Candlestick Charts Provide Profitable Swing Trades

Candlestick Charts Provide Profitable Swing Trades

Swing Trading, a relatively new trading technique. The advent of computers over the past seven to ten years has opened the opportunity for investors to trade stocks and other investments from their home or office. The vast improvement in charting services on the Internet now provides a method for individuals to take advantage of the quick fluctuations in stock prices. Swing trading provides investors a huge opportunity to make profits. As the market sentiments evolve, long term investing becomes less of a dominant form of investing. Swing trading has many advantages over long term investing, especially when implementing with a timing technique such as candlestick trading. Candlestick analysis has "common sense" built into its signals. Understanding the investor sentiment prepares the candlestick investor to maximize profits in short term swing trading. To get into a trade at the optimal point, anticipating when a trend is about to reverse, is crucial. Understanding how the common investor thinks and reacts permits fast profits to be made by swing trading. When most trends reverse, they do so with vigor. The initial day or two of a trend reversal can produce magnificent profits. Swing trading is centered upon taking advantage of that initial move. If the trader has the tools to find and exploit these moves, swing trading becomes a profitable and comfortable form of extracting profits from the market. Our contention is that the candlestick signals ARE the tools needed. Swing trading requires the alignment and concentration of events to maximize profits. Long-term investing does not require the stringent perusal of profit parameters. How often have you heard somebody rationalize about a setback in their position, "Oh well, I’m in it for the long term." This statement is often uttered instead of taking a progressive
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Candlestick Charts Provide Profitable Swing Trades

stance towards one's investment goals. Swing trading represents the exact opposite. An investor trying to maximize profits from a two to ten day holding period has to have analyzed all elements. When swing trading, the establishment of a trade has to be exacting in its purpose, making a profit NOW in that trade. The innate characteristics built into candlestick signals produce the parameters that make swing trading successful. The recognition of a reversal in a trend can be visually depicted in the signals. For the aggressive swing trader, knowing how the signals are formed can produce trades that pinpoint the exact point in which to enter a trade. Additionally, the same indications that get the candlestick swing trader into a trade will alert the trader when it is time to get out. As seen in the following chart, notice the Doji signals at each turn. Knowing what to do after each signal creates the format for profitable swing trading. Knowing the simple rules about what to do once observing a Doji has the candlestick swing trader in and out of trades at the optimal points.

Amiruddin, S.Kom Financial Planner / Fund Manager PT. Millennium Penata Futures Makassar +62 815 2417 8898

Candlestick Charts Provide Profitable Swing Trades

Learning the methods to evaluate the signals makes swing trading an easy program to extract profits out of the market consistently. Candlestick signals provide two valuable facets. First, the signal searches locate the high potential profitable swing trades. The searches can be constructed to find the signals that occur at the best positions during a trend movement. Finding a candlestick buy signal when stochastics are oversold or searching for a gap up after a Doji are a couple of examples on how to fully utilize the search capabilities. The second facet is the pinpointing when to get into and out of a trade as explained earlier. Swing trading concentrates on the alignment of parameters to maximize profits. The candlestick signals add the dimension of allowing successful trades to run, as well as showing when a trade has fizzled

The Major Japanese Candlestick Patterns
There are really only 12 major Candlestick patterns that need to be committed to memory. The Japanese Candlestick trading signals consist of approximately 40 reversal and continuation patterns. All have credible probabilities of indicating correct future direction of a price move. The following dozen signals illustrate the major signals. The definition of "major" has two functions. Major in the sense that they occur in price movements often enough to be beneficial in producing a ready supply of profitable trades as well as clearly indicating price reversals with strength enough to warrant placing trades. Utilizing just the major Japanese Candlesticks trading signals will provide more than enough trade situations for most investors. They are the signals that investors should contribute most of their time and effort. However, this does not
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Reality demonstrates that some of them occur very rarely. is derived by the formation of the signal looking like a gravestone. The name. Here are a few of the major candlestick formations: A Doji is formed when the open and the close are the same or very close. the signal is referred to as a Rickshaw Man.Candlestick Charts Provide Profitable Swing Trades mean that the remaining patterns should not be considered. If the open and the close are in the center of the session's trading range. Longlegged Doji's are often signs of market tops. Those signals are extremely effective for producing profits. Gravestone Doji.Kom Financial Planner / Fund Manager PT. The Long-legged Doji has one or two very long shadows. Other formations. although they reveal high potential reversals. The appearance of a Doji should alert the investor of major indecision. ." Amiruddin. The length of the shadows are not important. The Japanese believe these signals to mean that the trend has "lost it's sense of direction. but it's forte is calling market tops. The Japanese interpretation is that the bulls and the bears are conflicting. It is found occasionally at market bottoms. Millennium Penata Futures Makassar +62 815 2417 8898 . may not be considered as strong a signal as the major signals. S. The Gravestone Doji is formed when the open and the close occur at the low of the day.

A white body is formed that opens lower and closes higher than the black candle open and close from the previous day. The price comes up to where it closes above the 50% level of the black body. It is created at the end of an up-trending market. It is a two candle pattern at the end of a declining market. Millennium Penata Futures Makassar +62 815 2417 8898 . The second day is a long white body. The first day of the pattern is a strong white real body. Amiruddin. under the trading range of the previous day. The Bearish Engulfing Pattern is directly opposite to the bullish pattern. The second day's price opens higher than any of the previous day's trading range. The black real body completely engulfs the previous day's white body. This complete engulfing of the previous day's body represents overwhelming buying pressure dissipating the selling pressure. This shows that the bears are now overwhelming the bulls. The white day opens sharply lower.Kom Financial Planner / Fund Manager PT. The first day real body is black. The Piercing Pattern is a bottom reversal. S. The Dark Cloud Cover is a two-day bearish pattern found at the end of an upturn or at the top of a congested trading area.Candlestick Charts Provide Profitable Swing Trades The Bullish Engulfing Pattern is formed at the end of a downtrend.

S. The evening star is found at the end of the uptrend. Millennium Penata Futures Makassar +62 815 2417 8898 . Like the morning star. it foretells the sunrise. It got its name by looking like a shooting star. occurs just before the darkness sets in. The Morning Star is a bottom reversal signal. A Shooting Star sends a warning that the top is near. The bodies are at the top of the trading session. This pattern at the bottom of the down-trend is called a Hammer. The pattern consists of a three day signal.Kom Financial Planner / Fund Manager PT. It is important to wait for Amiruddin. It is hammering out a base. the planet Venus. the planet Mercury. The Evening Star is the exact opposite of the morning star. The evening star. at the bottom of a trend. The Shooting Star Formation. The Japanese word is takuri. It is known as an inverted hammer. meaning "trying to gauge the depth". or the rising prices. is a bullish signal.Candlestick Charts Provide Profitable Swing Trades Hammer and Hanging-man are candlesticks with long lower shadows and small real bodies.

A wellfounded rule of Candlestick charts followers is that when a Doji appears at the Amiruddin. Just this fact alone creates a multitude of investment programs that can produce inordinate profits. What is the best method for making big trading profits? Knowing how to read the stock charts! Knowing the direction of a trading entity and the strength of that move! Candlestick analysis perfects that trading strategy. chart analysis becomes very easy. appearing at the end of an extended trend. When utilizing the major candlestick signals. a state of indecision. Candlestick analysis does not require numerous indicators. the process should be as simple as possible. When learning how to read stock charts. Millennium Penata Futures Makassar +62 815 2417 8898 . The Doji is one of the most revealing signals in Candlestick trading. The trend may be ending. has significant implications. The major signals reveal an immense amount of information.Kom Financial Planner / Fund Manager PT. when learning how to read stock charts. Hundreds of years of investing refinement have proven that point. always take notice. S. Now that we have seen some of the basic signals. Candlestick charts reveal high probability profitable reversals. let's take a look at the added power of some of the other formations The Dynamic Doji . The major signals clearly illustrate trend reversals. The Japanese say that whenever a Doji appears. Most investors. feel that they need a multitude of indicators on one chart.A Clear Trend Reversal Signal The Doji Signal– Learning how to read stock charts can be a very simple process. It clearly indicates that the Bulls and the Bears are at an equilibrium. The Doji.Candlestick Charts Provide Profitable Swing Trades the bullish verification.

this essentially creates a cross formation. Otherwise.Candlestick Charts Provide Profitable Swing Trades top of a trend. the horizontal line represents the open and close occurring at the same level. Conversely. (over-bought or oversold conditions can be defined using other indicators such as stochastics). in an overbought area. the weight of the market could take the trend lower. sell immediately. becomes an extremely high probability reversal situation. it is demonstrating that there is indecision now occurring at an extreme portion of a trend. DOJI STAR Upon seeing a doji in an over-bought or oversold conditions. When a doji appears. 2. especially when viewed at the end of a bullish trend. S. Knowing how to read the stock charts reveals the parameters that make a major signal most effective. Criteria 1. As the following illustration demonstrates. Amiruddin. Millennium Penata Futures Makassar +62 815 2417 8898 . This indecision can be portrayed in a few variations of the doji. It is formed when the open and the close occur at the same level or very close to the same level in a specific timeframe. The open and close are the same or nearly the same The length of the shadow should not be excessively long.Kom Financial Planner / Fund Manager PT. The Doji signal is comprised of one candle. In candlestick charting. The vertical line represents the total trading range during that time. a Doji seen at the bottom of an extended downtrend requires buying signals the next day to confirm the reversal.

