Intraday bias in USD/CAD stays on the upside for the moment. The current rise from 1.2401 should target the 1.3022 Fibonacci level next. A decisive break there will carry larger bullish implications. In any case, the outlook will stay cautiously bullish as long as 1.2717 support is intact, in case of another retreat.

In the bigger picture, the focus stays on 38.2% retracement of 1.4667 (2020 high) to 1.2005 (2021 low) at 1.3022. A sustained break there should confirm that the downtrend from 1.4667 has been completed after defending 1.2061 long-term cluster support. A further rise would then be seen towards 61.8% retracement at 1.3650. However, rejection by 1.3022 will maintain medium-term bearishness. A break of 1.2005 will resume the downtrend from 1.4667 and that carries larger bearish implications too.

The post USD/CAD Daily Analysis 03-MAY-2022 appeared first on Forex Broker Reviews, Forex Education Website & Daily Analysis.

Three Inside Down

Three Inside Down is the opposite of the Three Inside Up pattern as it indicates a bearish reversal. The pattern is comprised of three candlesticks. The first candlestick in this pattern is bullish and has a long real body that shows the bulls are in control. The second candlestick in the pattern has a small real body and it remains contained within the real body of the first candlestick. The third candlestick that confirms the pattern is bearish and has a long real body and it closes significantly lower than the low of the first candlestick. A general rule of thumb is that the deeper the third candlestick closes the stronger the pattern is.

To further understand the pattern let’s take a look at the following chart of GBP/JPY. You can see the pair was moving higher until a Three Inside Down pattern appeared around 139.50. The first candlestick is bullish which is followed by a bearish candlestick. The third candlestick in the pattern is also bearish and has a long real body. The third candlestick closed way below the closing of the first candlestick and confirmed the bearish reversal. Following the reversal signal, the pair started to move lower towards 133.00

• Previous Lesson

• Next Lesson

The post Three Inside Down appeared first on Forex Broker Reviews, Forex Education Website & Daily Analysis.

Three Inside Up

Three Inside Up is a bullish reversal pattern. The pattern is made up of three candlesticks of which the first candlestick is bullish and has a long real body. The second candlestick in this pattern is a small bullish candlestick that remains contained within the real body of the first candlestick. The third and final candlestick in this pattern is bearish and has a big real body that closes above the first candlestick. 

The pattern is considered stronger if the third candlestick closes significantly higher than the high of the first candlestick. The third candlestick completes the pattern and indicates a possible shift in the ongoing downtrend.

Take a look at the below USD/CAD chart in which the Three Inside Up pattern has appeared at the bottom. The bears were in control for several sessions and had taken the pair considerably lower. However, near 1.2800 a Three Inside Up pattern appeared. The first candlestick in the pattern is bearish and it is followed by a small bullish candlestick. The third candlestick is also bullish but it is completely covering the first bearish candlestick. The third candlestick confirmed the bullish reversal and the pair started to move towards 1.36000.

• Previous Lesson

• Next Lesson

The post Three Inside Up Pattern appeared first on Forex Broker Reviews, Forex Education Website & Daily Analysis.

Three White Soldiers Pattern

The Three White Soldiers Pattern is a continuation pattern and it is comprised of three candlesticks. The pattern is sometimes also called Three White Soldiers or Three Advancing White Soldiers. Perhaps these names come from the black and white charts. The pattern is comprised of three bullish candlesticks in a row. The consecutive bullish candlesticks show a steady rise in the price and the continuation of the ongoing uptrend. The pattern is considered stronger when it appears in a consolidation phase.

Each candlestick in this pattern should appear within the body of the previous candle. The closing of the candlesticks should also be near or at the high meaning that the upper wick should either be small or not present at all. Finally, the size of the candlesticks should remain relative which means a long candlestick needs to be followed by an equally long candlestick.

To completely understand the Three White Soldiers pattern let’s take a look at the following NZD/USD chart. You can see the pair was trending up but then around 0.6100 it entered a consolidation phase. Now towards the end of the consolidation phase, a Three White Soldiers pattern emerged. The pattern has three bullish candlesticks and all three of them have closed above each other. The pattern indicated the continuation of the uptrend and the pair soon moved higher towards 0.6550. 

• Previous Lesson

• Next Lesson

The post Three Soldiers Pattern appeared first on Forex Broker Reviews, Forex Education Website & Daily Analysis.

Evening Star Pattern

The Evening Star pattern is also made up of three candlesticks. This pattern is the opposite of the Morning Star because it indicates a bearish reversal. Just like Morning Star, the pattern gets its name from the middle candlestick that looks like a star in the west. 

The first candlestick in this pattern is bullish and has a big real body. The first candlestick indicates that the bulls are in control until this moment. The second candlestick has a small real body that opens higher than the closing of the first candlestick. Basically, the gap opening of the second candlestick gives a warning of a possible top. The third candlestick in this pattern is bearish and has a long real body that penetrates through the body of the first bullish candlestick. 

