candle stic pattern
TRANSCRIPT
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Continuation PatternsReversal Patterns
Bullish
Continuation Patterns
Bearish
Continuation Patterns
Bearish Reversal
Patterns
Bullish Reversal
Patterns
1. Rising Three Methods
2. Three Line Strike
1. Falling Three Methods
2. Downside Tasuki
3. Three Line Strike4. Side by Side White
. Lines!. "n #e$k
%. &n #e$k
8. Thrusting
(3)
Weak
Bearish
Reversal
Patterns
(2)
Moderate
Bearish
Reversal
Patterns
(1)
Strong
Bearish
Reversal
Patterns
(3) Weak
Bullish
Reversal
Patterns
(2)
Moderate
Bullish
Reversal
Patterns
(1) Strong
Bullish
Reversal
Patterns
1. 'elt (old
2. (ara)i
1. 'elthold
2. *ra+estone Do,i
1. -bandoned 'aby
2. Dark loud o+er
3. /+ening Do,i Star
4. /+ening Star
1. -bandoned 'aby
2. Morning Do,i Star
1. 'reakaway
2. Do,i Star
3. Dragonly
Do,i
4. /nguling
. (a))er
1. -d+an$e 'lo$k
2. 'reakawayandlesti$k
3. Deliberation
4. Downside Tasuki
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Bullish Reversal Patterns
(1) Strong Bullish Reversal Patterns
1. -bandoned 'aby
2. Morning Do,i Star
3. Three "nside 0
4. Three &utside 0
. Three White Soldiers
(2) Moderate Bullish Reversal Patterns
1. 'reakaway
2. Do,i Star
3. Dragonly Do,i
4. /nguling
. (a))er
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!. Ladder 'otto)
%. Morning Star
. ier$ing Line
5. Three Stars in the South
16. Tristar.
(3) Weak Bullish Reversal Patterns
1. 'elthold
2. *ra+estone Do,i
3. "n+erted (a))er
4. Twee7ers 'otto)
Bearish Reversal Patterns
(1) Strong Bearish Reversal Patterns
1. -bandoned 'aby
2. Dark loud o+er
3. /+ening Do,i Star
4. /+ening Star
. Three "nside Down
!. Three &utside Down
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(2) Moderate Bearish Reversal Pattern
1. -d+an$e 'lo$k
2. 'reakaway andlesti$k
3. Deliberation
4. Downside Tasuki
. Dragonly Do,i
!. /nguling
%. Meeting Lines
. Tri Stars
5. *ra+estone Do,i
16. (anging Man
(3) Weak Bearish Reversal Patterns
1. 'elt (old
2. (ara)i
3. Shooting Star
4. (ara)i ross
. Twee7ers To
Continuation Patterns
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819 'earish ontinuation atterns:
Falling Three Methods
Downside Tasuki
Three Line Strike
Side by Side White Lines
"n #e$k
&n #e$k
Thrusting
829 'ullish ontinuation atterns:Rising Three Methods
Three Line Strike
Candlestick Stock Analysis – Patterns
In our earlier article we talked about introduction to candlestick stock analysis. Now, we will go a bit deeper and understand the basic candlestick patterns which can be seen in
these types of charts used in stock analysis for beginners. Below are the simple types of candlesticks which are being used in this kind of analysis:
1. White candlestick – White candlesticks or hollow candlesticks signal uptrend moement. !hese occur in different lengths" the longer the body, the more significant theprice increase.
#. Black candlestick – Black candlesticks or filled candlesticks signal downtrend moement. !hese occur in different lengths" the longer the body, the more significant theprice decrease.
$. %ong lower shadow – %ong lower shadow gies a bullish signal. !he lower wick must be at least the body&s si'e" the longer the lower wick, the more reliable thesignal.
(. %ong upper shadow – %ong upper shadow gies a bearish signal. !he upper wick must be at least the body&s si'e" the longer the upper wick, the more reliable thesignal.
). *ammer – + hammer shows a bullish pattern during a downtrend. !he hammer has long lower wick and small or no body. haen head hammer shows a bullishpattern during a downtrend - a bearish pattern during an uptrend since it has no upper wick. !he *anging man hammer candlestick shows bearish pattern during anuptrend. It has long lower wick, small or no body" wick has the multiple length of the body.
. Inerted hammer – Inerted hammer signals bottom reersal" howeer confirmation must be obtained from ne/t trade. It may be either a white or black body. haenbottom inerted hammer signals bottom reersal, howeer confirmation must be obtained from ne/t trade. It has no lower wick. hooting star inerted hammer shows abearish pattern during an uptrend. It has small body, long upper wick, small or no lower wick.
