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ADVANCED CANDLESTICK PATTERNS

TOP 9 ADVANCED CANDLESTICK PATTERNS

Candlestick patterns is the powerful advanced visual approach to technical analysis. Candlestick patterns is a advanced technical tool to judge the following of market through buying selling on a forex chart. Candle exhaust themselves to give light to men.

Table of Contents

KNOW TOP 9 ADVANCED CANDLESTICK PATTERNS

Encapsulates news, views, and decision of traders to define a future market direction on any forex pair.
The introduction of candlestick chart(in the 1990s) have led to increased clarity on forex price action analysis.
Candlestick charts are performed over bar charts or line charts.
Forex price action is analyzed using advanced. forex candlestick chart formation or patterns.

A BEARISH CANDLESTIC:

A BULLISH CANDLESTICK:

1. THE SIGNAL TOP CANDLESTICK PATTERNS :


After a significant uptrend, the market forms a higher high( in comparison to the previous candle )
And then prise falls to post a strong Bearish close( on a present candle).


SENTMENT THE SIGNAL TOP CANDLESTICK PATTERNS:

Sellers enter in large numbers as Bearish Market Sentiment is reached hence causing a price reversal. A strong signal top occurs: After a prolonged (extended) or significant prise move in an uptrend.

Elliott wave analysis with candlestick signal top:


Elliott wave analysis also measures the degree of strength of a signal top. For examples-In a 5 wave advanced, a signal top is most powerful at wave 5 termination position when compared to a signal top at wave 3 and wave 1 termination respectively.


Two key variations of a signal top candlestick patterns:

  • Higher high the previous candle and a close below the midpoint of a present candle.
  • Higher high the previous candle and a strong close on the present candle.

2. THE SIGNAL BOTTOM CANDLESTICK PATTERNS :


After a significant (prolonged) move in a downtrend, market Frome a lower low ( in comparison to the previous candle)
And then prise falls to post a strong Bullish close( on a present candle).


SENTMENT THE SIGNAL BOTTOM CANDLESTICK PATTERNS:

A signal bottom brings an end to Bearish Market Sentiment as sentiment changes to Bullish market sentiment ad buyers take control of the market.A strong signal bottom occurs:After a prolonged (extended) or significant decline in price on any timeframe.


Elliott wave analysis candlestick signal bottom:

Elliott wave analysis proves invaluable in anticipating the future market move after a signal bottom formation.

Two key variations of a signal bottom candlestick patterns:

  • Lower low the previous candle and a close above the midpoint of the present (or the signal bottom) candle.
  • Lower low the previous candle and a strong close on the present candle.
ADVANCED CANDLESTICK PATTERNS

3. THE BULLISH ENGULFING CANDLESTICK PATTERNS:


Formed of two candles- the second candle engulfs the entire real body of the first candle at a significant price low

SENTMENT THE BULLISH ENGULFING CANDLESTICK PATTERNS:

  • A strong reversal pattern that initiates a Bullish Market Sentiment.

Elliott wave analysis the bullish engulfing candlestick patterns:

Three key guidelines for Bullish engulfing patterns:

  • The market must be in a clearly defined downtrend.
  • The second candle in this prise action pattern must engulf the real body of the first candle.
  • Both candles must be of the opposite color (i.e Bearish and Bullish respectively)
ADVANCED CANDLESTICK PATTERNS
ADVANCED CANDLESTICK PATTERNS



4. THE BEARISH ENGULFING CANDLESTICK PATTERNS:


Formed of two candles- after an uptrend second candle engulfs the entire real body of the first candle at a significant prise high.

Elliott wave analysis bearish engulfing candlestick patterns:


Filter out of the strong (in terms of pips)
vs Weak Bearish engulfing patterns based on the wave count.


Three key guidelines for Bearish engulfing patterns:

  • The market must be in a clearly defined uptrend.
  • The second candle in this prise action pattern must engulf the real body of the first candle.
  • Both candles must be of the opposite color (i.e Bearish and Bullish respectively) to validate the formation.
ADVANCED CANDLESTICK PATTERNS
ADVANCED CANDLESTICK PATTERNS



5. THE DOUBLE BULLS CANDLESTICK PATTERNS:


After an established downtrend, a market forms two Bullish candles with consecutive higher closing prices near a significant prise low

Sentiment double bulls in forex price action:

Changes to Bullish forex Market Sentiment as the double bulls patterns indicate buying strength ahead.