Millennium Penata Futures Makassar +62 815 2417 8898 .Kom Financial Planner / Fund Manager PT.Candlestick Charts Provide Profitable Swing Trades Amiruddin. S.

appearing at the end of an extended trend. However. The Doji signal is one of Amiruddin.Kom Financial Planner / Fund Manager PT. a state of indecision. It clearly indicates that the bulls and the bears are at an equilibrium. 3. usually an exagerated daily move compared to the normal daily trading range seen in the majority of the trend.Candlestick Charts Provide Profitable Swing Trades Signal Enhancements 1. Large volume on the signal day increases the chances that a blowoff day has occurred. Candlestick analysis perfects the trading strategy. Just this fact alone creates a multitude of investment programs that produce inordinate profits. will produce the vast majority of the trend reversals. Candlestick analysis incorporates approximately 50 to 60 Candlestick signals. has significant implications. The Doji. The trend may be ending. 2. considered the major signals. S. although it is not a necessity. It is more effective after a long candle body. The Doji is one of the most revealing signals in Candlestick trading. Candlestick formations reveal high probability profitable reversals. twelve of the signals. Millennium Penata Futures Makassar +62 815 2417 8898 . A gap away from the previous day's close sets up for a stronger reversal move. they move based on the investor perception of those fundamentals. Japanese rice traders realized that prices do not move based on fundamentals. Recognizing and understanding the psychology that formed these major signals will provide completely new insights for investors in understanding optimal times to buy and sell. Hundreds of years of investing refinement have proven that point. What is the best method for making big trading profits? Knowing the direction of a trading entity and the strength of that move.

Kom Financial Planner / Fund Manager PT. The vertical line represents the total trading range during that time. A wellfounded rule of Candlestick followers is that when a Doji appears at the top of a trend. In Candlestick charting. Conversely. When a Doji appears. sell immediately. a Doji seen at the bottom of an extended downtrend requires buying signals the next day to confirm the reversal.Candlestick Charts Provide Profitable Swing Trades the most predominant reversal indicators. this essentially creates a “cross” formation. S. Doji Star Upon seeing a Doji in an overbought or oversold condition. As the following illustration demonstrates. and monthly charts for the swing trader and long-term investor. Overbought or oversold conditions can be defined using other indicators such as stochastics. in an overbought area. The Japanese say that whenever a Doji appears. whether using a one-minute. or fifteen-minute chart for day trading or daily. it is demonstrating that there is indecision now occurring at an Amiruddin. an extremely high probability reversal situation becomes evident. five-minute. The Doji signal is composed of one candle. Otherwise. It is formed when they open and the close occur at the same level or very close to the same level in a specific timeframe. the horizontal line represents the open and close occurring at the same level. It is very effective in all-time frames. always take notice. Millennium Penata Futures Makassar +62 815 2417 8898 . weekly. the weight of the market could take the trend lower.

This indecision can be portrayed in a few variations of the Doji. Millennium Penata Futures Makassar +62 815 2417 8898 . S. but by the close the price is beaten back down to the opening price. The victories of the day are all lost by the end of the day. is a specific version of the Shooting Star. Gravestone Doji Amiruddin.Kom Financial Planner / Fund Manager PT. it is a variation of the Inverted Hammer. Long-legged Doji The Gravestone Doji is formed when the open and the close occur at the low end of the trading range. The Japanese analogy is that it represents those who have died in battle. The price opens at the low of the day and rallies from there. the price moved up and down dramatically before it closed at or very near the opening price. A Gravestone Doji. This reflects the great indecision that exists between the bulls and the bears. At the bottom. Throughout the time period. at the top of the trend. The Long-legged Doji is composed of long upper and lower shadows.Candlestick Charts Provide Profitable Swing Trades extreme portion of a trend.

Millennium Penata Futures Makassar +62 815 2417 8898 . trades lower. it becomes a variation of the Hanging Man.Kom Financial Planner / Fund Manager PT. then closes at the open price which is the high of the day. S. it becomes a specific Hammer. At the bottom of a trend. At the top of the market. Dragonfly Doji Doji’s that occur in multi-signal patterns make those signals more convincing reversal signals Amiruddin.Candlestick Charts Provide Profitable Swing Trades The Dragonfly Doji occurs when trading opens. An extensively long shadow on a Dragonfly Doji at the bottom of a trend is very bullish.

The Candlestick signals become an important tool to cut through all the investment rhetoric. Regardless of whether you are trading long-term holds for day trading from the one-minute. Millennium Penata Futures Makassar +62 815 2417 8898 . five-minute. and fifteen-minute charts.Abandoned Baby Having the knowledge of what a Doji represents. the news station commentary started exuding accolades on the company’s products. As the price skyrocketed.Kom Financial Planner / Fund Manager PT. indecision. A prime example can be seen in the Taser chart from this past year. it became clear that the price had gotten well ahead of the fundamentals. But where did you take profits? Where did you start shorting a stock? That answer became obvious once we saw all of the huge Doji’s at the top. S. Amiruddin. the Doji illustrates indecision in any time frame.Candlestick Charts Provide Profitable Swing Trades Harami – Doji Evening Star . allows the Candlestick analyst to take advantage of reversal moves at the most opportune levels. As was demonstrated during Taser’s price run from approximately a $5 range up to the $65 range in a matter of months.

more aggressively. prepared to short the stock on the next day’s The the lower Doji open.Candlestick Charts Provide Profitable Swing Trades This illustration format for graphic of taking being indecision provided a profits or even. the massive amount of information can be overwhelming. This is not rocket science. of becomes illustration indecision at these prices. Becoming educated in investing should be narrowed down to one basic premise. What investment programs should I utilize that fit my investment risk factors? Learning to invest in the stock market not Amiruddin. There are multitudes of sources that will give their opinions on how to invest. It is based on the the observations of successful Candlestick trading over the past four centuries Learning to Invest in the Stock Market Using the Bullish Engulfing Signal Learning to invest in the stock market is a difficult process.Kom Financial Planner / Fund Manager PT. Millennium Penata Futures Makassar +62 815 2417 8898 . S. For the person that is just learning to invest in the stock market.

A Bullish Engulfing signal is one of the major signals. an investor can clearly understand what was going on in investor sentiment to cause a reversal. 400 years of observations from Japanese Rice traders has recognized the Bullish Engulfing signal as a very high probability reversal signal.Candlestick Charts Provide Profitable Swing Trades only includes finding an investment program that fits ones investment nature. S. BULLISH ENGULFING PATTERN Description Amiruddin. One of the fastest and easiest processes for learning to invest in the stock market is learning the candlestick signals. Each major signal provides an immense amount of information. Utilizing candlestick signals makes learning to invest in a stock market much easier to understand. When the elements out of a Bullish Engulfing signal are broken down.Kom Financial Planner / Fund Manager PT. Millennium Penata Futures Makassar +62 815 2417 8898 . but also finding a program that produces the results an investor expects. The 12 major signals found in candlestick analysis not only reveal high probability reversal situations but understanding the psychology that formed those signals makes understanding why reversals occur much easier to comprehend.

