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...]
Candlestick Doji pattern
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...]
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...]