Podcast
Questions and Answers
Think of it as an upside down three white soldiers pattern. This pattern is formed by three consecutive ______ candlesticks.
Think of it as an upside down three white soldiers pattern. This pattern is formed by three consecutive ______ candlesticks.
bearish
The dark cloud cover “phenomenon” signals the potential end of an ______.
The dark cloud cover “phenomenon” signals the potential end of an ______.
uptrend
The hanging man pattern is a ______ signal.
The hanging man pattern is a ______ signal.
bearish
The opening of each candlestick occurs at the previous candlestick’s closing price, and the closing price is lower than the opening price. This pattern is known as the ______ pattern.
The opening of each candlestick occurs at the previous candlestick’s closing price, and the closing price is lower than the opening price. This pattern is known as the ______ pattern.
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The three black crows pattern is particularly significant when it occurs at higher price levels or after a mature advance, indicating a potential decline in ______.
The three black crows pattern is particularly significant when it occurs at higher price levels or after a mature advance, indicating a potential decline in ______.
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During its trading period, the price starts to decline significantly and the red candlestick closes below the midpoint of the first candlestick’s body. This pattern suggests that the sunny days of the current uptrend are coming to an end. Bulls are losing control, and the ______ are taking over.
During its trading period, the price starts to decline significantly and the red candlestick closes below the midpoint of the first candlestick’s body. This pattern suggests that the sunny days of the current uptrend are coming to an end. Bulls are losing control, and the ______ are taking over.
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A hammer candlestick pattern is a bullish reversal pattern that is most accurate at the bottom of a ________.
A hammer candlestick pattern is a bullish reversal pattern that is most accurate at the bottom of a ________.
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The inverted hammer pattern indicates the end of a downtrend and a possible trend reversal to the ________.
The inverted hammer pattern indicates the end of a downtrend and a possible trend reversal to the ________.
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The bullish pin bar is characterized by a long lower shadow, with a small body and a relatively short shadow on the ________ end.
The bullish pin bar is characterized by a long lower shadow, with a small body and a relatively short shadow on the ________ end.
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The hammer pattern signals that sellers are losing power and are being outnumbered by ________.
The hammer pattern signals that sellers are losing power and are being outnumbered by ________.
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Technical Analysis is the use of past market data to analyze stocks and make better trading decisions based on the idea that supply and demand will determine a stock’s price more accurately than the company’s intrinsic or ________ value.
Technical Analysis is the use of past market data to analyze stocks and make better trading decisions based on the idea that supply and demand will determine a stock’s price more accurately than the company’s intrinsic or ________ value.
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The market discounts everything and prices move in ________ according to assumptions in Technical Analysis.
The market discounts everything and prices move in ________ according to assumptions in Technical Analysis.
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The ______ star pattern is the upside-down version of the morning star pattern.
The ______ star pattern is the upside-down version of the morning star pattern.
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The ______ candlestick forms at the lower end of the first candlestick in the morning star pattern.
The ______ candlestick forms at the lower end of the first candlestick in the morning star pattern.
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The three ______ soldiers pattern is a bullish reversal pattern consisting of three green candlesticks with small shadows.
The three ______ soldiers pattern is a bullish reversal pattern consisting of three green candlesticks with small shadows.
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The three black ______ pattern is a bearish reversal pattern that is more accurate when it forms at the end of an uptrend.
The three black ______ pattern is a bearish reversal pattern that is more accurate when it forms at the end of an uptrend.
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The ______ star pattern suggests that the price will likely rise soon.
The ______ star pattern suggests that the price will likely rise soon.
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Traders look for the ______ star pattern as a signal to buy.
Traders look for the ______ star pattern as a signal to buy.
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Study Notes
Candlestick Patterns
- The Three White Soldiers pattern is a bullish reversal pattern consisting of three green candlesticks with small shadows, often forming in a downtrend.
- The Three Black Crows pattern is a bearish reversal pattern formed by three consecutive bearish candlesticks, often occurring at higher price levels or after a mature advance.
Bearish Patterns
- The Dark Cloud Cover pattern is a two-candle pattern that signals the potential end of an uptrend, where the first candle is a long green candlestick, followed by a long red candlestick.
- The Hanging Man pattern is a bearish signal that occurs after an uptrend, characterized by a small body positioned at the top of the candle and a long lower shadow.
- The Evening Star pattern is a bearish reversal pattern consisting of three candlesticks, indicating the reversal of an uptrend into a downtrend.
Bullish Patterns
- The Morning Star pattern is a bullish reversal pattern consisting of three candlesticks, indicating a potential trend reversal to the upside.
- The Hammer pattern is a bullish reversal pattern that occurs at the bottom of a downtrend, signaling that sellers are losing power and buyers are gaining control.
- The Inverted Hammer pattern is a bullish reversal pattern that looks like the Hammer pattern, but is upside down, indicating the end of a downtrend and a possible trend reversal to the upside.
- The Bullish Pin Bar is a bullish reversal pattern characterized by a long lower shadow, with a small body and a relatively short shadow on the other end.
Technical Analysis
- Technical Analysis (TA) is the use of past market data to analyze stocks and make better trading decisions.
- TA is based on the idea that supply and demand will determine a stock's price more accurately than the company's intrinsic or "true" value.
- Technical analysts look at the price movement over time, trading volume, and other historical market data to find trends and patterns that can be used to predict future price movements.
Assumptions in Technical Analysis
- The market discounts everything.
- Prices move in trends.
- History repeats itself.
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Description
Test your knowledge on bearish candlestick patterns including the three black crows pattern and the dark cloud cover. Learn how to identify these patterns and their significance in predicting potential price declines.