3. The previous day shows the trend was running out of steam. the first candle being the color of the previous trend. The body of the second day completely engulfs the body of the first day. Prices have been in a definable down trend. the reversal has a greater probability of working. the white candle completely engulfs the previous day’s black candle. Large volume on the engulfing day increases the chances that a blowoff day has occurred. Millennium Penata Futures Makassar +62 815 2417 8898 . 3. S. Shadows are not a consideration. When the engulfing pattern occurs after a fast move down. The engulfing body engulfs the body and the shadows of the previous day. 4. 2. Amiruddin. The exception to this rule is when the engulfed body is a doji or an extremely small body. The body of the second candle is opposite color of the first candle. there will be less supply of stock to slow down the reversal move. 2. The Bullish Engulfing Pattern formed after a downtrend. A fast move makes a stock price over extended and increases the potential for profit taking. The large body shows that the new direction has started with good force.Kom Financial Planner / Fund Manager PT. A large body engulfing a small body. even if it has been short term. It opens lower that the previous day’s close and closes higher than the previous day’s open.Candlestick Charts Provide Profitable Swing Trades The Engulfing pattern is a major reversal pattern comprised of two opposite colored bodies. Criteria 1. Thus. Signal Enhancements 1.

the buyers have taken over and moved the price above where it opened the day before. S. Learning how to use the Bullish Engulfing signal at the proper locations in a trend can produce consistent and high profit trades.Candlestick Charts Provide Profitable Swing Trades 5. the greater the probability of a strong reversal. When investors are learning the stock market they should utilize information that has worked with high probability in the past. Pattern Psychology After a downtrend has been in effect. The emotional psychology of the trend has now been altered. Millennium Penata Futures Makassar +62 815 2417 8898 .Kom Financial Planner / Fund Manager PT. Learning to invest in the stock market does not need to be confusing. they became legendarily wealthy. The common sense elements conveyed in candlestick signals makes for a clear and concise trading technique for beginning investors as well as experienced traders. a major candlestick reversal signal. the price opens lower than where it closed the previous day. Using the candlestick charts helps an investor become acclimated to the common sense psychology that make prices move. Candlestick patterns have been observed and utilized by Japanese Rice traders for centuries. Not only did they become wealthy using these signals. The Bullish Engulfing signal. Amiruddin. The greater the open gaps down from the previous close. Before the end of the day. allows an investor to improve their probabilities of been in a correct trade.

Most stock market data requires evaluation. S.Kom Financial Planner / Fund Manager PT. The Bearish Engulfing signal visually illustrates that there has been a dramatic change in investor sentiment. The information built into the signals is the accumulation of observations from Japanese Rice traders over the centuries. Millennium Penata Futures Makassar +62 815 2417 8898 The . How do you know which stock market data is pertinent? The information that is used consistently for centuries is an obvious clue. This is the stock market data that an Amiruddin. the candlestick signals provide that same information in a graphic form.Candlestick Charts Provide Profitable Swing Trades Using the Bearish Engulfing Signal Most investors get confused with the massive amounts of stock market data. The 12 major candlestick signals make for very high probability research. This evaluation often involves complicated formulas. It provides a very clear representation of what is going on in investor sentiment. Understanding how to evaluate what each of the major candlestick signals reveals is very important. Candlesticks were developed specifically to add more information to chart analysis. The Bearish Engulfing signal is one of the 12 major signals. What becomes the most important element when utilizing stock market data? The results the information has produced in the past. Especially for new investors. A simple description of the Bearish Engulfing signal reveals why the signal works very well as a candlestick sell signal. The candlestick signals are very basic visual analytical tools. Where most stock market data is numeric. trying to decipher which stock market data is the most important is an impossible hurdle. information conveyed in each major signal has viable results. Candlestick signals dramatically reduce the time for importing important stock market data.

These signals were developed through simple observation. They are most effective when founding the oversold Amiruddin. It also reveals an opportunity for establishing a good short position. BEARISH ENGULFING PATTERN Candlestick Engulfing Patterns . The information conveyed in this signal creates an extremely high probability that the buying is over. Millennium Penata Futures Makassar +62 815 2417 8898 . Japanese rice traders become ultra-wealthy using Candlestick signals to trade rice.Neon Signs to Buy and Sell. Stocks & Commodities Magazine The most striking facet of Japanese candlesticks is their ease of identification.Kom Financial Planner / Fund Manager PT. This provided a very powerful tool for projecting future price movement. Two of the most compelling candlestick signals are the Bullish Engulfing Pattern and Bearish Engulfing Pattern. Hundreds of years ago. As years of successful utilization of the signals progressed. they even were able to analyze the psychology behind forming the signals.Candlestick Charts Provide Profitable Swing Trades investor should be using for both technical analysis as well as fundamental analysis. S.

It becomes very plain to see that a change has occurred in investor sentiment. S. (O1>C1) and (O O1).Bullish Engulfing Witnessing a white bullish candle. The Bullish Engulfing pattern consists of two bodies. Or the lower the open of the white candle. at the end of a substantial downtrend or the overbought area for the Bearish pattern. it will close above the previous days open. Figure 1 . or the embracing line. engulfing the previous black candle. The signal day opens lower than the previous days close. Defined as the open of yesterday is greater than the close Amiruddin.Kom Financial Planner / Fund Manager PT. The bigger the previous days candle being engulfed. known as the DAKI. formula relatively simple. The first body is the same color as the current trend. stands out like a neon sign after a series of black candles. the more effective the new trend signal will be. then it trades higher so by the end of the day.Candlestick Charts Provide Profitable Swing Trades area. A couple of simple factors make the Bullish Engulfing pattern more convincing. This new white candle now engulfs the previous days candle. Millennium Penata Futures Makassar +62 815 2417 8898 . the more powerful is the next advance should be. the second is the opposite color. then coming back up to engulf the previous The day.

Note in the Dow Jones industrial chart that the whole market sentiment reversed at the Bullish Engulfing formations. Figure 2 .Kom Financial Planner / Fund Manager PT. futures or any other trading entity.Candlestick Charts Provide Profitable Swing Trades of yesterday. And the open today is less than the close of yesterday. Having the knowledge of just eight or nine Candlestick signals. S. When is “low” the right time to buy? The Bullish Engulfing pattern reveals when the buyers have stepped in. The Bullish Engulfing pattern represents a complete change in investor sentiment. commodities. And the close of today is greater than the open of yesterday. produces huge advantages for analyzing the direction of the markets in general. This reinforces the analysis of an individual stock price. the Bullish and Bearish Engulfing patterns being on that list.Dow Jones Industrials Amiruddin. Millennium Penata Futures Makassar +62 815 2417 8898 . The signals work equally well when analyzing indexes as they do for individual stocks. Using this pattern as a buy signal eliminates the need to grab for the fallen knife.

Knowing that the market indexes have turned positive permits an investor to commit funds to the long side with more aggression than normal. you now know to close the position. a bearish engulfing pattern has formed. After an obvious uptrend. As seen in the above DOW chart. If trading comes back through that point and closes below the open of the previous day. away from the previous days close. putting a stop one half way down the last bullish candle is usually prudent. If stochastics are showing that this is occurring in the overbought area. Knowing the direction of the market allows the investor to establish positions with more confidence. Amiruddin.Kom Financial Planner / Fund Manager PT. the bulls finally gap it open due to there exuberance to get in the position. Millennium Penata Futures Makassar +62 815 2417 8898 . S. If nothing more than being long. however slight. the candlestick investor becomes very diligent. A gap. If long.Candlestick Charts Provide Profitable Swing Trades The Bearish Engulfing pattern is the exact opposite that of the Bullish Engulfing pattern. Now you can short the stock with confidence. should alert the candlestick investor that the trend may be ending.

The visual depiction of a Bearish Engulfing pattern creates an ominous darkness at the top of a trend. S. the Bearish Engulfing pattern is very easy to see.Enzon Inc Amiruddin.Candlestick Charts Provide Profitable Swing Trades being able to visualize the Bullish Engulfing patterns after extensive downtrend would have allowed an investor to get in and make impressive profits.Kom Financial Planner / Fund Manager PT. thus a white candle. ( C1 >O1) and the(O>C1) and (C>O1). As in the Bullish Engulfing pattern. Millennium Penata Futures Makassar +62 815 2417 8898 . It does not take learning complicated formulas or analyzing numerous indicators to understand a candlestick signal. The next day has an open than is higher than the previous day’s close and closes lower than the previous days open.Bearish Engulfing The black candle acts as an obvious sign against the uptrend. Figure 4 . Figure 3 . The formula is exactly opposite of the Bullish Engulfing pattern formula. It stands out as a blatant change of direction in the trend. The white bodies in the uptrend now have a large black candle stopping the trend. The close of the first day is higher than the open.

A big bullish Engulfing pattern observed at the top of a trend usually represents the last gasp of the trend. they gap the price up. As the trend persists. Conversely.Kom Financial Planner / Fund Manager PT. buyers finally get so exuberant. S. chart. This clearly illustrates that the sellers have gained strength. As stated early. Remembering this fact provides another opportunity to extract Amiruddin. the Bearish Engulfing pattern is valid in the overbought area. the signals are highly accurate when a bullish Engulfing pattern is witnessed during oversold conditions. The last gasp sellers create a bearish engulfing pattern which usually is followed by increased buying.Candlestick Charts Provide Profitable Swing Trades Note how the Bearish engulfing pattern terminates the uptrend in the Enzon Inc. But both have a recognized indicator at the other end of a trend.. The Engulfing patterns are statistically valid for indicating reversals at the tops and the bottoms. It immediately starts losing ground until it finally closes lower than where it opened the previous day. The same occurs at the bottom of a trend with the Bearish Engulfing pattern. Millennium Penata Futures Makassar +62 815 2417 8898 . That confirmation of selling starts a trend of selling.

