Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
9Activity
0 of .
Results for:
No results containing your search query
P. 1
Trading Candles

Trading Candles

Ratings: (0)|Views: 832|Likes:
Published by nesher9
Candlestick charts are one of the two most popular trading charts, because of the range of trading information that they represent, and their ease of reading and interpretation.

Candlestick charts consist of a wide vertical line, and a narrow vertical line. Each candlestick includes the open, high, low, and close, of the timeframe, and also shows the direction (upward or downward), and the range of the timeframe.
Ebook presents the major patterns and their brief explanation.
Candlestick charts are one of the two most popular trading charts, because of the range of trading information that they represent, and their ease of reading and interpretation.

Candlestick charts consist of a wide vertical line, and a narrow vertical line. Each candlestick includes the open, high, low, and close, of the timeframe, and also shows the direction (upward or downward), and the range of the timeframe.
Ebook presents the major patterns and their brief explanation.

More info:

Published by: nesher9 on Jul 18, 2009
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

05/25/2012

pdf

text

original

 
Bearish Candlesticks
 Abandoned Baby Bearish
Like most of the three day star patterns, the scenarios are similar. The primary difference is thatthe star (second day) can reflect greater deterioration in the prior trend, depending on whether itgaps, is Doji, and so on.
 Advance Block Bearish
The Advance Block pattern is a derivative of the Three White Soldiers. However, it must occur inan uptrend, whereas the Three White Soldiers pattern must occur in a downtrend. Unlike theThree White Soldiers, the second and third days of the Advance Block show weakness.
Belt Hold Bearish
The market is trending when a significant gap in the direction of trend occurs on the open. Fromthat point, the market never looks back: all further price action that day is the opposite of theprevious trend. This causes much concern and many positions will be covered or sold, which willhelp accentuate the reversal.
 
 Breakaway Bearish
It is important to realize what is being accomplished here. The trend has accelerated with a biggap and then starts to fizzle, but it still moves in the same direction. The slow deterioration of thetrend is quite evident from this pattern. Finally, a burst in the opposite direction completelyrecovers the previous three days' price action. What causes the reversal implication is that thegap has not been filled. A short-term reversal has taken place.
Dark Cloud Cover Bearish
The market is an uptrend. Typical in an uptrend, a long white candlestick is formed. The next daythe market gaps higher on the opening, however, that is all that is remaining to the uptrend. Theday after, the market drops to close well into the body of the white day, in fact, below itsmidpoint. Anyone who was bullish would certainly have to rethink their strategy with this type of action. Like the Piercing Line, a significant reversal of trend has occurred.
 
 Deliberation Bearish
This pattern exhibits a weakness similar to the Advance Block pattern in that it gets weak in ashort period of time. The difference is that the weakness occurs all at once on the third day. TheDeliberation pattern occurs after a sustained upward move and shows that trends cannot lastforever. As with the Advance Block, defining the deterioration of the trend can be difficult.
Downside Gap Three Methods Bearish
The market is moving strongly downward. This move is extended further by another day thatgaps even more in the direction of the trend. The third day opens well into the body of thesecond day, then completely fills the gap. This gap-closing move should be looked upon assupporting for the current uptrend. Gaps normally provide excellent support and/or resistancepoints when considered after a reasonable period of time. Because this gap is filled within oneday, some other considerations should be made. If this is the first gap of a move, then thereaction (third day) can be considered as profit taking.

Activity (9)

You've already reviewed this. Edit your review.
1 thousand reads
1 hundred reads
damneet9832642 liked this
Shibu Cp liked this
burne35 liked this
team56 liked this
team56 liked this
uuuu131 liked this
Shibu Cp liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->