Plain-English guides to how the forex and commodities markets work.
A small body with unusually long wicks on both sides -- extreme volatility and disagreement within a single period.
A candle followed by one that gaps sharply the other way with no overlap at all -- one of the…
The bearish mirror of rising three methods -- a downtrend pausing to consolidate before continuing lower.
A slightly stronger bounce than on-neck or in-neck, but still one that usually falls short of a genuine reversal.
Three candles within a downtrend showing shrinking ranges and rising lows -- selling pressure drying up gradually rather than reversing…
A large bullish candle followed by a small bearish candle contained inside it -- a rally suddenly losing steam.
A doji with unusually long wicks on both sides -- a more extreme version of market indecision than a standard…
Decline, pause, strong recovery -- one of the most recognized three-candle bottoming patterns.