0. pinning top white – pinning top white gies a neutral pattern. It gies a normal iew until seen with respect to the other candlestick patterns. pinning top black – imilar to spinning top white pattern and gies neutral pattern but in black candlestick. +gain becomes meaningful when sees in combination with
other candlestick patterns2. 3o4i – 3o4i is a neutral pattern with no body and only shadows, meaningful in combination with other candlestick patterns15. %ong legged do4i – !his is a type of 367I but hae long shadows. It signals a top reersal11. 3ragonfly do4i – +s in a normal 3o4i, there is no body and a 3ragonfly 3o4i signals trend reersal since it has no upper wick and long lower wick.1#. 8raestone do4i – 6pposite to 3ragonfly do4i and signals trend reersal. It has no lower wick and long upper wick1$. 9arubo'u white – 9arubo'u denotes dominant bullish trades and continued bullish trend. It has no upper or no lower wick.
http://stockmarketforbeginnersguide.com/candlestick-stock-analysis-patterns/http://stockmarketforbeginnersguide.com/candlestick-stock-analysis-introduction/http://stockmarketforbeginnersguide.com/candlestick-stock-analysis-introduction/http://stockmarketforbeginnersguide.com/http://stockmarketforbeginnersguide.com/http://stockmarketforbeginnersguide.com/candlestick-stock-analysis-introduction/http://stockmarketforbeginnersguide.com/http://stockmarketforbeginnersguide.com/candlestick-stock-analysis-patterns/
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1(. 9arubo'u black – 9arubo'u black denotes dominant bearish trades and continued bearish trend. It has no upper or no lower wick.
Candlestick Charting I: Basic Patterns
Learn the 11 Basic Candlestick Patterns, and which ones produce highly reliale, tradale indicators. !ou"ll also learn a #ew $apanese
words along the way%
& asolutely lo'e candlestick charting. (hy) *he +ain reasons why candlesticks outper#or+ any other types o# charts are ecause
you are ale to, 1 'isually depict stock data easily, 2 estalish strong price relationships and - catch possile re'ersals uickly.
*he third one has sa'ed +e +any, +any ti+es. Let/s take a look at a asic candle, which +ake up all candlestick charts, and +ake
sure we know where the open, high, low, and close are located0
http://education.wallstreetsurvivor.com/Candlestick-Chartinghttp://education.wallstreetsurvivor.com/Candlestick-Charting
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A green or white candle signies a positi'e up day and a red or lack candle signies a negati'e down day. 3or this article, & will
use 4green5 candles #or positi'e days and 4red5 candles #or negati'e days. Let this sink in e#ore continuing. *he third pattern to
the #ar right is called a do6i, which signals indecision, and one o# the +any asic patterns you will e learning today.
*here are 11 categories o# asic and +a6or candlestick patterns. *hese are the +ost co++on patterns you/ll e seeing as you
practice going through your charts. & will gi'e a description, a real7li#e ea+ple, and indicate 4reliaility5 le'els #or each pattern0
etre+ely high, high, +ediu+, low, etre+ely low. 9ere are the categories0
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Doji
:o6i are days where the open and close are identical or nearly identical. *he candle will look like a cross as a result. *his is the
pri+ary signal #or indecision and a potential re'ersal +ay e underway. (hat/s i+portant to note is that do6i in the +iddle o# a
trend +ark continuations o# that trend, while do6i located at the otto+ o# a trend o'iously +ark re'ersals. (hene'er you see a
do6i, pay special attention to its location within a chart.
*here are three types o# do6i0 gra'estone, dragon;y, and long7legged. A gra'estone do6i si+ply +eans that a stock opened at the
low o# the day, reached a high, ut #ell ack down to close at
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Bullish engulng patterns are #or+ed when a green candle gaps down opens lower and closes +uch higher than the open o# the
pre'ious day/s red candle. you look at the pattern, you can see how the green candle co+pletely 4engul#s5 the red candle. *his
shows that there was intense uying pressure so+eti+e during the day to negate the selling pressure at the open.
Bearish engulng patterns are 6ust the opposite and they are #or+ed when a red candle gaps up opens higher and closes +uch
lower than the open o# the pre'ious day/s green candle. *his shows an i++ediate senti+ent change during the day and cancelled
out the pre'ious day/s gains.
