Candlestick Patterns Provide Excellent Stock Market Trading Tools

When deciding on which stock market trading tools to use for trading your own portfolio – Nothing beats Candlestick Signals! Stock charts displayed in bar chart formats are difficult to interpret and frustrating to investors new to the stock market. Even if you are unfamiliar with reading stock charts, Candlestick Charts provide  clear and easy to identify patterns. Reading about the Japanese Candlestick signals is interesting and it aids in remembering profitable pattern setups. The Candlestick Forum presents stock market trading tools that help investors read stock charts and recognize dependable trading patterns.  These patterns produce predictable results which are easily combined with other technical analysis tools.  Stock market trading tools do not have to be difficult, especially if you begin with Candlestick Charts.

Three Inside Up and Three Inside Down
Three Inside Up and Three Inside Down


Note that after the long candle day that is in the same direction of the trend that the Harami pattern occurs.  The Harami is the first indication that the trend has stopped. The third day confirms that the harami has indicated correctly. The three-day pattern is a modern era confirmation of the Harami pattern.

  1. The Harami pattern is the overriding signal component of this pattern.
  2. The harami body should be the opposite color of the long candle day.
  3. Day three has a close that is higher than the open of day one.(Three Inside Up) Or lower than day one in the bearish indication.(Three Inside Down)

Pattern Psychology

After a trend and the occurrence of a long body day that extends that thread, the harami pattern shows that the trend has stopped. A factor that helps identify the strength of the reversal is how big the harami is compared to the previous day’s body. A body that is relatively large indicates more strength in the opposite direction. Additionally, the magnitude of the strength in day three adds to the potency of the reversal.
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