Candlestick patterns are made up of one or more candlesticks and these can be blended together to form one candlestick. This blended candlestick captures the essence of the pattern and can be formed using the following: • The open of first candlestick • The close of the last candlestick • The high and low of the pattern Blending Candles (Bullish Engulfing + … [Read more...]
Archives for 18/10/2009
Inverted Hammer and Shooting Star
The Inverted Hammer and Shooting Star look exactly alike, but have different implications based on previous price action. Both candlesticks have small real bodies (black or white), long upper shadows and small or nonexistent lower shadows. These candlesticks mark potential trend reversals, but require confirmation before action. The Shooting Star is a bearish reversal … [Read more...]
Candlestick Positioning
Candlestick Positioning Below is mentioned some candlesticks positions in detail: Star Position A candlestick that gaps away from the previous candlestick is said to be in star position. The first candlestick usually has a large real body, but not always, and the second candlestick in star position has a small real body. Depending on the previous candlestick, the star … [Read more...]
Bulls v/s Bears
A candlestick depicts the battle between Bulls (buyers) and Bears (sellers) over a given period of time. The bottom (intra-session low) of the candlestick represents a touchdown for the Bears and the top (intra-session high) a touchdown for the Bulls. The closer the close is to the high, the closer the Bulls are to a touchdown. The closer the close is to the low, the closer the … [Read more...]
Doji and Trend
Doji and Trend The relevance of a doji depends on the preceding trend in the market . After an advance, or long white candlestick, a doji signals that the buying pressure is starting to weaken. After a decline, or long black candlestick, a doji signals that selling pressure is starting to diminish. Doji indicates that the forces of supply and demand are becoming more evenly … [Read more...]