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First is a large white body candlestick followed by a Doji that gaps above the white body. The third candlestick is a black body that closes well into the white body. When it appears at the top it is considered a reversal signal. It signals a more bearish trend than the evening star pattern because of the Doji that has appeared between the two ...
The morning Doji star is a three-candlestick pattern that works in a strong downtrend. If, after a long bearish candle, there is a gap down and a formation of the Doji candlestick, it's a signal of possible reversal up. In order to confirm this, the third candle should be bullish and open with a gap up covering the previous gap down.
Another difference between the head and shoulders top and bottom is that the top formations are completed in a few weeks, whereas a major bottom (left, right shoulder or the head) usually takes longer, and as observed, may be prolonged for a period of several months or sometimes even more than a year. [4]
It can occur at the top as well as at the bottom. The gaps at either end occur at almost the same price level. It has compact trading activity that is separated from the subsequent move, which is in the opposite direction. It is an extremely good indicator of a reversal of a primary or intermediate trend.
A spinning top, or simply a top, is a toy with a squat body and a sharp point at the bottom, designed to be spun on its vertical axis, balancing on the tip due to the gyroscopic effect. Once set in motion, a top will usually wobble for a few seconds, spin upright for a while, then start to wobble again with increasing amplitude as it loses ...
Bottom line. Whether stock prices rise in a bull market or fall in a bear market, the same investing basics hold true. Use dollar-cost averaging to your advantage; consider buying and holding low ...
A bear market generally occurs when prices have declined by at least 20 percent from a recent high. Bear markets have historically not lasted as long as bull markets in the stock market.
For Dummies is an extensive series of instructional reference books which are intended to present non-intimidating guides for readers new to the various topics covered. The series has been a worldwide success with editions in numerous languages.