(Bullish)
Rickshawman |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bullish / Sideway
Prior Trend of Candlesticks: Bearish
Reliability of Candlesticks : 3rd Grade
Confirmation of Candlesticks: Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
Bullish 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 bullish candlestick.
PATTERN RECOGNITION
1. Bullish Rickshawman pattern can be identified by a long downtrend followed by a bottom reversal.
2. Refering to above diagram, firstly we will see a long bearish candlestick.
3. Then we will see the second candlestick move with a gap down and then move up and return to the equal level on close which form long shadows at both ends. That indicate that bear is in confusion state about the continued momentum of the downtrend.
EXPLAINATION
The Bullish Rickshawman pattern is identified during a long downtrend.
It starts with a long bearish candlestick then the second candlestick move with gap in the direction of a downtrend
and then it move up 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 downtrend.
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 bearish 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 |
