Doji are one of the important candlesticks that provide information on their own and can be seen in number of important patterns . virtual equality of security’s open and close forms doji. The length of the upper and lower shadows can vary and resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns. Any bullish or bearish bias … [Read more...]
Archives for 18/10/2009
Candlestick Long v/s short shadows
The valuable information on trading sessions can be get through upper and lower shadows of candlesticks . Upper shadows represent the session high and lower shadows the session low. Candlesticks with short shadows indicate that most of the trading action was confined near the open and close. Candlestick with long shadows show that traded extended well past the open and … [Read more...]
Candlestick Long v/s short body
In General , the longer the body is, the more intense will be pressure on buying and selling and in contradiction to it ,short candlesticks indicates little price movement and represent consolidation. Long white candlesticks show strong buying pressure. The longer the white candlestick is, the further the close is above the open indicateing that prices advanced significantly … [Read more...]
Candlestick Formation
Candlesticks formation has some normas and requirements , which needs to be followed to get the best and desired results. To create a candlestick chart, you must have a data set that contains open, high, low and close values for each time period you want to display. The hollow or filled portion of the candlestick is called "the body" (also referred to as "the real body"). The … [Read more...]
Introduction to Candlesticks
History In 17th century for the very first time Japanese began to use technical analysis to trade in stocks . In 1900 a new US version of technical analysis was initiated by Charles Dow which was somehow different from the early version , but many of the guiding principles were very similar: • The "what" (price action) is more important than the "why" (news, earnings, … [Read more...]