The body must engulf the body of the candle before it. If wicks are not engulfed, engulfing pattern is still valid. Now it could be a good moment, for instance, to look on lower time frame to see what is happening there. There were actually early SWAT signals followed by another signal which is not marked.

The next candlestick has a long white body which closes in the top half of the body of the first candlestick. The bearish Falling Method consists of two long black lines bracketing 3 or 4 sm […]

Each session opens at a similar price to the previous day, but selling pressures push the price lower and lower with each close. Before you start trading, it’s important to familiarise yourself with the basics of candlestick patterns and how they can inform your decisions. Candlestick patterns are used to predict the future direction of price movement. Discover 16 of the most common candlestick patterns and how you can use them to identify trading opportunities. None of the information on […]

The shooting star candlestick has a small body at the lower end of the trading range and a long upper wick. It forms during an uptrend and indicates that buyers tried to drive prices higher, but sellers stepped in to pressure prices lower to near the opening price. The shooting star candlestick is a sign that sellers are ready to be in control during the succeeding time periods. A bullish engulfing pattern is a 2-candlestick formation that will form during a downtrend. The first candlestick wil […]

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. A candlestick is a type of price chart used in technical analysis that displays the high, low, open, and closing prices of a security for a […]