Harami
9ara+i +eans 4pregnant5 in $apanese and the ter+ is deri'ed y oser'ing a s+all candle 4within5 a larger candle. *he long
candle is the 4+o+5 and the s+all candle is the 4ay5. *he second or s+aller candle/s open and close +ust oth e located
within the open7close range o# the rst or long candle. *his pattern is also known as an 4inside day5. A hara+i can signal a
slowdown in the current trend and a possile re'ersal. 9owe'er, the reliaility o# the pattern is low and & reco++end that you wait#or the net day to 4conr+5 a re'ersal.
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Kicker
>ickers are perhaps the +ost i+portant and power#ul re'ersal signals in candlestick charting. *hey represent the +ost dra+atic
and sudden shi#t in senti+ent. >icker candles are +ost co++only co+pared to reakaway gaps. *he longer the candle, the +ore
power#ul the price re'ersal. *hese signals ha'e the aility to co+pletely end a trend and start a new one, all in a single day. *his is
why they are so power#ul and o# course, their reliaility is etre+ely high.
A ullish kicker is #or+ed when the rst candle is red and the second candle is green ut the open and close o# the green candle
eceeds the open7close range o# the pre'ious day/s red candle. *his is ecause the gap up is #orce#ul to the upside. *he earish
kicker is 6ust the opposite where a red candle gaps down so hard, that the open7close range are well elow the open7close range o#
the pre'ious day/s green candle.
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Dark Cloud Cover
*he dark cloud co'er is a earish re'ersal signal. &t consists o# a green and red candle and the red candle +ust gap up open
higher ao'e the green candle. (hat happens is that the ar turns into a red candle and +ust close at least ?@ elow the +id7point o# the green candle. *he dark cloud co'er/s reliaility is +ediu+.
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Piercing
*he piercing pattern is the opposite o# the dark cloud co'er and it is a ullish re'ersal pattern. *his pattern also consists o# a green
and red candle ut the green candle +ust gap down open lower elow the red candle. *his green candle +ust close at least ?@
ao'e the +id7point o# the red candle. *he piercing pattern/s reliaility is +ediu+.
Shooting Star
*he shooting star is a earish re'ersal pattern. &t consists o# a green candle and during the day it was a long candle, ut #or so+e
reason, there was a sell7o that 4sha'ed down5 the long candle y at least 2
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Hammer & Hanging Man
Both patterns are re'ersal patterns. *he 9a++er occurs at the otto+ o# a downtrend and a hanging +an occurs at the top o# an
up trend. (hat happens is that these candles open, sell o during the day ut so+ehow +anage to rally ack close to their open.
*he shadow has to e at least 2
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Morning Star
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*he +orning star is a ullish re'ersal pattern at the end o# a downtrend. *his is a three candle #or+ation with the rst candle eing
red, the second neutral, and the third, green. *he second candle can e anything, ut in +ost cases, it is a do6i. (hat happens here
is that the downtrend is ehausted and there is a lack o# sellers pressuring the stock down. *he second day, eing an indecisi'e
day, eco+es 4+iddle ground5. the ulls win the net day, the green candle co+pletes the +orning star pattern. *he third candle
+ust close at least ?@ ao'e the +id7point o# the red candle.
*he +orning star, and its counterpart, the e'ening star, are two o# the most highly reliable reversal patterns in candlestick
charting. 3ro+ +y own eperience, the #ailure rates are etre+ely low and the +orning star and e'ening star are two o# +y +ost
sought7a#ter patterns.
Evening Star
*he e'ening star is the co+plete opposite o# the +orning star and it is a earish re'ersal pattern. At the end o# an up trend, the
stock ehausts itsel# and +ay #or+ a do6i top, signaling a stale+ate etween the ulls and ears. *his is an indication that the
+a6ority o# traders ha'e ought the stock i# there is no price progress +ade. *he third candle, a red one, indicates panic7dri'en
selling as a result o# a lack o# uyers. *he downtrend usually continues #or uite so+e ti+e. Dpposite o# the +orning star, the third
red candle +ust close at least ?@ elow the +id7point o# the green candle.
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So now you know the asic and co++on candlestick patterns that occur. !ou/ll e ready #or the se'eral doEen ad'anced candlestick
patterns that will co+plete your understanding o# the +a6or continuation, re'ersal, secondary and tertiary signals. & won/t throw
e'erything at you all at once, ut they will e di'ided into separate articles and they will e spaced out. & rst want you to learn and
get accli+ated to these 11 patterns e#ore we +o'e on. *he est way to do this is to set aside so+e ti+e #or your trading
education and look at se'eral charts and identi#y so+e patterns. you need help, you can always lea'e +e a +essage on +y (all.
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