Reversal candlestick patterns1.Bullish Engulfing : The first candlestick is a red one, and the second is green. A green one “engulfs” the red one because the body has a lower opening price and a higher closing price
2. Evening Star : You need three candlesticks to see this Evening Star pattern, a green candle with a long body, a short green or red candle, and a red candlestick.
3. Dark Cloud : The price gaps higher and then sells off, creating a candlestick that shows a closing price lower than the midway point in the previous candle.
4. Spinning Top : A spinning top is a candlestick pattern having a short real body with long upper and lower shadows.
5. Tweezzer Bottom : The Tweezer Bottom candlestick pattern is a bullish reversal candlestick pattern that is formed at the end of the downtrend. It consists of two candlesticks, the first one being bearish and the second one being bullish candlestick.
6. Two Black Gapping : The bearish two black gapping continuation pattern appears after a notable top in an uptrend, with a gap down that yields two black bars posting lower lows.
Darkcloudcover
SUDARSHAN CHEMICAL.... LET'S LEARN...Friends. I thought let's learn this kind of candle pattern seen in Sudarshan chemicals. Based on my observations as well as from the teachings of few technical experts, the following pattern is described.
'When an unusually long green candle is formed followed by a red candle on top of the green candle, reversing the direction, this eventually ends in further red candles forming almost getting the stock price back to the start of the long green candle'.
We can see large volumes traded on the first day, but on the next day, the sellers seem to dominate.
This pattern is neither a dark cloud cover nor a bearish harami... But it is also a bearish reversal indicator. If anyone has an idea about this pattern, please share it for all of us to learn. Though better in higher time frames, this pattern works well even in smaller time frame charts.
Again, this is not a sure-shot signal for going short with Sudarshan chemicals. Let us watch, observe, and study how this pattern works.
This pattern will fail if a green candle forms tomorrow.