This is not rocket science.Kom Financial Planner / Fund Manager PT.Candlestick Charts Provide Profitable Swing Trades profits out of a price trend. Use it to your advantage. S. The Japanese Rice traders become ultra-wealthy utilizing these patterns. Amiruddin. When the “hopeful” are buying once more at the top or the “panicked” are selling their last stock position at the bottom. The Candlestick Engulfing patterns have survived centuries of investment skepticism. Rice traders developed high profit trading programs using purely visual recognition of reoccurring high probability formations. the Candlestick investor is already familiar with what that last bullish or bearish engulfing pattern indicates at the wrong end of a trend. Putting on positions becomes a comfortable endeavor while everybody else is buying or selling the wrong way. Millennium Penata Futures Makassar +62 815 2417 8898 . This is the most convincing form of statistical analysis.

Kom Financial Planner / Fund Manager PT. others have English names. up/down. The combination of most patterns can be reduced to one of these patterns. Each candlestick trading formation or series of formations can clearly illustrate the change of investor sentiment. YANG is bullish. S. These terms are actually Chinese. but are used by Western analysts to account for opposites.Candlestick Charts Provide Profitable Swing Trades Candlestick Pattern Formations Japanese Candlestick charting dramatically increases the information conveyed to the visual analysis. Long days Amiruddin. Each candle formation has a unique name. Single candles are often referred to as YIN and YANG lines. in/out. There are nine basic YIN and YANG lines in Candlestick analysis. Some have Japanese names. and over/under. YIN is bearish. INN and YOH are the Japanese equivalents. This process is not apparent in standard bar chart interpretation. These are expanded to fifteen to cover all possibilities clearly. Millennium Penata Futures Makassar +62 815 2417 8898 .

Marubozu means close cropped or close-cut. Bald or Shaven Head are more commonly used in candlestick analysis. It's meaning reflects the fact that there are no shadows extending from either end of the body. White Maruboza Amiruddin. Millennium Penata Futures Makassar +62 815 2417 8898 . The recent price action of a stock will determine whether a "long" candle has been formed. Short Days Short days can be interpreted by the same analytical process of the long candles. Long represents the length of the candle body. S. Analysis of the previous two or three weeks of trading should be a current representative sample of the price action.Candlestick Charts Provide Profitable Swing Trades A long day represents a large price move from open to close.Kom Financial Planner / Fund Manager PT. There are a large percentage of the trading days that do not fall into either of these two catagories. Maruboza In Japanese. What qualifies a candle body to be considered long? That is a question that has to be answered relative to the chart being analyzed.

It opens on the low and immediately heads up. It is considered a weak indicator.Candlestick Charts Provide Profitable Swing Trades <> The White Marubozu is a long white body with no shadows on either end. S.Kom Financial Planner / Fund Manager PT. Counter to the Black Marubozu. Closing Marubozu Amiruddin. on its high. The Japanese often call it the Major Yin or Marubozu of Yin. especially if it occurs during a downtrend. It continues upward until it closes. It is often identified in a bearish continuation or bullish reversal pattern. It is called a Major Yang or Marubozu of Yang. This is an extremely strong pattern. A long black candle could represent the final sell off. it is often the first part of a bullish continuation pattern or bearish reversal pattern. Consider how it is formed. Millennium Penata Futures Makassar +62 815 2417 8898 . making it an "alert" to a bullish reversal setting up. Black Marubozu A long black body with no shadows at either end is known as a Black Marubozu.

A white body will not have a shadow at the top. A black body will not have a shadow at the bottom. Amiruddin. In both cases. A white body would not have a shadow at the bottom end . Though these are strong signals. S.Kom Financial Planner / Fund Manager PT.Candlestick Charts Provide Profitable Swing Trades A Closing Marubozu has no shadow at it's closing end. the black candle would not have a shadow at it's top end. these are strong signals corresponding to the direction that they each represent. Opening Marubozu The Opening Marubozu has no shadows extending from the open price end of the body. Millennium Penata Futures Makassar +62 815 2417 8898 . they are not as strong as the Closing Marubozu.

This demonstrates some indecision on the part of the bulls and the bears. The lengths of the shadows can vary.Kom Financial Planner / Fund Manager PT. in a trending or oscillating market.Candlestick Charts Provide Profitable Swing Trades Spinning Top Spinning Tops are depicted with small bodies relative to the shadows. the more significance the Doji becomes. It is formed when the open and the close are the same or very near the same. They are considered neutral when trading in a sideways market. The size of the shadow is not as important as the size of the body for forming a Spinning Top. a relatively good rule of thumb is that the next days trading will probably move in the direction of the opening price. The dimension of knowing what the formations signify magnifies the potential for Amiruddin. However. S. Doji The Doji is one of the most important signals in candlestick analysis. ALWAYS pay attention to the Doji. Millennium Penata Futures Makassar +62 815 2417 8898 . The longer the shadows are. More will be explained about the Doji in the next few pages.

This is part of our ongoing training for technical analysis stock tutorials for trading candlestick charts and candlestick patterns. 2. Amiruddin. unlike the bars of bar charts. Millennium Penata Futures Makassar +62 815 2417 8898 . For a complete list of all the technical analysis stock tutorials in our site you will want to begin with The Major Candlestick Signals (click here. We hope you are benefiting from the weekly additions of these secondary candlestick chart patterns and encourage you to check back often. S. The bodies. Criteria 1. However.Kom Financial Planner / Fund Manager PT. it is a very significant reversal indicator. The three-day period illustrates indecision of a period of days.Candlestick Charts Provide Profitable Swing Trades profits. It is comprised of three Dojis. especially when viewed at the end of a bullish trend. reveal an immense amount of information. All three days are Dojis. The length of the shadow should not be excessively long.) Tri Star Pattern Description The Tri Star pattern is relatively rare. Trading the Tri-Star Pattern Technical analysis stock tutorials provided by The Candlestick Forum. The middle day gaps above or below the first and third day.

The simple logic that is built into candlestick charts makes the evaluation for trade entry and exit Amiruddin. This additional information creates a huge advantage for the candlestick investor. This information becomes valuable for projecting a reversal or a continuation of a trend. Candlestick charts demonstrate what investor sentiment was doing during the timeframe and how it did it. The next day gaps in the same direction as the existing trend and forms the second Doji. Millennium Penata Futures Makassar +62 815 2417 8898 . 2. Because of the rarity of this pattern. Candlestick charts provide huge amounts of information Candlestick charts allow an investor to develop trading strategies that maximize profit potential. double-check the data source to confirm that the Dojis are not bad data. the appearance of the first Doji reveals that there is now indecision in the bull’s and the bear’s camp. Large volume on one of the signal days increases the chances that a significant reversal is taking place. The greater the gap. candlestick charts reveal 'how' that price moved. The final Doji is the last gasp. away from the previous days close. S. This reveals that no certainty for either direction has become apparent. sets up for a stronger reversal move.Kom Financial Planner / Fund Manager PT. Pattern Psychology After an up-trend or a downtrend has been in effect. the candlestick chart will reveal whether a specific candlestick signal had been formed. Unlike bar chart that illustrate what price movements did during a specific timeframe. Any investor that had any conviction is now reversing their position. The third day opens opposite the previous trends direction and forms another Doji that day. Although a price may have been up on the day.Candlestick Charts Provide Profitable Swing Trades Signal Enhancements 1.

If the next few days show more spinning tops. trying to sell when the buyers are stepping away.Candlestick Charts Provide Profitable Swing Trades strategies much easier to execute. Two scenarios can be put forth upon seeing this type of market condition. doji. For example. or other indecisive trading formations. but just taking some profits at a major resistance level. Market Direction . That will be confirmed by a long bearish candle in the next day or so. during that day. The spinning tops could be illustrating the prelude to a pullback. Millennium Penata Futures Makassar +62 815 2417 8898 .What are the markets telling us? Both the Dow and the NASDAQ have been in the overbought conditions for the past few weeks. a candlestick chart that reveals a price that closed higher on the day in an overbought condition may not have any relevance to somebody that does not recognize a candlestick signal. Stochastics are now in the process of turning down. Being able to execute trades at an early stage of a reversal keeps an investor from having to execute less favorable trades when a trend is already in motion. A day or two more of indecisive selling could then be followed by another strong candle that would take prices up through the obvious resistance level. without any severe selling. Amiruddin. providing a completely different scenario. As of yet. This would give a clear indication that the spinning tops were a reversal action. Utilizing a candlestick chart would reveal a different story. an investor can prepare for when they get in and out of trades with a much more clear analysis.Kom Financial Planner / Fund Manager PT. The Dow has now reached the obvious resistance level at the 10. that would be more of an indication that the markets are not selling off. The past three days of trading have demonstrated spinning tops. S. However. it may still appear as a positive day to somebody using bar charts or just reading the results of the day from the Wall Street Journal.700 level. A Shooting Star signal would have formed. the selling has been indecisive. if that price. had been much higher but closed near the lower end of the trading range. Candlestick charts produce the evaluation graphics that allow an investor to make decisions instantly. When the major signals appear on candlestick charts. This indicates indecision occurring at an important technical level.

