Candle Sticks Patterns +Cannon Pro FX Trader + Futures Trading Levels for July 10th
Posted By:- Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
- The evening and morning star candlestick patterns occur at the end of upwards/downward trends respectively and tend to indicate reversal patterns.
- The names come from the star shaped formation of the arrangement.
- As you can see from the image below, the first candlestick is in the direction of the trend, followed by a bullish or bearish candle with a small body. The third candlestick is seen in the direction of the reversal, ideally closing passed the halfway point of the first candlestick.
- Trading this candlestick pattern will require a confirmation candle in the direction of the respective reversal – for example, traders will look for a bearish candle after the evening star.
- A bullish or bearish engulfing candlestick pattern may indicate reversal patterns.
- A bullish engulfing candlestick formation shows bulls outweigh bears. As the pattern below shows, the green body (bulls) covers completely the first candlestick (bears).
- A bearish engulfing candlestick pattern is small green (or bullish) candle followed by a larger red (bearish) candle immersing the small green candle.
- The Doji candlestick chart pattern is associated with indecision in the market of the underlying asset. This could mean potential reversal of the current trend or consolidation.
- This pattern can occur at the top of an uptrend, bottom of a downtrend, or in the middle of a trend.
- The candlestick itself has an extremely small body centered between a long upper and lower wick.
More to follow and in between try out some of these formations on our FX demo below.
Futures Trading Levels
Order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained.