Three Basic Candlestick Formations to Improve Your Timing
The study of candlestick charts is mysterious to many. You might recognize the basic significance of the chart patterns, but not know how to spot strong and reliable reversal signals.
This article demonstrates and explains three of the strongest candlestick reversal patterns. These are the bullish or bearish abandoned baby, the bullish white soldiers and the bearish black crows, and the bullish and bearish engulfing pattern.
These simple but powerful indicators are formed as chart patterns, giving you a lot of information just with a glance. The more time you spend studying candlestick patterns, the more comfortable you are going to be. The origin of candlesticks traces back several hundred years. Candlesticks originally were developed in Japan to track rice futures. Many of the early candlestick experts were able to demonstrate an ability to anticipate market trends and reversals.
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