Candlestick Charts Provide Profitable Swing Trades The NASDAQ showed some minor indecisive trading over the past few days. the selling has not yet shown any severe sell signals. There are stocks moving in a positive direction due to those sectors still remaining strong or at least have not revealed any sell signals. Millennium Penata Futures Makassar +62 815 2417 8898 . any indecisive or positive trading would reveal that the uptrend may not be over.Kom Financial Planner / Fund Manager PT. This becomes a much easier strategy to implement when utilizing the candlestick Amiruddin. S. What is the best way to position a portfolio with this type of market scenario? Since the market direction is still in question. There are other sectors/stocks that are now showing good bearish signals. The large selling of Tuesday was followed by a hammer/doji formation. After the doji on Wednesday. an obvious factor can be evaluated. a prudent strategy would be to have both long and short positions open. A large bearish candle at this level would confirm the selling. Although the stochastics are turning over. When the direction of the market is in doubt.

S. This becomes a very simple money management technique that can still take advantage of indecisive periods in the markets. the charts still show bullish tendencies will probably not selloff as hard as the charts that show clear candlestick sell signals.Kom Financial Planner / Fund Manager PT. The rationale is always that the candlestick signals are the cumulative knowledge of all investors buying and selling a particular trading entity during a specific timeframe. Of course.Candlestick Charts Provide Profitable Swing Trades charts. Simply stated. This allows an investor to still produce a net profit from the proper positioning of long and short positions of the portfolio despite which direction the market may move with strength. the opposite is true. Millennium Penata Futures Makassar +62 815 2417 8898 . Amiruddin. The charts that are showing candlestick sell signals will not move in a very bullish manner even if the market starts showing great bullish strength.

Candlestick Charts Provide Profitable Swing Trades As illustrated in the Advanced Energy Industries chart. the 50 day moving average. a Shooting Star signal in the overbought condition illustrated that the buying was now been overtaken by the sellers. SHOOTING STAR (Nagare Boshi) Amiruddin. with the possibility of testing the next support level. No matter which way the market may move in the next few days. the probabilities are extremely strong that this stock price should continue its downtrend. Millennium Penata Futures Makassar +62 815 2417 8898 . S.Kom Financial Planner / Fund Manager PT.

The price opens and trades higher. Signal Enhancements 1. Large volume on the Shooting Star day increases the chances that a blow-off day has occurred although it is not a necessity. The bulls are in control. This could indicate that the bulls still have control if analyzing a Western bar chart. The longer the upper shadow. The day after the Shooting Star signal opens lower. It is found at the top of an up trend. But before the end of the day. The Japanese named this pattern because it looks like a shooting star falling from the sky with the tail trailing it. It is easily identified by the presence of a small body with a shadow at least two times greater than the body. the atmosphere is bullish.Kom Financial Planner / Fund Manager PT. The real body is at the lower end of the trading range. 2. The color of the body is not important although a black body should have slightly more bearish implications. a gap down with a lower close. 4. The following day needs to confirm the Shooting Star signal with a black candle or better yet. the long upper shadow represents that sellers had started stepping in at these levels. There should be no lower shadow or a very small lower shadow. However. the higher the potential of a reversal occurring. Pattern Psychology After a strong up-trend has been in effect. S. Criteria 1. creating a small body for the day. A gap up from the previous days close sets up for a stronger reversal move provided: 3. 3. 2. The upper shadow should be at least two times the length of the body. Even though the bulls may have been able to keep the price Amiruddin. 4. Millennium Penata Futures Makassar +62 815 2417 8898 .Candlestick Charts Provide Profitable Swing Trades Description The Shooting Star is also comprised of one candle. the bears step in and take the price back down to the lower end of the trading range.

Candlestick Charts Provide Profitable Swing Trades

positive by the end of the day, the evidence of the selling was apparent. A lower open or a black candle the next day reinforces the fact that selling is going on.

Using The Hammer Signal

Learning about the stock market for personal stock market investing can be very costly if not approached in the right manner. Attributes built into candlestick charts greatly reduce the potential of losses while learning about the stock market. The knowledge conveyed in just one of the 12 major signals helps investors understand the dynamics of what makes price move. This is true for investors that are just learning about the stock market all the way up to experienced traders. The candlestick charts are in use today because they have worked effectively throughout the centuries. Japanese Rice traders recognized that investor sentiment operates in reoccurring patterns. They recognized candlestick charts provided patterns that would reoccur as a trend was about ready to reverse. This became valuable information. The psychological elements that are incorporated into the major candlestick signals makes learning about the stock market easier and more profitable. Out of a universe of 50 to 60 candlestick reversal signals, it has been found that only 12 of the signals require attention. These 12 major signals will provide more trade situations than most investors will be able to utilize. The insights gained

Amiruddin, S.Kom Financial Planner / Fund Manager PT. Millennium Penata Futures Makassar +62 815 2417 8898

Candlestick Charts Provide Profitable Swing Trades

from dissecting each of the 12 major signals becomes a valuable tool for learning about the stock market. The common complaint for most investors learning to read candlestick charts was there were too many candlestick signals. When learning the stock market, an investor wants a proven investment technique. Candlestick charts produces a very strong trading platform the candlestick signals have proven themselves to work. The question is not whether they work or not, the question is whether somebody can learn how to use them correctly. The Candlestick Forum is a stock market education site that takes candlestick charts and individual candlestick signals and reduces the information down to the basic elements. If each signal is dissected and studied, the information that the signal conveys will become a powerful investment tool for the rest of your life. The knowledge presented in Candlestick Charts makes learning the stock market, or any other trading market, much easier to understand. Each signal provides an immense amount of information. One of the most visually compelling signals is the Hammer signal. The hammer signal is easily recognized by the lower shadow ( the tail ) protruding to the downside after an extended downtrend. HAMMERS AND HANGING MAN

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Candlestick Charts Provide Profitable Swing Trades

Description The Hammer is comprised of one candle. It is easily identified by the presence of a small body with a shadow at least two times greater than the body. Found at the bottom of a downtrend, this shows evidence that the bulls started to step in. The color of the small body is not important but a white candle has slightly more bullish implications than the black body. A positive day is required the following day to confirm this signal. Criteria 1. The lower shadow should be at least two times the length of the body. 2. The real body is at the upper end of the trading range. The color of the body is not important although a white body should have slightly more bullish implications. 3. There should be no upper shadow or a very small upper shadow. 4. The following day needs to confirm the Hammer signal with a strong bullish day. Signal Enhancements 1. The longer the lower shadow, the higher the potential of a reversal occurring. 2. A gap down from the previous day's close sets up for a stronger reversal move provided the day after the Hammer signal opens higher.
Amiruddin, S.Kom Financial Planner / Fund Manager PT. Millennium Penata Futures Makassar +62 815 2417 8898

Pattern Psychology After a downtrend has been in effect. They start bringing the price back up towards the top of the trading range. Candlestick signals are a great benefit for the beginning investor as well as the experienced trader.Kom Financial Planner / Fund Manager PT. This represents that the bears could not maintain control. Large volume on the Hammer day increases the chances that a blow off day has occurred. A higher open the next day would confirm that the bulls had taken control. The candlestick signals. The Hanging Man Signal Learning how the stock market works for novices is a difficult process. involve the visual elements produced by human emotions. Unfortunately. The price opens and starts to trade lower. The bulls then step in. the atmosphere is very bearish. Most of that advice does not teach an investor how to utilize human emotions. the new investor can be overwhelmed with stock trading advice. Millennium Penata Futures Makassar +62 815 2417 8898 . Most investors sentiment unfortunately involves the Amiruddin. The bears are still in control. S. The information conveyed in the major candlestick signals is the visual depiction of investor sentiment. The first thing an investor should learn is the basics of why prices move. Learning how the stock market works for novices involves controlling one's emotions. Being able to correctly analyze what these emotions are doing at specific points of a trend becomes a valuable tool for successful investing Learning how the stock market works for novices is an endeavor that most investors never master.Candlestick Charts Provide Profitable Swing Trades 3. This creates a small body with a large lower shadow. especially the 12 major signals. The long lower shadow now has the bears questioning whether the decline is still intact.

