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  1. #1
    Rookie Member LondonGeezer's Avatar

    Candlestick formations question !!!

    Hi Guys

    Hope you're all having a great Easter!

    I've been studying candlestick formations but I'm seeing contradicting information across different sites when comparing the same candlestick formation. For example the "three black crows"..

    1 site says that the three bearish candles will each start below the previous and end at a lower point and this signifies a reversal in the trend. Another site said the same but added that a fourth candle should start at a lower point than the third (last) bearish candle and rise to close above the highest point of the first bearish candle and this would successfully complete the reversal signal.

    I am new to this and don't want to learn something that ends up being incorrect.. can anyone advise me on where to find solid information on all the different candlestick formations please?

  2. #2
    Legendry Member willyw's Avatar
    Quote Originally Posted by LondonGeezer View Post
    Hi Guys

    Hope you're all having a great Easter!

    I've been studying candlestick formations but I'm seeing contradicting information across different sites when comparing the same candlestick formation. For example the "three black crows"..

    1 site says that the three bearish candles will each start below the previous and end at a lower point and this signifies a reversal in the trend. Another site said the same but added that a fourth candle should start at a lower point than the third (last) bearish candle and rise to close above the highest point of the first bearish candle and this would successfully complete the reversal signal.

    I am new to this and don't want to learn something that ends up being incorrect.. can anyone advise me on where to find solid information on all the different candlestick formations please?

    This is the correct one for 3 Black Crows:
    This pattern indicates a strong reversal in the market. It is characterized by three normal or long
    candlesticks decrementing downwards. The opening of each day is slightly higher than previous close
    and prices progressively close at lower levels. This staircase like behavior signals the reversal of the
    trend.

  3. #3
    Legendry Member milos's Avatar
    Hello!

    Welcome to Communitraders!

    I can advice you to use hammer candlestick or shooting star. It exists hanging man also.

  4. #4
    Legendry Member willyw's Avatar
    There are a total of 97 candlestick patterns. Memorizing the names is not easy and to remember the patterns is not easy, too. Just spot some common patterns and master it.

  5. #5
    Legendry Member Michael Hodges's Avatar
    1) candlesticks formations are graded on their strength relative to other levels such as support/resistance, trendlines top or bottom of ranges etc.

    2) three black crows is not so much a reversal pattern, or a continuation patter, as it is a sign of strength in bearishness.. .or in bullishness (3 white soldiers). Three days of strong movement in one direction is a sign that the majority of the market agrees with sentiment. 3 down days bearish, 3 up days bullish. But... 3 crows/3 soliders aren't just any old 3 candles, they need to be long, close near the bottom/top depending on direction, and be large or enormous relative to other long candles. 3 medium black candles just don't mean the same as 3 long black candles. Capiche?
    "Great Googely Moogely" ... Frank Zappa

  6. #6
    Legendry Member willyw's Avatar
    Yes, Micheal got the point there. Analyzing candlesticks have to be flexible as some candles looks similiar to each other

  7. #7
    Legendry Member Michael Hodges's Avatar
    Yeah, think about how many candles are dojis. . Lots and lots, now, how many of them actually signaled a reversal? Not that many which means most of the dojis are SPINNING TOPS while only a few are hammers, or dragonfly's, or tombstones etc.
    "Great Googely Moogely" ... Frank Zappa

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