Darren Winters

Darren Winters of Win Investing Candle Reversal No 4

:

The Piercing Pattern is a bottom reversal. It is a two candle pattern at the end of a declining market. The first day real body is black. The second day is a long white body. The white day opens sharply lower, under the trading range of the previous day. The price comes up to where it closes above the 50% level of the black body.

Darren Winters of Win Investing Candle Reversal No 3:

The Dark Cloud Cover is a two-day bearish pattern found at the end of an upturn or at the top of a congested trading area. The first day of the pattern is a strong white real body. The second day’s price opens higher than any of the previous day’s trading range.

For Darren Winters

Darren Winters of Win Investing Candle Reversal No 2:

The Bearish Engulfing Pattern is directly opposite to the bullish pattern. It is created at the end of an up-trending market. The black real body completely engulfs the previous day’s white body. This shows that the bears are now overwhelming the bulls.

Darren Winters of Win Investing Candle Reversal No 1:

The Bullish Engulfing Pattern is formed at the end of a downtrend. A white body is formed that opens lower and closes higher than the black candle open and close from the previous day. This complete engulfing of the previous day’s body represents overwhelming buying pressure dissipating the selling pressure.

Theory of Bollinger bands is taught by Darren Winters of Win Investing to track volatility and to identify times where reversals are likely to occur. A reversal is simply a turn in direction from the prevailing trend. Thus is a stock is moving upwards a reversal will be an indication that a stock will start moving downwards.

The following posts will include Darren Winter’s explanation on Candle Reversal’s

The following post contains more “Things to Remember” From Darren Winters of Win Investing.

Darren Winters’ “Thing to remember” 3:

Make sure option prices are not too expensive.

Darren Winters’ “Thing to remember” 4:

Expiration should be at least 6 months unless you are selling options.

Darren Winters’ “Thing to remember” 5:

Make sure your decisions well though through. Avoid making adrenaline based decisions.

For Darren Winters

Darren Winter’s Tip 3

When the price trades at ether of the bands when those are far apart and price stalls or forms a candlestick reversal pattern the price is likely to return to the average. This supported by MACD divergence can for a very practical trading signal.

Darren also added “Bollinger bands are a great tool not only for warning of a trending move but they will also help you time trades within the existing trend and even help you generate short term sells and buys within the prevailing trend”

For Darren Winters

Darren Winter’s Tip 2

When a clear trend emerges a pullback to a central line (moving average) is used as indication of a reentry point back into the trend. A reversal pattern must form around the central line and the swing low must be higher than the previous swing low.

For Darren Winters

Darren Winter’s Tip 1
When the market consolidates and trades in a very narrow range the volatility of price will drop and both Bollinger bands will get very close together around the average. This helps in spotting a new trends emerging as the market has exhausted previous momentum and waiting for price to establish a new one. The magnitude of the consolidation is most likely to determine the magnitude of breakout to follow.

For Darren Winters of Win Investing