Candle stick patterns - There There are are many many kinds kinds of candl candle e stick sticks. s. With With the the tren trend, d, reversal, high reliability, low reliability etc. - The candle candle stick stick patt pattern ernss becom become e with with the the last last years years to preferred chart by many traders, as they represent amazingly the price action. - As long longer er the the tim timefr eframe ame,, as reli reliabl able e the the patte pattern rn is. is. - There There are are som some e very very comm common on patt pattern erns, s, and and there there are some very rare that makes them special "event" on the market - Maste Mastering ring the candle candle stic stick k patter patterns ns with with any any tradi trading ng method can improve the trading amazingly.
!llish candle
earish candle
Reversal patterns: •
The information is taken from the site www.#apanesecandlesticks.com
A candlestick with a long lower shadow and small real body. The shadow sho!ld be at least twice the length of the real body, and there sho!ld be no or very little !pper shadow. The body may be either black or white, b!t the key is that this candlestick m!st occ!r within the conte$t of a downtrend to be considered a hammer. The market may be "hammering" o!t a bottom.
%dentical in appearance to the hammer, b!t appears within the conte$t of an !ptrend.
!llish -- when a white, real body totally covers, "eng!lfs" the prior day&s real body. The market sho!ld be in a definable trend, not chopping aro!nd sideways. The shadows of the prior candlestick do not need to be eng!lfed.
earish -- when a black, real body totally covers, "eng!lfs" the prior day&s real body. The market sho!ld be in a definable trend, not chopping aro!nd sideways. The shadows of the prior candlestick do not need to be eng!lfed.
'ark-(lo!d (over )bearish*-- a top reversal formation where the first day of the pattern consists of a strong white, real body. The second day&s price opens above the top of the !pper shadow of the prior candlestick, b!t the close is at or near the low of the day, and well into the prior white, real body.
These candlestick formations consist of a small real body those gaps away from the real body preceding it. The real body of the star sho!ld not overlap the prior real body. The color of the star
is not too important, and they can occ!r at either tops or bottoms. +tars are the e!ivalent of gaps on standard bar charts. Stars make up part of four separate reversal patterns
-Morning +tar -vening +tar -'o#i +tar
Morning +tar-- this is a b!llish bottom reversal pattern. The formation is comprised of candlesticks. The first candlestick is a tall black real body followed by the second, a small real body, which gaps )opens*, lower )a star pattern*. The third candlestick is a white real body that moves well into the first period&s black real body. This is similar to an island pattern on standard bar charts. vening +tar --- a bearish top reversal pattern and co!nterpart to the Morning +tar. Three candlesticks compose the evening star, the first being long and white. The second forms a star, followed by the third, which has a black real body that moves sharply into the first white candlestick.
'o#i +tars -- When a do#i gaps above a real body in an !ptrend, or gaps !nder a real body in a falling market, that partic!lar do#i is called a do#i star. Two pop!lar do#i stars are the evening star and the morning star.
vening 'o#i +tar -- a do#i star in an !ptrend followed by a long, black real body that closed well into the prior white real body. %f the candlestick after the do#i star is white and gapped higher, the bearishness of the do#i is invalidated. Morning 'o#i +tar -- a do#i star in a downtrend followed by a long, white real body that closes well into the prior black real body. %f the candlestick after the do#i star is black and gapped lower, the b!llishness of the do#i is invalidated.
+hooting +tar -- a small real body near the lower end of the trading range, with a long !pper shadow. The color of the body is not critical. /ot !s!ally considered a ma#or reversal sign, only a warning.
%nverted 0ammer-- not really a star, b!t does look like a shooting star. When occ!rring within a downtrend, may be a t!rning signal. ody color is not critical. •
The information is taken from the site www.#apanesecandlesticks.com
Special patterns:
'o!ble picks1 Twin picks
'o!ble bottoms1 Twin bottoms
Weak b!llish1bearish morning1evening star
Trend hammers after corrections
(lear hammers on
'o!ble hammers
$amples time
2ecognize the patterns
0ope yo!&ve en#oyed. 3ladimir 2ibakov 4 (andle stick patterns webinar.
