Hi, tigers! Let’s start this week’s lessons! Candlesticks Part 2: Two-Candlestick Reversal Patterns"Dark Cloud Cover" & "Piercing Pattern": The Midpoint TestThese patterns rely on the "50% Rule." For a reversal to be valid, the second candle must pierce at least halfway into the body of the first candle.A. Dark Cloud Cover (Bearish Reversal)Appearance: Occurs at a high. A strong green candle is followed by a red candle that opens above the high of the previous day (a gap up) but closes below the midpoint (50%) of the green body.Market Logic: The market opened with optimism (gap up), but sellers stepped in aggressively, erasing more than half of the previous day's gains. This "cloud" casts doubt on the uptrend.B. Piercing Pattern (Bullish Reversal)Appearance: Occurs at a low. A strong r
TA Education: Read the Market, Trade Smarter, Get Rewarded!
This series aims to break down commonly used technical indicators simply and intuitively, helping investors improve their ability to interpret market trends, momentum, and risk. Whether you're a beginner or an experienced trader, you’ll quickly grasp the core logic behind each indicator, avoid common misuses, and strengthen your practical analysis skills. Share your technical analysis insights to win $5 stock vouchers and tiger coins!
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