One of the most important facets for learning how a stock market works for novices is knowing how to put the probabilities in your favor. Learning how the stock market works for novices is an educational process.Candlestick Charts Provide Profitable Swing Trades extremes of human emotions. Understanding the investment psychology that creates each signal is an important element for understanding how professional investors think. S. This may be stating the obvious. the utilization of candlestick signals is being done by a very small percentage of the investment population. The Hanging Man produces some very important attributes when analyzing a potential reversal. However. Amiruddin. Learn how to use a Hanging Man signal correctly. Investor psychology produces reoccurring thought processes as investors go through different stresses of a price trend. The major signals are created by the aspects of human emotions being put into trading decisions. It is considered one of the 12 major signals. Hundreds of years of observations have resulted in reversal signals that are easy to identify. Use the major signals to start profiting from your investment decisions immediately. fear and greed.Kom Financial Planner / Fund Manager PT. The 12 major signals are a very important tool when learning how to play the stock market. The probabilities of being in a correct trade when utilizing this signal becomes extremely high. The results of simple visual analysis permits an investor to take advantage of high probability situations. The candlestick signals create a format that does just that. Learning how the stock market works for novices should be made is simple as possible. The information incorporated into a major candlestick signal provides a huge advantage for those investors just learning how to play the stock market. Millennium Penata Futures Makassar +62 815 2417 8898 . it is very important to find indicators that have a high probability of producing profits and a low probability of producing losses. When learning how the stock market works for novices.

The price opens higher but starts to move lower. Millennium Penata Futures Makassar +62 815 2417 8898 . 2. A gap up from the previous days close sets up for a stronger reversal move provided the day after the Hanging Man signal trades lower. Large volume on the signal day increases the chances that a blowoff day has occurred although it is not a necessity. 3. The bears take control. 3.Candlestick Charts Provide Profitable Swing Trades HANGING MAN Description The Hanging Man is also comprised of one candle. a gap down with a lower close. Signal Enhancements 1. The following day needs to confirm the Hanging Man signal with a black candle or better yet. The longer the lower shadow. Pattern Psychology After a strong up-trend has been in effect. There should be no upper shadow or a very small upper shadow. The upper shadow should be at least two times the length of the body. S. Criteria 1. the atmosphere is bullish. 2. The Japanese named this pattern because it looks like a head with the feet dangling down. 4. The color of the body is not important although a black body should have slightly more bearish implications. It is found at the top of an up trend. The real body is at the upper end of the trading range.Kom Financial Planner / Fund Manager PT. the higher the potential of a reversal occurring. It is easily identified by the presence of a small body with a shadow at least two times greater than the body. But before the end Amiruddin.

it has probably been well positioned into accounts before the general public is made aware of the recommendation. The candlestick signals produce high probability situations. When identifying the Hanging Man signal under the correct conditions. being able to put all the probabilities in ones favor is very important. the bulls step in and take the price back up to the higher end of the trading range. When will an uptrend reverse? When indications start appearing that demonstrate that the sellers are starting to take control! The Hanging Man signal provides the elements that indicate the sellers stepping into a trend. S.Candlestick Charts Provide Profitable Swing Trades of the day. the evidence of the selling was apparent. provides the information needed for identifying the possibility of a trend reversal. creating a small body for the day. This could indicate that the bulls still have control if analyzing a Western bar chart. Amiruddin. the long lower shadow represents that sellers had started stepping in at these levels. The dream of most investors is to find the stock market tips that are going to make them wealthy. A lower open or a black candle the next day reinforces the fact that selling is going on. The information is usually relatively old by the time it reaches the ordinary investor. Unfortunately. Millennium Penata Futures Makassar +62 815 2417 8898 . Stock market tips are usually the demise of most investors. with stochastics in the overbought conditions. Use this information to your advantage.Kom Financial Planner / Fund Manager PT. However. If the stock market tips are coming from an acclaimed guru of a stock market. at the top of an uptrend. Consider the factors that surround stock market tips. Even though the bulls may have been able to keep the price positive by the end of the day. that does not happen. When learning to play the stock market. Depending upon stock market tips will lead most investors into a demoralizing method of investing.

If that particular investment situation does not perform as expected. PIERCING PATTERN Amiruddin. They do not have a viable investment strategy. Investing involves implementing a program where an investor can continue to improve return results. Millennium Penata Futures Makassar +62 815 2417 8898 . Having this knowledge makes investment programs very easy to implement. S. Establishing a position based upon one of the major candlestick signals allows an investor to evaluate when to get into a position and when to get out of a position. If the statistical results of the major candlestick signals were not proven. Most stock market tips emphasize getting into the position as quickly as possible. As demonstrated in the piercing signal. Candlestick signals provide the format for establishing consistent investment returns. Candlestick signals. Whatever great things are going to happen in the stock price are going to happen soon. The psychology built into a major signal is simple common sense investment philosophy.Kom Financial Planner / Fund Manager PT. The signals are the result of many centuries of observations. the Japanese Rice traders have a high expectation of what the result should be. on the other hand. The major problem that comes from putting funds into everybody's stock market tips is very simple to understand. the investor is right back where they started. we would not be looking at them today. are based upon high probability situations.Candlestick Charts Provide Profitable Swing Trades What you do when executing stock market tips? That should be the first question. Stock market tips are not representative of an intelligent investment strategy.

The downtrend has been evident for a good period. The greater the gap down from the previous days close. 3. The second candle is formed by opening below the low of the previous day. Signal Enhancements 1. the more forceful the reversal. The white candle closes more than halfway up the black candle. 2. The higher the white candle closes into the black candle. 2. 4. a continuation of the existing trend. the stronger the Amiruddin.Kom Financial Planner / Fund Manager PT.Candlestick Charts Provide Profitable Swing Trades Description The Piercing Pattern is composed of a two-candle formation in a downtrending market. A long black candle occurs at the end of the trend. The second day opens lower than the trading of the prior day. S. the more pronounced the reversal. The body of the first candle is black. near or at the high for the day Criteria 1. It closes more than midway up the black candle. Millennium Penata Futures Makassar +62 815 2417 8898 . The longer the black candle and the white candle. 3. The first candle is black. the body of the second candle is white.

The prices gap down. They finish near the high of the day. More buying the next day will confirm the move. The move has almost negated the price decline of the previous day. This now has the bears concerned. where you are in the food chain.Kom Financial Planner / Fund Manager PT. Being able to utilize information that has been used successfully in the past is a much more viable investment strategy than taking shots in the dark. the atmosphere is bearish. Millennium Penata Futures Makassar +62 815 2417 8898 . However. Technical analysis courses are usually directed towards providing numerous analytical techniques. The bears may even push the prices down further. many of these techniques are not crucial for pinpointing investment information.Candlestick Charts Provide Profitable Swing Trades reversal. before the end of the day. Large volume during these two trading days is a significant confirmation. S. the bulls step in and dramatically turn prices around. Most technical analysis courses instruct investors on watching indicators that other investors usually Amiruddin. or you one of the masses that feed into a frenzy and allow the smart money to make the profits? Technical analysis courses should utilize the candlestick signals Technical analysis courses usually educate investors with masses of amounts of information. Are you one of those privileged few that gets top-notch pertinent information on a timely manner. Unfortunately. when you are given privileged information about stock market tips. Pattern Psychology After a strong downtrend has been in effect. Keep in mind. 4. Fear becomes more predominant.

The benefit of utilizing candlestick signals is being able to instantly evaluate what investor sentiment is doing at those levels that everybody else is watching. DARK CLOUD COVER Amiruddin.Kom Financial Planner / Fund Manager PT. They can get in before the rest of the technical investors get in. The 12 major candlestick signals provide an immense amount of technical information. The candlestick signals should be the basis of an investors analytical toolbox. the candlestick investor has the advantage of visually seeing the confirmation immediately of that level. The information that is built into candlestick signals reveal immediately what investment sentiment is doing.Candlestick Charts Provide Profitable Swing Trades watch. The information that is conveyed in each one of the signals provides insights into price trends not found in most technical analysis courses. Learn each of the major signals . Click here to view Intelyze training course. It is name because it looks like a dark cloud over a nice bright sunny uptrend. Other investors may require confirmation that comes in the form of additional buying. Learning the stock market becomes much easier when utilizing the correct analytical tools. An investor that is planning to take technical analysis courses should learn candlestick signals before hand. That is a benefit to the candlestick investor. This knowledge will make any technical analysis courses much easier to comprehend. Millennium Penata Futures Makassar +62 815 2417 8898 . a level that many other investors are watching. S. If a candlestick buy signal occurs right on a major technical level. Applying the candlestick information to any information learned in technical and analysis courses will dramatically speed the positive results to investors accounts. There are many good technical analysis courses available. The Dark Cloud signal is a signal that tells an obvious reversal of a trend.

