Categories
Classic patterns

How to trade the Descending Triangle pattern?

A descending triangle forms with an horizontal resistance and a descending trendline from the swing highs Traders can use the descending triangle pattern as a signal to enter a short position at breakdown The opposite technical pattern is the ascending triangle What is a Descending Triangle pattern? Also referred to as the ‘falling triangle’, the […]

Categories
Candlestick patterns

How to trade a Morning Star candlestick pattern?

Key takeaways A morning star pattern is a bullish 3-bar reversal candlestick pattern It starts with a tall red candle, then a small candle and finishes with a tall green candle The middle candle reports indecision in the market The opposite pattern is the evening star pattern Statistics to prove if the Morning Star pattern […]

Categories
Candlestick patterns

What is a Marubozu candlestick pattern and how to trade it?

Key takeaways A marubozu candle only has a body. It doesn’t have wick or tail. Bullish marubozu is a long green body candle Bearish marubozu is a long red body candle Statistics to prove if the Marubozu pattern really works What is the Marubozu candlestick pattern? Marubozu means “bald head” or “shaved head” in Japanese, […]