The third candlestick completes the pattern and indicates that the bulls might have lost control and the trend may reverse anytime.

Take an example of the following EUR/JPY chart to understand how an Evening Star pattern can be useful for spotting a bearish reversal. The pair was trending up when an Evening Star pattern appeared near 137.50. The first candlestick in the pattern is bullish and shows the control of bulls. The second candlestick slightly gaps higher from the first candlestick. The third candlestick is bearish and its real body completely covers the first bullish candlestick. Following the appearance of the Morning Star pattern, the uptrend reversed and the pair moved significantly lower.

• Previous Lesson

• Next Lesson

The post Evening Star Pattern appeared first on Forex Broker Reviews, Forex Education Website & Daily Analysis.

Morning Star Pattern

Morning star pattern is a well-known and widely anticipated bullish reversal pattern that is made up of three candlesticks. In this pattern, the first candlestick is bearish and has a long body. The second candlestick in this pattern opens lower than the closing of the first candlestick. 

The color of the second candlestick is not important. The third candlestick in this pattern is finally bullish and its big real body penetrates deep into the real bodies of the first two candlesticks. The pattern gets its name from the second candlestick the looks like a star in between the two candlesticks.

To understand how effective the Morning Star pattern is let’s take a look at the below chart of Citigroup (C). You can see that the stock had been in a strong downtrend until at the bottom a Morning Star pattern appeared. The first candlestick in the pattern is a bearish candlestick that shows the sellers are still in control. The second candlestick opens lower than the previous closing. 

Finally, the third candlestick is bullish and has a big real body that penetrates deep into the body of the first candlestick. The third candlestick confirmed the the pattern and following the signal the stock price started to gradually recover towards $70.

• Previous Lesson

• Next Lesson

The post Morning Star Pattern appeared first on Forex Broker Reviews, Forex Education Website & Daily Analysis.

Three Black Crows Pattern

Three Black Crows is another bearish reversal pattern that is comprised of three candlesticks. The pattern perhaps gets its name from the black and white charts. In this pattern, all three candlesticks are bearish and they are formed in a way that it looks three crows are perched on a tree branch.

The opening of each candlestick remains within the body of the preceding candlesticks. The closing of each candlestick also remains near the low. Such a candlestick pattern formation indicates that each session is having a lower closing than the previous session therefore the ongoing upward trend might reverse.

The following chart of EUR/CAD is a classic example of how a Three Black Crows pattern indicates a bearish reversal. The pair was moving significantly higher until around 1.15900 the Three Black Crow pattern emerged. You can see that the second and third candlesticks have their openings within the body of the previous candlestick thus confirming the Three Black Crows pattern. Following the pattern, the pair started to move lower towards 1.15400.

• Previous Lesson

• Next Lesson

The post Three Black Crows Pattern appeared first on Forex Broker Reviews, Forex Education Website & Daily Analysis.

Two Black Crows Upside Down Pattern

Two Back Crows Upside Down Pattern is comprised of three candlesticks and it’s a bearish reversal pattern. The first candlestick in this pattern is bullish while the two remaining candlesticks are bearish. This distinguishing thing in this pattern is that the second candlestick opens higher than the closing of the first candlestick and its closing is also higher than the opening of the first candlestick. Finally, the third candlestick also gaps higher from the closing of the second candlestick but it closes below the second.

The second and the third candlesticks in this pattern symbolize a crow sitting up and looking down. The rationale behind this pattern is that we have a higher closing in the first session and then in the second session, the candlestick opens higher but closes at or near the low. The second candlestick is not completely bad but it is the third candlestick that changes the outlook of the market. Because despite opening higher than the previous two candlesticks it closes deep in the red zone.

Take a look at the following chart of Facebook, the share was gradually rising until a Two Crows Upside Down Pattern emerged near $154. The first candlestick in the pattern is bullish. The second candlestick opens higher than the closing of the first candlestick but it closes lower and turns out to be a bearish candlestick. The third candlestick once again opens higher than the closing of the two previous candlesticks. The third candlestick then closes below the closing of two previous candlesticks and confirmed the pattern. Following the reversal signal, the share started to drop towards $144.

• Previous Lesson

• Next Lesson

The post Two Black Crows Upside Down Pattern appeared first on Forex Broker Reviews, Forex Education Website & Daily Analysis.

Harami Patterns

Harami Patterns are the reversal patterns that frequently appear in a trending market. The patterns are comprised of two candlesticks. The first candlestick in this pattern has a large real body. The second candlestick has a small real body and it remains contained within the real body of the first candlestick.

There are mainly three types of Harami Patterns which are Bullish Harami Pattern, Bearish Harami Pattern, and, Harami Crosses. So let’s explore these patterns one by one.

