Skip to Main Content
Candlestick Charting For Dummies®
book

Candlestick Charting For Dummies®

by Russell Rhoads
April 2008
Beginner to intermediate content levelBeginner to intermediate
358 pages
11h 48m
English
For Dummies
Content preview from Candlestick Charting For Dummies®

Working with Bullish Three-Stick Trending Patterns

In addition to the trend reversal patterns that take three days to develop, there are also a handful of three-day trending patterns. These patterns usually include a long white candle followed by a gap of some sort. Generally, the gap or the low of the first day of the pattern may serve as a useful support level to let you know when the prevailing trend is still intact.

Three-day patterns have three uses for traders as follows:

bullet If you’re considering buying a stock but hate to pay up when the price has been rising, three-day bullish trending patterns can give you confidence that the price you pay is as good as the price is going to be for a while.

bullet If you’re interested in shorting, a three-day bullish trending pattern can tell you when to hold off for just a little longer to allow for the trend to provide you with a better price to use in your trade.

bullet If you’re shorting a stock, a three-day bullish trending pattern can tell you that it’s time to buy back and move on, because the trend definitely isn’t your friend.

In this section I describe a number of three-stick trending patterns and how you can incorporate them in your trading ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Candlestick Charting Demystified

Candlestick Charting Demystified

Wayne A. Corbitt

Publisher Resources

ISBN: 9781118051900Purchase book