Candlestick Charting For Dummies, 2nd Edition

Chapter 7

Working with Bullish Double-Stick Patterns

IN THIS CHAPTER

Understanding double-stick patterns that signal a trend reversal

Working with double-stick patterns that tell you a trend will continue

Compared with the single-stick patterns in Chapters 5 and 6, double-stick patterns are difficult to come by. But these patterns can be very powerful and profitable if you put in the time and effort to monitor them.

I tackle several double-stick patterns in this chapter, each of them consisting of two days. I’ll refer to the first day as the setup day, and I’ll call the second day the signal day. When you’re looking for double-stick patterns, you’ll have to start paying attention to the possibility that a pattern will develop on the setup day, and you’ll react (trade) if you see what you need to see on the signal day.

In this chapter, I cover some double-stick patterns that signal a trend reversal and a few that signal a trend continuation. The reversal signals are more fun because they help you outsmart the crowd and buy near the end of a trend. The trend-confirming signals are useful if you’re already on the right side of a trend or if you’re considering going against a trend and are looking for a signal that can kindly tell you to reconsider.

If you want to go hunting for ...