(Bullish)
Wash 'n' Rinse |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bullish
Prior Trend of Candlesticks: Bearish
Reliability of Candlesticks : 2nd Grade
Confirmation of Candlesticks: Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
(Bullish) Wash 'n' Rinse pattern is an extremely reliable indication from a bottom reversal into a long term uptrend.
You can identified it as a double bottom and supported by a long shadow.
PATTERN RECOGNITION
1. (Bullish) Wash 'n' Rinse pattern can be identified by a downtrend followed by a bottom reversal.
2. Refering to above diagram, firstly we will see a bearish candlestick then the second candlestick open with a gap down and then test at a new low which form a long shadow before returning as a piercing pattern or some other bullish reversal pattern.
3. After a few candlesticks later, we will see another new low is tested before gapping away which form a long shadow and then trend up for the long term uptrend.
EXPLAINATION
The (Bullish) Wash 'n' Rinse pattern is formed at the bottom of a downtrend.
It looks like a double bottom which you can identified by its long shadows.
A new low is tested and form a Piercing Pattern or other Bullish reversal pattern which form a long shadow.
Then after a few candlesticks later, new low is tested again but this time sellers again have no strength to push the price further down which form a double bottom with a long shadow.
Having said that, it
clearly indicated that seller have no strength and buyers are pushing the price up showing that bull is now in control.
The 2nd grade reversal patterns are reliable group of reversal patterns.
POINT TO NOTE
Refering to above diagram, we should note that the first candlestick retest and break a new low which form a long shadow.
After a few candlesticks later, it break another new low which form a long shadow again which often occur at extreme level of support level.
(Bullish) Wash 'n' Rinse pattern looks like a double bottom pattern but it is identified by long shadows.
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 |
