(Bearish)
Rickshawman |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bearish / Sideway
Prior Trend of Candlesticks: Bullish
Reliability of Candlesticks : 3rd Grade
Confirmation of Candlesticks: Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
Bearish Rickshawman pattern is a long legged doji that signals a major fight between the bulls and bears which see the candlestick push to a new high then to new low and then push to the equal level.
The volatility of the market remain unchanged with long shadows at both ends of the bearish candlestick.
PATTERN RECOGNITION
1. Bearish Rickshawman pattern can be identified by a long uptrend followed by a top reversal.
2. Refering to above diagram, firstly we will see a long bullish candlestick.
3. Then we will see the second candlestick move with a gap up and then move down and return to the equal level on close which form long shadows at both ends. That indicate that bull is in confusion state about the continued momentum of the uptrend.
EXPLAINATION
The Bearish Rickshawman pattern is identified during a long uptrend.
It starts with a long bullish candlestick then the second candlestick move with gap in the direction of a uptrend
and then it move down and return back near to the opening price which form long shadow at both end.
That shows that the market is in a confusion state about the continued momentum of the uptrend.
This 3rd grade reversal pattern is a reliable group of reversal pattern which may require confirmation in the next session.
POINT TO NOTE
If there is no gap or the rickshawman is within the body of previous bullish candlestick, it is likely that a consolidation will happen. This requires a confirmation on the third candlestick.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
