Market Analysis & Insights

Introduction You might see this pattern once or twice a year, but when you do, pay attention. The Bullish Abandoned Baby is a specific type of Morning Star characterized by gaps on both sides of the middle candle. The middle candle is left completely alone (“abandoned”) at the bottom of the chart. How to Identify […]

Introduction Similar to the “Inside Up,” the Three Outside Up is a confirmation pattern. It takes the classic Bullish Engulfing pattern and adds a third day of buying to seal the deal. How to Identify It The Psychology The Engulfing candle (Day 2) was the shock to the system. The third candle (Day 3) is […]

Introduction Conservative traders often skip the “Bullish Harami” because it is not a strong enough signal on its own. The Three Inside Up solves this problem. It is simply a Bullish Harami followed immediately by a third confirmation candle. How to Identify It The Psychology The Harami (first two candles) signals the brakes are on. […]

Introduction Most reversal patterns show a battle. The Three White Soldiers pattern shows a massacre. This pattern consists of three consecutive long green candles that march steadily higher, signaling that the bears have completely given up and a new trend is fully established. Shutterstock Explore How to Identify It The Psychology This is not a […]

Introduction The Morning Doji Star is the aggressive sibling of the standard Morning Star. The key difference is the middle candle: instead of a small body, it is a Doji (where open and close prices are equal). This pattern suggests that the market didn’t just slow down—it completely froze before reversing. Shutterstock Explore How to […]

Introduction The Morning Star is widely considered one of the most reliable reversal patterns in technical analysis. Just as the morning star (planet Venus) appears before sunrise, this pattern appears right before a new uptrend begins. Unlike single-candle spikes, this pattern unfolds over three days, giving it significant structural weight. How to Identify a Morning […]

Introduction The Homing Pigeon is an intermediate pattern that often tricks novice traders. It looks like the market is dropping, as both candles are red. However, savvy traders know that this specific formation actually signals that the support is holding. It is essentially a “Bullish Harami” where the baby candle is also red. How to […]

Introduction The Bullish Harami Cross is a strict variation of the standard Harami. The difference? The “baby” candle is not just small—it’s a Doji (where Open equals Close). This is considered a more potent signal than the standard Harami because it represents total market paralysis before a potential explosion. How to Identify It The Psychology […]

Introduction Most reversal patterns scream “Buy Now!” with big green candles. The Bullish Harami is different—it whispers. “Harami” is the Japanese word for “pregnant.” In this pattern, the first large candle is the “mother,” and the second small candle is the “baby.” It indicates that the intense selling pressure has suddenly stopped. How to Identify […]

Introduction Markets rarely turn on a dime; they often need to “test” a level twice before reversing. Tweezer Bottoms are the visual representation of this test. This pattern is unique because it is defined by the lows of the candles, not necessarily their body color or shape. How to Identify Tweezer Bottoms The Psychology Think […]