(Bullish)
Stalled Pattern |
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 Stalled pattern consists of two candlesticks.
The first candlestick have a long body. The second and third candlestick have a small body.
The second candlestick body is near the bottom of the first long bearish candlestick's body or below it.
Bullish Stalled pattern is recognized during an uptrend, it signals a stalling out of an downtrend.
PATTERN RECOGNITION
1. Bullish Stalled pattern can be identified by downtrend.
2. Refering to above diagram, we will see three bearish candlestick (body get smaller) of each trading session getting smaller.
3. Then we will see the fourth bullish candlestick opens slightly higher than the close of the previous bearish candlestick and reverses the trend and close slightly above the previous bearish candlestick open.
EXPLAINATION
The Bullish Stalled pattern is a obvious signal of a loss of bullish momentum as seen in each candlesticks trading smaller and smaller.
The spinning top found at the bottom of the prior downtrend inidcate that the market is resting. The next bullish candlestick confirm the end of a downtrend and consolidation might happen next.
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 open.
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 |
