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7 Strong Trend Reversal Candlestick Pattern is Bearish and Bullish

Ultimate Candlestick Reversal Pattern For Trading the IQ option

Currently trading forex binary option and the more popular that a lot of newbies who want to try to capitalize on the business of trading.

Trading binary options are one way to get money in a short time.

But I need to know to profit consistently a trader should be able to predict or analyse where further price movement direction.

Keep in mind the trading business have a high-risk strategy and required accurate analysis capabilities in order to achieve victory.

In this article, I will share how to analyze or predict the direction of price movements using candlestick charts.

To be able to find out where the next direction of the trader must learn the pattern candlestick patterns.

Candlestick patterns there are four, namely:
  1. Candlestick reversal Patterns
  2. Candlestick continuation Patterns
  3. Candlestick patterns consolidation
  4. Candlestick patterns post consolidation
In this article, I will explain the reversal candlestick pattern first.

Candlestick patterns is a reversal candlestick formation indicating an impending reversal of the direction of movement of the current trends.

For example, the current trend is a trend goes up then with the advent of one reversal candlestick pattern in the near term trend will be turned down.

So it will be exploited by traders to open a position trading.
ultimate candlestick reversal pattern

For reversal candlestick patterns are grouped into 4 namely candlestick patterns reversal level 1, 2, 3 and 4.

In the previous article, I have explained the reversal candlestick patterns level 1.2 and 3.

Read also:

It is time to discuss a reversal candlestick pattern of level 4.

7 CANDLESTICK REVERSAL PATTERN LEVEL 4


Candlestick Reversal Pattern Level 4 is a candlestick pattern rarely appear and require the confirmation of the next session.
trend reversal candlestick pattern

Here are some candlestick patterns that indicate an impending change of direction in the near future:


1. THREE BLACK CROWS
magic candlestick reversal pattern

A Bearish Reversal Pattern type: Level 4

Description:
  1. When an uptrend price opened with a gap up but eventually closed down so that it formed a bearish candle.
  2. The next session opens in the middle of the body first candle and closed lower than the first candle.
  3. The next session of the same, that is opened in the middle of the body first candle and closed lower from the previous candle.

Psychology:

When the market is experiencing an uptrend price and able to make a higher high but eventually closed down and two of the next candle is bearish candle shows sellers have begun to overwhelm the market.

The price, which was opened in the middle of the previous candle body shows buyers trying to get back control but failed.

Note:
  • This pattern is typically followed by a constant increase in volume.

2. THREE IDENTICAL CROWS
candlestick bearish reversal pattern chart school

A Bearish Reversal Pattern type: Level 4

Description:
  1. When an uptrend price opened with a gap up but eventually closed down so that it formed a bearish candle.
  2. The next session opened with the same close candle first candle and closed lower than the first candle.
  3. The next session of the same, that is opened on the first candle and body close closed lower from the previous candle.

Psychology:

When the market is experiencing an uptrend price and able to make a higher high but eventually closed down and two of the next candle is bearish candle shows sellers have begun to overwhelm the market.

Prices opened the same with previous close candle shows strong sellers.

Note:
  • This pattern is typically followed by a constant increase in volume.

3. THREE WHITE SOLDIERS
key reversal candlestick pattern

Type: Bullish Reversal Pattern Level 4

Description:
  1. When a price downtrend opened with a gap down but then closed strong.
  2. The next session opened in the range body first candle (on at least half the body first candle) and closed above the high of the previous candle.
  3. the third Session is also opened in the same range body first candle (on at least half the body first candle) and closed above the high of the previous candle.

Psychology:

When the market is undergoing a downtrend and price were able to make a lower low but eventually closed up and two of the next candle is bullish candle shows buyers have begun to overwhelm the market.

The price, which was opened in the middle of the previous candle body shows sellers trying to get back control but failed.

Note:
  • This pattern is typically followed by a constant increase in volume.

4. CONCEALING the BABY SWALLOW
candlestick pattern bearish reversal

Type: Bullish Reversal Pattern Level 4

Description:
  1.  When are going bearish downtrend marubozu.
  2.  The next session also is bearish marubozu.
  3.  this third Session be inverted hammer.
  4.  the fourth Session was opened with a gap up but then the price moves down under the previous candle close-up so bearish marubozu was formed an outside day.

Psychology:

When the market is undergoing a downtrend the appearance of inverted hammer gives a sign of starting to loss of momentum.

Note:
  •  The reversal that occurs is usually followed by increased volume.
  •  This pattern requires confirmation the next session, namely, the price moves up and closed above the high of the fourth session.

5. The LADDER BOTTOM
7 key candlestick reversal pattern

Type: Bullish Reversal Pattern Level 4

Description:
  1. When are going bearish downtrend marubozu.
  2. The next session also is bearish marubozu.
  3. third Session also be bearish marubozu.
  4. the fourth session of this form of an inverted hammer.
  5. the fifth Session was opened with a gap up and then the price moves up closed above the high of the previous three sessions.

Psychology:

When the market is undergoing a downtrend the appearance of inverted hammer gives a sign of starting to loss of momentum.

Note:
  • The reversal that occurs is usually followed by increased volume.
  • This pattern requires confirmation the next session, namely the price moves up high above the fourth session.

6. STICK SANDWICH
harami candlestick reversal pattern

Type: Bullish Reversal Pattern Level 4

Description:
  1. While downtrend bearish candle occurs.
  2. The next session opened on top of the close first candle and closed above the high of the first candle.
  3. The next session gap up but prices later reversed course and closed with the same close first candle.

Psychology:

This pattern shows he was a strong support level which could not be penetrated so give the possibility of reversal.

Note:
  • This pattern is typically followed by a decrease in volume.
  • This pattern requires confirmation the next session, namely, the price moves up and closed above the high of the third session.

7. UNIQUE THREE RIVER BOTTOM
iq option candlestick analysis

Type: Bullish Reversal Pattern Level 4

Description:
  1. While downtrend bearish candle occurs.
  2. The next session opened above the middle of the first candle and body shape of a hammer.
  3. The next session gap down IE opened below the body of the second candle but was still above the low second candle.
The price finally closed strengthened but still under the close second candle.

Psychology:

This pattern shows he was a strong support level which could not be penetrated. Hammer gave the signal that the downtrend will end.

Note:
  • This pattern is typically followed by a decrease in volume.
  • This pattern requires confirmation the next session, that the price moves up above the first candle.
  • Increasingly long shadow on the hammer then the greater potential reversal occurs.

8. THREE STAR IN SOUTH
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Type: Bullish Reversal Pattern Level 4

Description:
  1.  While downtrend bearish candle occurred with the shadow under the
  2.  The next session be opened bearish candle on top of the close candle with a low near the low first candle
  3.  third Session be a candle with a short body and gap down below the second candle close but still was above the low second candle.

Psychology:

This pattern shows he was a strong support level which could not be penetrated. The third form of candle with a short body shows the market lost momentum through the gap down.

Note:
  • This pattern is typically followed by a decrease in volume.
  • This pattern requires confirmation the next session, that the price moves up above the high of the first candle.

That's some price direction reversal candlestick pattern which is very important to provide the basics in executing the open position trading.

Don't miss out as well to learn:
I.e. If one pattern candlestick continuation then it will strengthen the trend of price movement is going on at the moment.

Hopefully, this article can be useful for you in profit consistently on binary trading and forex.
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