Candlestick patterns
Introduction to candlestick patterns
One of the best and most popular ways to present financial price data is candlestick patterns. The great thing about candlestick charts is that they are a quick and easy way to see the market and get an overview of the price data before a trade is initiated. Whether you are trading stocks, currencies or commodities, once you have mastered the art of correctly analyzing chart patterns, you can easily assess the strength or weakness of market trends. Candlestick Analysis for Professional Traders is designed to allow you to master the art of reading and analyzing candlestick patterns.
Candlestick Chart
1 Open: The open is the first price traded and is indicated by the upper or lower body of the candle.
2 High: The highest is the highest price traded during the set period for the candle. The highest price can be the open, close, or high in the time span of the candle. If the opening price was the highest price, there is no upper shadow.
3 Low: Low is the lowest price traded during the candle and is indicated by the lower shadow level that is below the body (called the lower shadow).
Types of Candles Sticks:
Bullish Sinking: The bullish sinking pattern indicates a possible reversal in investor sentiment and suggests that the stock has reached its lowest value over a period of time. Therefore, the stock could experience a bullish or bullish movement in the near future.
Gobble Bearish: A bearish gobble pattern occurs on a security's candlestick chart when a large black candle completely engulfs the small white candle from the previous period. This pattern generally occurs during an uptrend and is meant to signal the start of a downtrend in the security.
Dark Cloud Cover: Dark Cloud Cover is a bearish reversal candle pattern in which a descending candle opens above the close of the previous bullish candle and then closes below the midpoint of the bullish candle.
Rising Sun: Rising Sun is a bullish candle pattern in which a bullish candle opens above the close of the previous bearish candle and then closes above the midpoint of the bearish candle.
Harami: A harami is a candlestick chart indicator that suggests that a downtrend or an uptrend may end. Some investors may take a harami as a good sign that they should go long or short on an asset. Read More...
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