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What is the Dark Cloud Cover candlestick pattern? Definition The dark cloud cover is a bearish top reversal or trend reversal pattern. It is present in an uptrend and indicates a potential weak uptrend. It is a two-candlestick pattern and looks like the piercing pattern. Since it is a bearish trend reversal pattern, the dark cloud…

What is the Evening Star pattern? An evening star candlestick pattern is a stock-price chart pattern. Technical analysts use it to detect when a trend is about to reverse. It is a bearish candlestick pattern and it consists of three candles: The first part of the evening star pattern is a large bullish green candle. The bulls are…

What is the Harami candlestick pattern? Even though the word Harami appears in the Hindi language that is not what the context of this article refers to. The Harami which is applicable here is an old Japanese word which means pregnant or conception. With this image in mind, it will be easier to grasp the candlestick…

Traders often look for signs of indecision in the market where selling pressure goes down and leaves the market flat. This is where Doji candles can be seen as the market opens and closes at the same level or very close to the same level. The indecision makes way for a bullish move because the…

What is the Morning Star pattern? Overview A morning star is a visual three candlesticks pattern. Technical analysts usually interpret it as a bullish sign. It forms following a downward trend and it shows the start of an upward climb. It is a sign of a reversal in the previous price trend. Traders hunt for the…

In most instances, the stop-loss for any trade taken on the basis of a marubozu candlestick should be low or high of the candle. Although marubozu is a strong candlestick pattern, it is wise to avoid extremely small (less than 0.5 percent range) or long candle (over 5 percent range).  A candle that is extremely…

The color of the candlestick shows that either the sellers or buyers have full control of the market. The style of trading will vary depending on the type of marubozu. Before entering a trade, it is advisable for you to wait for another confirmation pattern or candle. Trading with Bullish Marubozu The absence of a…

Marubozu candlesticks can be found on all stock charts and all time frames. Depending on who controlled the day, they can either be bullish or bearish. They are used with technical analysis to show how a stock traded for the day. Usually, stock trading is a competition between buyers and sellers. There are days when one side…

It is fairly easy to identify a marubozu pattern because it is a single candlestick having a real body without any kind of shadows. Typically, when bullish, they are white or green on stock charts and when bearish, they are red or black. In bearish marubozu, the open price is equal to the high price and the close price…