The black candle closes more than half-way down the white candle. the more pronounced the Amiruddin. 2. The longer the white candle and the black candle. S. the more convincing the reversal. Millennium Penata Futures Makassar +62 815 2417 8898 . The first day of the pattern is a long white candle at the top end of a trend. the further down the white candle. Remember that a close at or below the previous day’s open turns this pattern into a Bearish Engulfing pattern. 4. The body of the first candle is white. 3. the more forceful the reversal. The up-trend has been evident for a good period. The second day’s open is higher that the high of the previous day. It closes at least one-half way down the previous day candle. A higher the gap up from the previous days close.Kom Financial Planner / Fund Manager PT. The second day opens higher than the trading of the prior day. 2. Kabuse means to get covered or to hang over. the body of the second candle is black. Signal Enhancements 1. Criteria 1. A long white candle occurs at the top of the trend.Candlestick Charts Provide Profitable Swing Trades Description The dark Cloud Cover is the bearish counterpart to the Piercing pattern.

the stronger the reversal. Large volume during these two trading days is a significant confirmation Pattern Psychology After a strong up-trend has been in effect. below the open of the previous day.A High Profit Candlestick Signal. The biggest deterrent for many investors trying to learn the candlestick signals is a large number of signals.Candlestick Charts Provide Profitable Swing Trades reversal. Exuberance sets in. There are approximately 50 to 60 signals in the Candlestick signal universe. and understanding how those signals are formed. The Harami . It finally closes at or near the lows for the day. The bears start to show up and push the price back down. The close has negated most of the previous days gains. Mastering Candlestick analysis can be done very easily by learning the 10 major signals. The lower the black candle closes into the white candle.Kom Financial Planner / Fund Manager PT. The Bearish Engulfing pattern has slightly stronger bearish implications. with a stop being the high of the black candle day. Millennium Penata Futures Makassar +62 815 2417 8898 . Knowing the signals. 4. provide investors with a tremendous insight into what goes Amiruddin. S. Notice that if the Dark Cloud Cover were to close lower. it becomes a Bearish Engulfing pattern. Most investors complain that there are too many to learn. the atmosphere is bullish. This signal makes for a good short. They gap the price up. The bulls are now concerned. They obviously see that the uptrend may have stopped. Stocks & Commodities Magazine The Harami is one of the major candlestick signals in Japanese Candlestick analysis. 3.

In Japanese. Millennium Penata Futures Makassar +62 815 2417 8898 .Kom Financial Planner / Fund Manager PT. Most signals do not occur often enough to use mental energy for identifying them. Once the trading came near the 200-day moving average. This is based upon hundreds of years of actual observations by Japanese rice traders. All the candlestick signals do not need to be memorized. Simple logic tells us that if these signals did not work. The Harami is considered one of the major signals. they would not be here for us to view after centuries of use. Harami means pregnant woman. the Doji/Harami being confirmed with a gap- Amiruddin. the white candle is her belly sticking out. is more effective when a Doji is part of the two day Harami signal. as seen in the Nasdaq chart. The Bullish Harami is a two formation pattern. A Harami at an important support level. the black candle is the woman's body.Candlestick Charts Provide Profitable Swing Trades on an investor sentiment at reversal areas in a trend. The first formation is usually a large black candle appearing at the end of a downtrend. The 10 major signals will produce more investment opportunities than most investors will require. The end of a downtrend is represented by stochastics being in the oversold area. As you see in the illustration. S. Being able to identify the major signals and understand the investor sentiment that created those signals allows an investor to project market reversals with a high degree of accuracy. The Bullish Harami is formed by the second candle opening above the previous day's close and closing below the previous day's open.

the second body is smaller. The body of the first candle is the same color as the current trend. The pattern is composed of a two candle formation in a down-trending market. S.Candlestick Charts Provide Profitable Swing Trades up the next day becomes a very high probability projection that the trend has reversed. Millennium Penata Futures Makassar +62 815 2417 8898 . It's presence indicates that the trend is over. Amiruddin. The open and the close occur inside the open and the close of the previous day. The first body of the pattern is a long body.Kom Financial Planner / Fund Manager PT. Exerpt from the book “Profitable Candlestick Trading” Description The Harami is an often seen formation.

further confirmation is required to indicate that the trend is now moving up. is usually white. For a reversal signal. Millennium Penata Futures Makassar +62 815 2417 8898 . 2. The body of the first candle is black.Candlestick Charts Provide Profitable Swing Trades The Japanese definition for Harami is pregnant woman or body within. The second day opens higher than the close of the previous day and closes lower than the open of the prior day. The first candle is black. just the body needs to remain in the previous day's body. Unlike the Western “Inside Day”. The location and size of the second candle will influence the magnitude of the reversal. the body of the second candle is white. a continuation of the existing trend. S. 5. the little belly sticking out. Criteria 1. The second candle. Signal Enhancements 1. The downtrend has been evident for a good period.Kom Financial Planner / Fund Manager PT. A long black candle occurs at the end of the trend. 3. where as the “Inside Day” requires both the body and the shadows to remain inside the previous day's body. Amiruddin. The longer the black candle and the white candle. 4. the more forceful the reversal. but that is not always the case (see Homing Pigeon).

the bulls open the price a higher than the previous close. In this way. the up words trend will be moderately strong. A Harami can be additionally determined if it appears at a significant technical Amiruddin. Usually the volume is above the recent norm due to the unwinding of short positions. S. As far as a trend reversal. This is enough support to have the short sellers take notice that the trend has been violated. The short's get concerned and start covering.Candlestick Charts Provide Profitable Swing Trades 2. If the Harami closes midway into the previous black candle. a Harami can act as a barometer for the buying sentiment in the new uptrend. Millennium Penata Futures Makassar +62 815 2417 8898 . the trajectory of the new uptrend may be very flat or slow.Kom Financial Planner / Fund Manager PT. if a Harami opens and closes at the very low end of the previous day's black candle. Pattern Psychology After a strong down-trend has been in effect and after a selling day. the Harami has excellent capabilities of indicating how strong the new trend to the up side will be. The higher the white candle closes up on the black candle. the more convincing that a reversal has occurred despite the size of the white candle. If the Harami closes near the top of the previous day's black candle. For example. A strong day after that would convince everybody that the trend was reversing. The price finishes higher for the day. the new uptrend may be very strong. End of excerpt The significance of a Harami is that it tells us that the selling has stopped.

This essentially tells us that the buying has stopped. After an uptrend and the stochastics are in the overbought area. The Bearish Harami is exactly opposite the Bullish Harami. there will be one last white candle. S.Candlestick Charts Provide Profitable Swing Trades level such as a trend line or a moving average line. Amiruddin. witnessing a Harami that is formation in an oversold condition becomes much more significant if it is also forming on a 50-day moving average or a 200-day moving average.Kom Financial Planner / Fund Manager PT. The following day opens below the previous day's close and closes above the previous day's open. The candlestick analyst can profit immediately. Confirmation is seeing the next day open weaker. The Candlestick signal creates an immediate buy point whereas other technical analysis may need additional time to confirm. This will form a black candle inside the previous day's white candle. Millennium Penata Futures Makassar +62 815 2417 8898 . This becomes instant verification that what most western technical analysis is using for a possible support level is becoming instantly verified by a Candlestick signal. For example.

