(Bullish)
Eighth Candle Reversal |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bullish
Prior Trend of Candlesticks: Bearish
Reliability of Candlesticks : Confirmation Required
Confirmation of Candlesticks: Suggested
Candlestick Patterns Key Reference |
DESCRIPTION
Bullish Eighth Candle Reversal pattern consists of eight candlesticks.
Bullish Eighth Candle Reversal is a reliable pattern that signal traders to know when a trend may end or reverse.
It can be used as an entry after consolidation period or retracement.
PATTERN RECOGNITION
1. Bullish Eighth Candle Reversal pattern can be identified by downtrend.
2. Refering to above diagram, we will see seven consecutive bearish candlesticks.
3. Then we will see the the eight bullish candlestick open slightly above the close of the previous candlestick and close slightly above the previous candlestick's open.
EXPLAINATION
The Bullish Eighth Candle Reversal pattern allow traders to anticipate when a trend may end or reverse.
The eight bullish candlestick which closes slightly above the previous open give a signal to sellers that the bearish momentum has come to the end of downtrend.
The Consolidation Patterns imply that the trend may have ended and may go sideways. There is a possibility of a reversal but would require confirmation in the next session.
POINT TO NOTE
A confirmation of trend reversal is required in a form of a bullish candlestick which open above or a gap up the previous candlestick close.
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 |
