Technical analysts want to know three things
- Is the price in an up trend?
- Is the price in a down trend?
- When will it reverse or change trend?
A reversal pattern can be bearish or bullish, depending upon whether it appears at the end of an uptrend (bearish engulfing pattern) or a downtrend (bullish engulfing pattern).
The first day is characterized by a small body, followed by a day whose body completely engulfs the previous day's body.
At the close Friday October 24, 2008 many gold stocks completed a bullish engulfing pattern
Candlestick charts provide graphic reversal patterns. The Candlestick Pattern below is a good example of a Bullish Engulfing Pattern – note how the white body “engulfs” the previous day – a small down day black body
Bill Carrigan
- Is the price in an up trend?
- Is the price in a down trend?
- When will it reverse or change trend?
A reversal pattern can be bearish or bullish, depending upon whether it appears at the end of an uptrend (bearish engulfing pattern) or a downtrend (bullish engulfing pattern).
The first day is characterized by a small body, followed by a day whose body completely engulfs the previous day's body.
At the close Friday October 24, 2008 many gold stocks completed a bullish engulfing pattern
Candlestick charts provide graphic reversal patterns. The Candlestick Pattern below is a good example of a Bullish Engulfing Pattern – note how the white body “engulfs” the previous day – a small down day black body
Bill Carrigan
Posts
2 comments:
so we got an inside bar today, can it be a possible reversal to yesterday's outside bar?
The trand is down, and that, IMHO, has a high channce of being the path of least resistance until the trend changes.
Good observation but reversal patterns are more important if they appear on weekly charts - I watch the daily because often the daily will lead the weekly
BC
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