Abandoned Baby Top
Abandoned Baby Top
Definition:
An Abondoned Baby Top is a rare bearish three bar reversal pattern that develops after an up leg. This pattern begins with an up gap followed by a doji or similar smaller candlestick. A down gap then occurs on the next bar leaving the doji "abandoned" at the high.
Background:
In the classic version of this pattern, the doji bar shadows are completely above the shadows of the first and third bars of this candlestick pattern. The two gaps in this pattern are often called "open windows."
Practical Use:
Technical analysts often use Abandoned Baby Tops as a sell signal. Additional confirmation in the form of a bearish tradable setup is often needed before the trader will open a short position.
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Inverted Hammer
Inverted Hammer
Definition:A Inverted Hammer is a single candlestick (regardless of real body color) bullish reversal signal that develops after a down leg. It opens lower, then trades higher, but closes back near its open.Background:
Conversely, if the candlestick is formed after an up leg where it opens higher, trades much higher, but then returns to close near its open, it is considered a Shooting Star.
Practical Use:
Technical analysts use Inverted Hammers as a potential buy signal. Additional confirmation is often needed in the form of another longer term bullish trade setup if needed.
 Bullish Doji Star
Bullish Doji Star
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Spinning Top High Wave
Spinning Top High Wave
Definition:
A Spinning Top Wave, also called a High Wave candle, is candlestick that has an open and close price near each other which produces a small real body and color is of no importance. They also have long upper and lower shadows that significantly exceed the length of the body. These types of candlesticks indicate indecision and subsequent consolidation.
Practical Use:
Technical analysts will often watch for Spinning Top High Wave candlesticks and then "join the sidelines". After such a volatile session, traders will often wait for additional confirmation of an upward or downward price movement.
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Evening Star
Evening Star
Definition:
An Evening Star is a three candlestick bearish candlestick pattern that occurs after an up leg and starts out with an up bar with a large real body. The second candle has a narrow range and gaps up on the open. The last bar opens with a gap down and then closes as a bearish candlestick below the midpoint of the body of the first bar.
Practical Use:
Technical analysts will often use the Evening Star Candlestick pattern as a bearish signal for selling opportunities. Additional confirmation in the form of a bearish trade setup is typically necessary before the trader will sell into a position.
 Bearish Engulfing
Bearish Engulfing
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