Three key guidelines double bulls in forex price action :

  • A strong double bulls patterns appear after an established downtrend as sudden buying strength comes as a surprise to Sellers.
  • Must reflect a steady rise in closing price. On the other hand, a sharp increase indicates prise reaching an overbought state on the forex market.
  • Insides price candles ( a candle that fails to breach the high and low of previous prise candles) are not a part of the double bulls patterns.
ADVANCED CANDLESTICK PATTERNS
ADVANCED CANDLESTICK PATTERNS



6. THE DOUBLE BEARS ADVANCED CANDLESTICK PATTERNS:


After an uptrend, a market forms two Bearish candles with consecutive lower closing prices near a significant prise high.

Sentiment double bears in forex price action:

Changes to Bearish forex Market Sentiment as the double bears patterns indicate selling strength ahead.


Three key guidelines double bears in forex price action:

  • A strong double bears patterns appear after an established uptrend as sudden selling strength comes as a surprise to the buyer.
  • Must reflect a steady rise in closing price. On the other hand, a sharp increase indicates prise reaching an oversold state on the forex market.
  • Insides price candles ( a candle that fails to breach the high and low of previous prise candles) are not a part of the double bear’s patterns.
ADVANCED CANDLESTICK PATTERNS
ADVANCED CANDLESTICK PATTERNS



7. THE SHOOTING STAR CANDLESTICK PATTERNS:


One candle formation with a large upper shadow or tail ( almost or more than double of the real body) and a small real body after a clear price uptrend.

The sentiment the shooting star in forex price action:


After a solid opening, bulls lose control over the markets as prices close on heavy Bearish market sentiment.


Key guidelines for a shooting star formation in forex price action:

  • It must appear after a defined uptrend in a forex market.
  • The significance of a shooting star increase if the market opens with a gap.
  • A gap is a sign of early buying strength during the opening of a session before sellers take control by the end of the session.
  • A no-gap situation is considered as the first warning of a reversal insight and not a reversal itself.
  • The real body of a shooting star can be of any color.
ADVANCED CANDLESTICK PATTERNS
ADVANCED CANDLESTICK PATTERNS



8. THE HAMMER ADVANCED CANDLESTICK PATTERNS:


One candle formation with a lower shadow or tail ( almost or more than double of the real body) and a small real body after a clear price downtrend.

A sentiment the hammer in forex price action:


After a solid opening, bears lose control over the markets as prices close on heavy Bullish market sentiment.

Key guidelines for a hammer formation in forex price action:

  • It must appear after a defined downtrend in a forex market.
  • The significance of a hammer formation increases if the market opens with a gap.
  • A gap is a sign of early selling strength during the opening of a session before buyers take control by the end of the session.
  • A no-gap situation is considered as the first warning of a reversal insight and not a reversal itself.
  • The real body of a hammer can be of any color.
ADVANCED CANDLESTICK PATTERNS
ADVANCED CANDLESTICK PATTERNS



9. THE MAGIC DOJI CANDLESTICK PATTERNS:


A one candle formation where the opening and closing price of a candle is the same with long lower and upper shadows.

Sentiment the magic Doji in forex price action:

  • A long-legged Doji represents the indecision and confused state of the forex market in both uptrend and downtrend.
  • A long-legged Doji signal potential reversed if:
  • The following candle (or candles) confirm the reversal.
  • The forex market is overbought or oversold when Doji appears.
  • There are not multiple doji’s ( one after the other) at market high or market lows.
  • A clear price rally or decline before a Doji is a must- i.e a Doji within a tightly ranged or sideways forex market is of no significance.
ADVANCED CANDLESTICK PATTERNS
ADVANCED CANDLESTICK PATTERNS

Tag: Candlestick pattern, Forex Candlestick pattern, Advanced Candlestick pattern, Top Candlestick pattern.

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