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Articles tagged “reversal”

The Evening Star: Three Candles at the End of a Rally

The evening star is the mirror of the morning star — a three-candle bearish reversal. Learn the conditions, the confirmation most people skip, and why it fails more often than its bullish twin.

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The Inverted Hammer: A Long Upper Wick Inside a Decline

The inverted hammer appears after a decline and looks identical to a shooting star. Learn why it reads as bullish, why confirmation is mandatory, and how it gets misread.

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The Morning Star: A Bottom Reversal Told in Three Candles

The morning star is a three-candle bullish reversal pattern. Learn what each candle must do, why the middle one matters most, and where the pattern is worth noticing.

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The Shooting Star: What a Long Upper Wick Is Telling You

The shooting star is a single candle with a long upper wick that appears after an advance. Learn the criteria, how it relates to the inverted hammer, and why location beats shape.

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What Is the Head and Shoulders Pattern? A Beginner's Guide

Learn how the head and shoulders chart pattern works, how to spot the neckline, and how traders read it as a reversal — with a simple practice drill.

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Double Top and Double Bottom Patterns: M and W Shapes

The double top (M) and double bottom (W) are classic reversal patterns. Learn how they form, where the confirmation level sits, and how to recognise them fast.

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Bullish and Bearish Engulfing Patterns Explained

The engulfing pattern is a two-candle signal where one candle fully covers the previous one. Learn the bullish and bearish versions and how to read them.

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The Hammer Candlestick: What It Is and How to Read It

The hammer is a single-candle pattern with a long lower wick. Learn what it suggests, where it matters, and how to recognise it quickly with practice.

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The Doji Candlestick: When the Market Can't Decide

A doji is a candle with almost no body — open and close nearly equal. Learn what it signals about indecision, its main variations, and how context changes its meaning.

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