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Topic
Reversal
24 guides in Finabase Learn
- Abandoned baby candlestick: the rare double-gap reversal How the abandoned baby pattern works, the two price gaps TA-Lib demands, why Finabase never flags it, and the single real case in 29,760 daily bars.
- Belt hold candlestick: opening at the extreme, rules and data The bullish and bearish belt hold explained: the clean-open rule TA-Lib uses, the gap it leaves out, and what 4,514 belt holds actually did next.
- Breakaway candlestick pattern: five candles that close a gap The five-candle breakaway pattern explained: the gap, the drift, the candle that closes back into the gap, TA-Lib’s rules and seven real cases.
- Dark cloud cover: the pattern and its penetration setting How dark cloud cover forms, how TA-Libâs penetration parameter works, why Finabaseâs setting of 10 means it never fires, and what TA-Lib finds at 0.5.
- Divergence: regular and hidden, bullish and bearish, with RSI and MACD How to spot regular and hidden divergence between price and RSI or MACD, real Tesla examples, a small test on seven symbols, and why divergence needs confirmation.
- Double Bottom A bullish reversal pattern of two troughs at about the same price, completed when price rises above the peak between them.
- Double Top A bearish reversal pattern of two peaks at about the same price, completed when price falls below the trough between them.
- Double top and double bottom patterns: rules, targets and examples How to recognize a double top or double bottom, where confirmation comes, how to project the target, and how 111 real cases on US stocks played out.
- Engulfing candlestick pattern: bullish and bearish rules and data How bullish and bearish engulfing patterns form, what TA-Lib’s +80 and −80 scores mean, and how 2,218 real engulfings on large US stocks played out.
- Evening star candlestick: how to spot a three-day top The evening star pattern explained: its three candles, TA-Lib’s exact test, the settings quirk that hides it in Finabase, and how 154 real cases played out.
- Hammer candlestick pattern: meaning, rules and reliability How to identify a hammer candle, the exact rules Finabase’s scanner uses, why it needs confirmation, and what 167 real hammers did next.
- Hanging man candlestick: rules, context and what the data shows What separates a hanging man from a hammer, the exact TA-Lib test Finabase runs, why most never confirm, and what 483 real ones did next.
- Head and shoulders A reversal chart pattern of three peaks, the middle one highest, with a neckline whose break completes the pattern.
- Head and shoulders pattern: neckline, target and reliability How to spot a head and shoulders top or inverse bottom, draw the neckline, project the measured-move target, and what real occurrences on US stocks did next.
- Inverted hammer candlestick: TA-Lib rules and real results How an inverted hammer forms after a decline, the body-gap test TA-Lib requires, why confirmation mattered most here, and 352 real cases.
- Modified hikkake: the stricter two-inside-bar reversal trap How the modified hikkake adds a second inside bar and a close-location test to the hikkake, how TA-Lib scores it, and what 36 real signals did next.
- Morning star candlestick pattern: rules, examples and test results How the three-candle morning star forms, the exact TA-Lib rules, why Finabase’s default setting never flags it, and what 155 real morning stars did next.
- Piercing line pattern: how it forms, TA-Lib rules and track record The piercing line explained: a gap below the prior low that recovers past the midpoint, the stricter test TA-Lib applies, and why 92 real cases disappointed.
- Rising and falling wedge patterns: how to read and trade them How to tell a rising wedge from a falling wedge and from a triangle or channel, where the breakout and target are, and real wedges that broke both ways.
- Three inside up and three inside down: the confirmed harami How the three inside up and three inside down patterns form, TA-Lib’s exact test, two real cases from 2026, and how 467 detections on US stocks performed.
- Three outside up and down: engulfing plus a follow-through day The three outside up and three outside down patterns: how they form, TA-Lib’s size-free test, real 2025 examples, and results from 994 detections.
- Three-line strike: the four-candle pattern and its sign trap How the three-line strike forms, why TA-Lib scores it in the direction of the first three candles, and what 20 real strikes on US large caps did next.
- Triple top and triple bottom: how to trade three tests of a level What a triple top or triple bottom is, why the confirmation level is the lowest valley or highest peak, how to set the target, and real wins and failures.
- Tristar candlestick pattern: three dojis and a turn How bullish and bearish tristars form, why TA-Lib’s doji test can accept a $1 body in a volatile market, and how 44 real tristars on US large caps behaved.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.