Bullish Harami Pattern

As the name says the Bullish Harami is a bullish reversal pattern meaning that the falling price may stop and change its direction. The pattern is made up of two candlesticks the first candlestick is bearish and has a big real body. The second candlestick can be of any color but it remains small enough to be contained within the body of the first candlestick.

Let’s look at the Microsoft stock chart below. The price of the stock was falling until a Bullish Harami Pattern appeared at the bottom. The first candlestick in the pattern has a large red real body while the second candlestick is small and its opening and closing are contained within the body of the first candlestick. The pattern indicated a bullish reversal and soon after the stock price started to recover.

Bearish Harami Pattern

Bearish Harami is exactly the opposite of the Bullish Harami pattern as it indicates a bearish reversal. The first candlestick in this pattern is bullish and has a large real body. The second candlestick in the pattern has a small real body that remains contained within the body of the first candlestick. The Bearish Harami Pattern indicates that bulls are losing control and the uptrend is likely to reverse. 

To further understand the Bearish Harami Pattern, let’s take an example of the Citigroup chart below. The stock was recovering from an earlier drop when a Bearish Harami Pattern emerged around $58.50. The first candlestick in the pattern is bullish and it has a large real body. The second candlestick is small and is contained within the body of the first candlestick. Following the pattern, the recovery stopped and the stock once again started to move lower.

 

Harami Crosses

Harami Crosses are similar to other Harami patterns as they also indicate a possible trend reversal. These patterns can appear in both the up-trending and down-trending markets. A Harami cross Pattern that indicates a bearish reversal is called a Bearish Harami Cross while a Harami Cross that indicates a bullish reversal is called a Bullish Harami Cross.

Harami crosses are like other Harami Patterns, the only difference is that the second candlestick in Harami crosses is a Doji candlestick. The color of the second candlestick (Doji) is not important.

The following Microsoft chart is an excellent example of a Bullish Harami Cross. The stock price had been falling from $192 and after a significant drop to $130 a Bullish Harami Cross emerged. The first candlestick in the pattern has a large real body while the second candlestick is a Doji which confirmed the pattern and signaled a bullish reversal. Following the bullish signal, the stock made a significant recovery towards $200.

The following chart of the American Express Company shows the significance of the Bearish Harami Cross Pattern. The stock had been rising from $45 with some small correction. However, after rising to $54, a Bearish Harami Cross emerged. The first candlestick in the pattern is bullish and has a large real body. The second candlestick in the pattern is a Doji that is confirming the pattern. Following the bearish indication, the stock price started to fall and found some support only around $42.

• Previous Lesson

• Next Lesson

The post Harami Patterns appeared first on Forex Broker Reviews, Forex Education Website & Daily Analysis.

Tweezer Tops and Bottoms

Tweezer Tops and Bottoms are reversal patterns. The patterns are easy to spot and provide valuable information on the ongoing trend. The patterns consist of two candles that have either matching lows or matching highs which gives them a tweezer-like shape.

Tweezer Tops

Tweezer tops pattern consists of two candlesticks and indicates a bearish reversal. The first candlestick in the patterns is bullish as it closes in the direction of the ongoing uptrend. The second candlestick in the pattern is bearish and the size of its real body is large enough to match the high of the previous candlestick. The matching highs give the pattern a tweezer-like shape. The pattern is considered further strong if the second candlestick is a Doji or a shooting star.

On the following USD/CHF chart, you can see that the pair was recovering from an earlier decline. However, on its way to recovery, a Tweezer Top pattern emerged near 0.9350. The first candlestick in the pattern is bullish and has a large real body while the second candlestick is bearish and the highs of both candlesticks are matching. The pattern signaled a reversal and the pair once again started to fall.

Tweezer Bottoms

Tweezer Bottoms is the opposite of the Tweezer Tops as it indicates a bullish reversal. The pattern is comprised of two candlesticks in which the first candlestick is bearish and has a large real body. The second candlestick in the pattern can have any color, however, the lows of both the candlesticks should match. The pattern is considered further strong if the second candlestick turns out to be a Doji or a Hammer.

Take a look at the following NZD/USD chart on which the pair is trending lower from 0.7160. After falling nearly 200 pips a Tweezer Bottoms pattern emerged around 0.6850. The first candlestick in the pattern is bearish and has a big real body. The second candlestick in the pattern is bullish and both the candlesticks have matching lows which complete the pattern and a bullish reversal is indicated. Soon in the next session, the pair starts to recover and gradually moves towards 0.7200.

Note: Tweezer Tops and bottoms are not believed to be strong reversal patterns. However, if these patterns appear after a long move, and the second candlestick in the pattern turns out to be a Doji, Hammer, or a shooting star the pattern is then considered stronger. 

• Previous Lesson

• Next Lesson

The post Tweezer Tops and Bottoms appeared first on Forex Broker Reviews, Forex Education Website & Daily Analysis.