Top 10 Candlestick Patterns To Trade the Markets

One of the best ways to determine whether you should be investing in a particular stock, or commodity at that point in time is by studying the Top 10 Candlestick Patterns. This particular pattern was created by Mark Douglass and David Bach over sixty years ago and it has proven to be one of the most reliable indicators of when the stock market is going to perform well or poorly. If you are a new trader or if you are an experienced investor it is important for you to learn about this pattern. You will want to take the time to learn more about this so that you are prepared for when the times are right to trade.
The bullish candlestick pattern has been around since May of 1920 when it was used by the English mechanical trader named John Sewale. He would actually lay out his trades day by day on the table in front of him and whenever he spotted a candle that was beginning to rise he turned it over. This is an excellent method for a day trader because it gives you a head start on making money before the markets open up. If you are able to catch a bullish candle before it begins to rise it is very possible that you can buy the shares at this price and you can sell them for a nice profit.
The bullish pattern is considered to be the best indicator for the bullish market. This is also the stock market’s version of the strength indicator. There are some similarities between the bullish and bearish versions of this pattern. Both are characterized by the bullish trend continuing upward. There are also some differences between the two as well.
In the bullish pattern the price usually begins to move up but then quickly reverses. It may jump up again after some time. In the market this type of movement is called a reversal. When it reverses to the upside it is an indication that the stock is on the upswing. The top of the pattern may continue to rise until it resumes it direction.
Another example of this bullish pattern comes from the bear market. If the stock is falling it will usually reverse to the downside before recovering again. The top of the pattern is often considered to be a continuation pattern, which is used to signal the start of a new uptrend.
A reversal pattern can be used in any market. For instance if the stock is bullish it may enter a consolidation phase. This is a period when the stock rises for a short period of time and then begins to fall back. If you find a top in a candlestick pattern it means that the stock is about to make a strong comeback. The best time to trade this type of stock is when the price is close to breaking out of the consolidation phase.
A continuation pattern is a bullish pattern that continues to move upwards in price. It can come on either side of a bull market. If you find a top in this pattern it means that the bulls are about to have a big run. The best time to trade this stock is when it is about to make a big move and is poised to breakout.
Bull and Bear Candlestick Patterns are very useful for any type of stock market investing. They help you decide when to enter a particular stock and when to exit it. In addition they are great for helping to determine if a stock is a good buy or a good sell. Most traders who use these techniques find that they are very successful in earning them decent profits.

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