Continuation Candlestick I

In this section we will see pattern of candlestick that indicate a continuation in the trend. The patterns of Continuation will be classified in the bullish patterns and bearish patterns.

Bearish Patterns

Falling Three Methods



This pattern appears in a bearish trend, which in a bearish market trend rested before continuing the trend. This break in the trend can be seen in a number of small candles which are within a range after a strong movement in the first candle.

One possible explanation for this training is that the market is digesting the big move in the first candle. These small ranges up to a significant economic data or report. These periods of calm and a small range of Trading in the common market. This pattern Falling Three Methods is confirmed if there is a bearish candle that leads to new minimum prices thus continuing the trend.

Number of Candles Intermediate: In a perfect pattern the number of candle would be three. But in reality this number may vary and may take two, four or even five candles. The candles can be an intermediate or a Doji star, bearish or bullish.

Intermediate shadows of Candles: We should note that the shadows of the candles are within the intermediate range of minimum and maximum of the first candle in this way to have a strong signal below. Falling Three Methods in this is important for the highest achieved since if a shadow is traded over the top of the first candle, we will doubt that a possible continuation of the bearish trend.

Characteristics

• In a bearish trend, first appear a bearish candle.


• The second, third and fourth small candle candles upside will be within the range of the first candle.


• The fifth candle continuous bearish trend which sets new minimum.

Downside Tasuki



These two candles of this training the bearish trend with the second candle making a gap (hole). The third candle shows that buyers are taking advantage of low prices to buy. But because the third candle does not close the gap created between the first and second candle, the traders believe that the bearish trend would continue.

But as other patterns we saw, this patterns also requires a confirmation which will appear in the fourth candle should be bearish for in this way have a confirmation that the bearish trend.

Forex Markets: The gaps are not usual in the Forex market, and therefore may not see this formation in the Forex market. A version of this candle should have two bearish candles suggesting a bearish movement. The pattern would end with third bullish candle which should not close above the opening price of the previous candle. This version should be less significant Forex and more common, requiring further confirmation.

Characteristics

• The first candle is a candle bearish.


• The second candle is a bearish candle too, but with a gap between the first and the second candle.


• The third candle is a candle upward closing the gap within the previous two candles.

Three Line Strikes



As long as the trend is a downward trend established, traders will see this training as a sign that the downward trend may still continue.

The first three candles indicate a clear bearish movement. Until the third candle we can see the Three Black Crows training which is a strong bearish signal. The rally that we see in the fourth candle which raises again the opening price of training which indicates that some sellers have decided to close their positions in sales, but if it is not a sign of trend change.

Because this weak pattern, many traders look for confirmation in the next candle should be bearish.

Clearly explain the Three Black Crows and that training is training in Line Three Strikes. Saying that while the formation Three Black Crows bassist has a connotation in the case of being in an uptrend may indicate a change.

Characteristics

• Después de una tendencia bajista tres candles bajistas seguidas continúan el movimiento bajista, cada candle cerrando mas abajo que la candle anterior ( que conforman la formación Three Black Crows).


• La cuarta candle es una candle alcista que cerrara cerca del precio de apertura de la primera candle.

In Neck



In this training with a bearish candle that continues the downward trend. The second candle opens with a small gap below the closing price of the first candle, then a rally until the close of the previous candle. This suggests that the rally that occurs in the second candle, when the market is in decline, this rally shows a momentary stop, yet the market is still continuing the bearish trend and it is possible that in the following falling candles.

Characteristics

• The first candle will be a long bearish candle.


• The second candle is a candle bullish, below the opening of the first candle and closed by little in the body of the first candle.