Thursday, January 9, 2020

Which 15 Japanese Candlestick reversal patterns do I use?

These are the 8 Japanese Candlestick bullish reversal patterns I use to confirm buying longs near or at MA levels.

1. Doji
2. Bullish Engulfing
3. Hammer
4. Bullish Harami
5. Morning Star
6. Bullish Kicker
7. Piercing Pattern
8. Inverted Hammer

These are the 8 Japanese Candlestick bearish reversal patterns I use to confirm buying shorts near or at MA levels.

1. Doji
2. Bearish Engulfing
3. Shooting Star
4. Bearish Harami
5. Hanging Man
6. Evening Star
7. Bearish Kicker
8. Dark Cloud Cover

You can look these patterns up on the internet.

The bigger the pattern the more reliable it is.

These patterns function best after long and strong trends resulting in oversold or overbought conditions in the Slow Stochastics. In most cases these patterns become only valid after a strong candle in the opposite direction of the preceding trend.