Bullish Unique Three River Bottom

 

This Pattern will form with three
candles

Bullish unique
three river Bottom pattern will form when the price is in down trend. The first
candle will form as a long black candle as the price will close lower than the
open price. The Second candle will also be a black candle and looks like a Hammer. 
The second candle will form an new low price than the first candle low
price and closes above the first candle close price. Third candle opens with a
gap down but the low price of third candle will be higher than the second
candle. How long the shadow of second candle the trend reversal will be very
strong. That mean the low price must be very far from the low price of first
candle. However the trend will be reversed but the confirmation must be necessary
with the upcoming candle.

Confirmation:

·        
Gap
up starting of next candle

·        
White
candle formation

·        
Higher
closing 

Where the
confirmation candle closes or trades above the open price of the first candle
there one can take a long position that mean one can enter the market or can
buy the share in stock market or a currency pair in Forex market.

Hammer:

This is a type
of candle stick which will form with four prices for a predetermined period
that may be one minute, five minutes, ten or fifteen minutes or etc.

Identification of Hammer:

The candle
stick Hammer can be formed when the price closes lower than the open price with
a long low price. It can be said that long tail bearish candle.

The candle
stick Hammer can be formed when the price closes above the open price with a
long low price. It can be said that long tail bullish candle.

In Hammer the
body of the candle will be very short and the shadow or the tails of the candle
will be very big.

The second
candle in the image of the Pattern shown is the Hammer.

Reversal Patterns in Technical Analysis

 

Candle
stick chart patterns:

Trading in Stock market or in Forex market with technical
analysis will be like a road map for success. Candle stick will form with
prices of the stocks or price of currency pair . Four prices are required for forming of an candle, Open
price, closing price, High price and low price. Continuation of candles will
form a pattern and that patters will give an indication as how the price moves.
We have to recognize and differentiate the candlestick patterns based on
Reversal Patterns Continuation Patterns. Usually two or three Candles are
required to form a pattern even some patterns requires 4 to 5 candles. After formation
of pattern one has to decide to enter in to or exit from the market as per the
pattern. But after completion of confirmation candle. After completion of
pattern one has to wait for confirmation candle.

High Reliability Reversal Patterns

I.                   
Bullish
Reversal

1.      Priceing Patterns:

2.      Morning Star

3.      Morning Doji Star

4.      Bullish Kicker signal

5.      Bullish three white soldiers

6.      Bullish three inside up

7.      Bullish 3 outside up

8.      Bullish Abandoned baby Patterns

9.      Bullish Concealing Baby Swallow

II.                
Bearish
Riversal

1.      Dark cloud cover

2.      Evening star

3.      Evening Doji star

4.      Bearish Kicker Signal

5.      Bearish 3 Black crowes

6.      Bearish Two Crowes

7.      Three Inside Down

8.      Bearish Three outside Down

9.      Bearish Abandoned Baby Pattern.

In addition
to this one have to use indicators or oscillators combination of one or more
signals will be more helpful for trading To effectively utilize technical
indicators, you must first understand that the most essential aspects of these
indicators are their parameters. This is because proper parameters offer you
better entry and exit points. We can consider the technical indicators are more
important than fundamental analysis

Some of
Technical indicators are below:

1.      Support levels

2.      Resistance levels

3.      Moving Averages

4.      Bollinger Bands

5.      Linear Regression lines

6.      Moving Average Convergence and
Divergence

7.      Volume Bars

8.      Stochastic Oscillators

9.      Relative Strength Index

Volume Indicators

The
volume indicator is also a significant index aside from its own price. It is very
beneficial in the stock market because it shows how much stocks have been
traded (both selling and buying) at any given time. As it is systematized in Forex,
you cannot determine the figures as to the amount of money that has been bought
or sold during a particular time. You can determine the figures of the volume
indicator using the movement of the price as your base.

 

This
bar chart uses two different bars, the green, and the red bars. These bars are used
to show whether you have a greater value or a lower value. When you see a green
bar, it shows a greater value than what the bar previously indicated while the
red bar means the current value is lower than the previous value. With the bars
displaying a color green, it means that there are more people participating in
the stock market at that particular time.

 

The
volume indicator can analyze how strong the trend is. The price follows the trend,
whether it is going upwards or downwards. If the volume increases, it shows a strong
trend. However, when the price starts fluctuate while the volume begins to decrease,
then it shows a trend that is getting weaker and will probably stop. What follows
this is a reversal or a rather quiet market. Still, you will need other
indicators to confirm the current situation.

 

Volume
indicators are also used in sorting out the validity of breakouts. When a low
volume centralized market showed a single high bar in the volume indicator, it
can mean that a possible break out is expected at any moment. When it happens,
the volume indicator displays high values, which is considered more accurate.
When the indicator displays a low interest, the breakout is considered not
valid.

 

The
volume confirms the most significant movements in the market. When the traders’
activity becomes higher than usual, these are confirmed by having higher volumes.
Nevertheless, a volume indicator can be considered accurate and reliable if there
is access to the information from the actual turnover in the market.