The Kelly Strategy, developed by John Kelly at Bell Laboratories, provides an optimal strategy for capital allocation in investment and gambling. It aims to maximize the logarithm of wealth over time, ensuring optimal growth rate while managing downside risk. The Kelly Criterion finds applications in investment management, portfolio optimization methods, and sports betting bankroll...
The Downside Tasuki Gap candlestick pattern is a bearish continuation pattern that suggests an existing bearish trend is likely to persist after a brief pause. Unlike reversal patterns that indicate trend exhaustion, the Downside Tasuki Gap signals that sellers remain in control, even as the price briefly pulls back. This pattern consists of three candlesticks and appears when the second candle...
The Upside Tasuki Gap candlestick pattern is a bullish candlestick continuation pattern that suggests an existing bullish trend is likely to continue after a brief pause. Unlike reversal patterns that indicate trend exhaustion, the Upside Tasuki Gap signals that buyers remain in control, even as the price briefly pulls back. This candlestick formation consists of three candlesticks and appears...
The Mat Hold candlestick pattern is a continuation pattern that signals a brief pause in the trend before the momentum resumes in the same direction. Unlike many candlesticks patterns that indicate potential reversals, the Mat Hold pattern suggests that the dominant trend remains intact despite a temporary pullback. This pattern can appear in both bullish and bearish trends, but traders...
The Upside Gap Two Crows candlestick pattern is a bearish reversal candlestick pattern that forms in an uptrend and signals a potential shift to the downside. It consists of three candlesticks: a strong bullish candle, followed by two smaller bearish candles that gap up but fail to continue the rally. Traders interpret this as a warning that buyers are losing control and sellers are stepping in....
The Three Inside Down candlestick pattern is a bearish candlestick reversal pattern that signals a potential shift from bullish to bearish. Traders watch for this pattern at the top of an uptrend, seeking confirmation that the bulls are losing control and sellers are stepping in. This pattern consists of three candlesticks: a large bullish candlestick, followed by a second candlestick that is...
The Three Inside Up triple candlestick pattern is a reliable bullish candlestick reversal formation that signals a shift from a downtrend to an uptrend. Traders look for this pattern of three when trying to spot potential buying opportunities at the end of a decline. This pattern is formed by three candlesticks, where the first is a bearish candlestick, the second is a smaller bullish...
The Bearish Kicker candlestick pattern is one of the strongest bearish reversal patterns in technical analysis. It suggests an immediate shift in investor sentiment, where sellers take full control after a period of bullish momentum. This candlestick formation is rare, but when it appears, it often leads to a sharp reversal in price. If you're looking for a candlestick pattern that predicts...
The Bullish Kicker candlestick pattern is one of the strongest bullish candlestick reversal signals traders watch for in technical indicators. It suggests a dramatic shift in market sentiment, where buyers completely take control after a period of bearish pressure. This candlestick chart pattern is rare but highly significant when it appears. If you’re looking for a chart pattern that shows...
When a bearish trend reversal seems relentless, traders look for signs of a shift. The Bullish Abandoned Baby candlestick pattern is one such signal that suggests a potential transition from a bearish trend to a bullish trend. Recognizing this reversal candlestick pattern early can help traders anticipate price rebounds and position themselves accordingly. This guide explains how the Bullish...
Market trends don’t always move in a straight line. Sometimes, a downtrend pauses before continuing lower. The pattern of falling three methods signals a brief pullback before the selling pressure resumes. This candlestick pattern is formed when the first candlestick in the pattern is a long bearish candlestick, followed by three short bullish candlesticks, and then a final bearish...
Momentum in the market doesn’t always move in a straight line. Sometimes, an uptrend takes a break before continuing its climb. The Rising Three Methods candlestick pattern signals a temporary pause in a bullish trend before the price resumes moving higher. Understanding this pattern can help traders recognize when a pullback is just a pause rather than a reversal. This guide explains how the...