: 98.7 https://www.dailyfx.com/economic-calendar#2021-05-12
  • Heads Up:🇯🇵 Coincident Index Prel (MAR) due at 05:00 GMT (15min) Previous: 89.9 https://www.dailyfx.com/economic-calendar#2021-05-12
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.61%, while traders in GBP/USD are at opposite extremes with 68.56%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/kEdSF6ojIK
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: -0.20% 🇨🇦CAD: -0.21% 🇯🇵JPY: -0.22% 🇪🇺EUR: -0.23% 🇳🇿NZD: -0.57% 🇦🇺AUD: -0.64% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/sz8V05hZds
Potential Candlestick Reversal Patterns

Potential Candlestick Reversal Patterns

Richard Krivo, Trading Instructor

In a recent webinar we were commenting on “selling on rallies” in a downtrend. (Essentially, that means a trader would wait for the pair to retrace against the trend, wait for it to stall and then sell the pair back in the direction of the Daily trend.)

The question was asked, how does a trader know (by the way, we never know for sure) when price action stalls that it is going to move back in the direction of the trend. My comment was that I would look for reversal candle patterns such as a morning star, evening star, spinning top or a doji around the area of the stall by price action. Also, if I was looking for the pair to move down, long wicks above the bodies a few of the candles would be good; or, if I was looking for the pair to move up, long wicks below the bodies would be a desirable sign.

To clarify what those candles and patterns look like on a chart, please refer to the chart below…

Potential_Candlestick_Reversal_Patterns_body_Potential_Reversal_Candlestick_Patterns.png, Potential Candlestick Reversal Patterns

Remember: the “potential” for change presented by each of the above does not mean that a change of direction will, in fact, take place.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES