Page 145 - THE MARKET WHISPERER

THE MARKET WHISPERER 14 3

Common Reversal Patterns

Doji A bullish pattern formed at the base of movement
when, after several down trending candles, a
candle appears showing that the open and closing
prices are identical. Doji indicates perfect balance
between buyers and sellers: in other words,
indecisiveness, and usually indicates possible
pattern reversal.

Dragonfly A bullish pattern created at the base of movement
Doji similar to the doji, but it also shows a wide range
bottoming tail indicating that control has been
taken by buyers.

Gravestone A bearish pattern created at the peak of movement,
Doji similar to the doji, but with the addition of a wide
range topping tail indicating that control has been
taken by sellers.

Abandoned A “daily” bullish pattern at the base of movement.
Baby The uniqueness of this pattern is that the closing
price of the day prior to this doji is higher than the
Dark Cloud highest price of the doji’s tail, and the open price
Cove of the next day’s trade is higher than the doji tail’s
highest price.

A bearish pattern where the black candle covers
more than half of the clear candle’s movement,
in the opposite direction to the stock’s overall
movement.

Engulfing A bullish pattern in which the clear candle covers
more than the length of the dark candle, in the
opposite direction to the stock’s overall trend
(the dark candle is fully shadowed by the clear
candle).

Evening A bearish pattern where the doji heading the
Doji Star trend indicates pattern reversal, and the dark
candle following it moves down to at least below
half the body of the clear candle preceding it.

Evening A bearish pattern. At the trend’s peak is a narrow
Star range candle indicating pattern reversal. The
candle following it drops to at least below the
halfway mark of the clear candle prior to the
narrow range candle. The narrow range candle
could be clear or dark.