Yesterday, I posted on the bearish version of the Separating Lines pattern. Today, it’s just for the bulls! Separating Lines (Bullish) Basics The concept is simple for the Separating Lines pattern. The bears take control for a day within a bullish trend, put up a longer marubozu candle, and the bull
Often times when price reaches an inflection point, there is a degree of balance that is exhibited in the price. However, that is not the case with the Separating Lines candle pattern. In this bearish case, the price is reaching a euphoric peak before quickly falling into the valley. This sharp reve
What do you think of when you look at the opening gap and rally today in Apple Inc (NASDAQ: AAPL)? My first thought was Meeting Lines. If you said something different, you of course would be wrong! All kidding aside, the pattern today was really interesting and instructive as a bullish reversal patt
The last few days has been a feeding frenzy in the options market as a potential infrastructure vote appeared to be close. It’s not hard to work downstream from this spending behemoth to identify who might be a beneficiary of the passage of the policy. Clearly the options market on Thursday decided
Sometimes the price can quickly reach an extreme after an opening gap lower. With Bullish Belt Hold patterns, the bears are quickly exhausted, and the price begins to advance to close near the high of the period. The ability to stage a significant intraday reversal higher is a strong tell that the b
Since we’re in the midst of earnings season, many companies announce either after the market closes or before the market opens. As a result, the opening price may be disconnected from the rest of the chart. The failure to overlap trading ranges is called a gap or window. Window’s can give you an ind
Is there a more bullish sounding name than three white soldiers? Now, with modern charting packages, you can make your soldiers whatever color you want, but the point is that the real body is hollow, thus taking on the background color of your chart. With the price opening lower and ending higher, i
Inflation is becoming increasingly felt by consumers as prices have been rising at or near historic rates. As a result, the term stagflation is becoming part of the public discourse. Of course, former Obama administration economist, Jason Furman, took some heat for tweeting that current inflationary
After a weak open, the market appears to be rallying to a higher high today compared to last Friday. The type of pattern is fairly common and is a bullish indication. The pattern is called a bullish engulfing because the real body is “engulfing” the previous period’s body. Today’s continuation follo
One of the great things about candle patterns is the visual that the name conjures up. One of the first patterns that most people identify with that matches what the trader envisions is a Hammer. The idea of a hammer pounding or hammering out a bottom is very descriptive, easy to identify, and even