S.Candlestick Charts Provide Profitable Swing Trades Notice the Bearish Harami's in the Crude Oil chart. every time the price would push above the $40. This analysis was prompted by Crude Oil going above $40. the Bearish Harami will indicate the magnitude of the new downtrend by where it closes in the previous day's candle. What is the smart money doing? You do not need extensive research team to delve into what is happening in each industry.00 per barrel price.00 a barrel for the first time in decades.00 per barrel. the Harami's revealed that the sellers were stepping in. In late May. The signals tell what is the actual investor sentiment. stock or commodity. the “experts” were projecting that oil prices could go to $60. A very small candle at the top end of the previous day's white candle would indicate every slow downtrend whereas they close at the lower end of the previous day's white Amiruddin. However.Kom Financial Planner / Fund Manager PT. Just like the Bullish Harami. Millennium Penata Futures Makassar +62 815 2417 8898 .

if an investor merely learns the 12 major candlestick signals. To simplify the process. The candlestick signals provide an expected result. How to Trade the Bullish Harami. Most stock market strategies involve complicated approaches and formulas. Candlestick analysis provides a platform for making stock market strategies very simple to implement. They also convey to an investor when the investor sentiment is not working properly. The results. Successful stock market strategies involve investment practices that can be accounted for and constantly improve. are fairly predictable. Taking advantage of the investor knowledge incorporated into candlestick signals allows an investor to eliminate bad habits. The Japanese rice traders established the statistical analysis to warrant the signals to still be in effect after centuries of use. from witnessing a Harami. losses can be cut short . Most stock market strategies pay little attention to procedures on losing trades. Use that information to your advantage.Candlestick Charts Provide Profitable Swing Trades candle would indicate that the selling pressure is going to be much stronger. the better the opportunity is to profit from the signal. most investors put money into the markets without any concern for stock market strategies.Kom Financial Planner / Fund Manager PT. Candlestick signals provide the information that can put investors on the right track from the beginning. Amiruddin. Understanding what the Harami signal is representing. Stock market strategies should involve investment programs that put the probabilities of being in a correct trade in an investor's favor. the correct investor habits will be much easier to implement. The 12 major candlestick signals provide a framework for establishing a high probability trades. it also delays the process for how to learn to trade the stock market correctly. When they do not occur. Stock market strategies should be incorporated into an investors learning process from the very beginning. Unfortunately. Millennium Penata Futures Makassar +62 815 2417 8898 . Funds can then be moved on to high probability situations. S. This not only skews many investors investment perceptions.

Upon witnessing a bullish Harami at the end of a downtrend. Criteria 1. The Bullish Harami is an example of visual statistic analysis. The location and size of the second candle will influence the magnitude of the reversal. S. The body of the first candle is the same color as the current trend. The body of the first candle is black. the little belly sticking out. a continuation of the existing trend. This major signal becomes a vital information packed analytical tool. Amiruddin. Millennium Penata Futures Makassar +62 815 2417 8898 . an investor has a good idea of what to expect. The second candle. but that is not always the case. The open and the close occur inside the open and the close of the previous day.Kom Financial Planner / Fund Manager PT. The first candle is black. HARAMI BULLISH HARAMI Description The Harami is an often seen formation The pattern is composed of a two candle formation in a down-trending market. The Japanese definition for Harami is pregnant woman or body within. Knowing the investor sentiment that developed the signals provides a much better insight for investors to determine successful trade situations. the second body is smaller.Candlestick Charts Provide Profitable Swing Trades Utilizing the 12 major signals establishes a knowledge base for what should happen in the future. is usually white. the body of the second candle is white. It’s presence indicates that the trend is over. The first body of the pattern is a long body.

The second day opens higher than the close of the previous day and closes lower than the open of the prior day. For a reversal signal. This is enough support to have the short sellers take notice that the trend has been violated. Unlike the Western "Inside Day". Millennium Penata Futures Makassar +62 815 2417 8898 . Amiruddin. further confirmation is required to indicate that the trend is now moving up.Candlestick Charts Provide Profitable Swing Trades 2. The longer the black candle and the white candle. 2. A strong day the next day would convince everybody that the trend was reversing. 5. 3. S. 4. the more forceful the reversal. The downtrend has been evident for a good period. where as the "Inside Day" requires both the body and the shadows to remain inside the previous day’s body. the bulls open the price a higher than the previous close. the more convincing that a reversal has occurred despite the size of the white candle. just the body needs to remain in the previous day’s body. Usually the volume is above the recent norm due to the unwinding of short positions. The price finishes higher for the day. A long black candle occurs at the end of the trend. Signal Enhancements 1. The higher the white candle closes up on the black candle. The short’s get concerned and start covering. Pattern Psychology After a strong down-trend has been in effect and after a selling day.Kom Financial Planner / Fund Manager PT.

The facets of supply and demand do not immediately change commodity prices. Whereas stock analysis involves a multitude of external factors that can affect a price. Of these. The perception of what supply and demand forces may be doing is what changes commodity prices. the 50 or 60 candlestick signals became recognized. Commodity trading principles are based upon supply and demand. commodity trading principles relied mostly upon the perception of supply and demand.Kom Financial Planner / Fund Manager PT. Amiruddin. Millennium Penata Futures Makassar +62 815 2417 8898 . S. Learning these signals allows an investor to gain valuable insights into investor sentiment. Over the past four centuries.Candlestick Charts Provide Profitable Swing Trades Commodity Trading with Candlestick Signals and the Bearish Harami Commodity trading principles are the basic elements incorporated in the candlestick signals. 400 years of investor observations occurred while trading Rice. Understanding the factors that go into a candlestick signal formation makes understanding commodity trading much easier to comprehend. Commodity trading principles are easier to analyze than stock trades. Candlestick signals are the graphic depiction of those reversals in investor sentiment. 12 signals were found to occur a majority of the time. Understanding the investor psychology that formed the major signals is the basis for fully understanding commodity trading principles. This creates a much smoother trend analysis than stock prices. Their appearance also indicated extremely high probability reversal situations. Candlestick signals were developed on the most basic commodity trading principles. This is derived from one simple factor. one of the most basic commodities. These 12 signals are now considered the major candlestick signals.

Candlestick Charts Provide Profitable Swing Trades The Bearish Harami is one of the major signals that exhibits common sense into graphic depiction. The body of the first candle is white. The uptrend has been apparent. Criteria 1. A long white candle occurs at the end of the trend. S. The elements that create a Bearish Harami produce clear insights into what was going on in investor minds at a reversal. The body of the first candle is the same color as the current trend. The open and the close occur inside the open and the close of the previous day. 3. Millennium Penata Futures Makassar +62 815 2417 8898 . The first body of the pattern is a long body. Amiruddin. Its presence indicates that the trend is over. the second body is smaller. The pattern is composed of a two-candle formation. BEARISH HARAMI Description The Bearish Harami is the exact opposite of the Bullish Harami. The second day opens lower than the close of the previous day and closes higher than the open of the prior day. the body of the second candle is black. 2.Kom Financial Planner / Fund Manager PT. Candlestick analysis provides a clear understanding of what happens to investor sentiment at the reversal areas.

Pattern Psychology After a strong uptrend has been in effect and after a long white candle day. Millennium Penata Futures Makassar +62 815 2417 8898 . and then come back after a few days to reinvest once the position is moving. the more forceful the reversal. The next day should show weakness. the bears open the price lower than the previous close. If all of your investment funds are being fully used. Stock Market Advice for Trading The Morning Star Signal Amiruddin. The price finishes lower for the day.Candlestick Charts Provide Profitable Swing Trades 4. For a reversal signal. The bulls are now concerned as the price closes lower. Volume increases due to the profit taking and the addition of short sales.Kom Financial Planner / Fund Manager PT. An aggressive trader may want to move those funds to a better trade. confirmation is needed. It is becoming evident that the trend has been violated. Having insight ito the effect of Haramis provides an opportunity to maximize returns. The longer the white candle and the black candle. despite the size of the black candle. 2. The longs get concerned and start profit taking. a Harami may reveal that one of the positions has stalled for a few days. The lower the black candle closes down on the white candle. S. Signal Enhancements 1. the more convincing that a reversal has occurred. A weak day after that would convince everybody that the trend was reversing.

It is formed after an obvious downtrend. diversify. What good is stock market advice if you still don't know how to read a stock chart? The Candlestick Forum provides practical stock market advice by continued "How To Trade" articles for identifying specific candlestick charts. The following day gaps down. it foretells that brighter things . This is the star of the formation. the magnitude of the trading range remains small for the day. usually one of the fear-induces days at the bottom of a long decline. and limitless tid-bits but they do not teach you anything about trading.sunrise. is about to occur. This article will help you to identify The Morning Star signal and the trading criteria used for successful implementation. S. The optimal Morning Star signal would have a gap before and after the star day. Amiruddin. MORNING STAR Description The Morning Star is a bottom reversal signal. We hope these articles are helping you along your way to successful stock market trading. However. There is sage stock market advice like.Kom Financial Planner / Fund Manager PT. use cost averaging. Be sure to join Stephen Bigalow live over the internet for his free Thursday evening Chat Sessions. It is made by a long black body. Millennium Penata Futures Makassar +62 815 2417 8898 . The third day is a white candle day. And represents the fact that the bulls have now stepped in and seized control. Like the planet Mercury. Don't try to time the market.Candlestick Charts Provide Profitable Swing Trades Stock market advice is plentiful over the internet. or that prices are going to go higher. the morning star.

A Gap between the first day and the second day adds to the probability that a reversal is occurring. The body of the first candle is black. Criteria 1.Candlestick Charts Provide Profitable Swing Trades The make up of the star. the more forceful the reversal. That candle should close at least halfway up the black candle. That candle should consist of a closing that is at least halfway up the black candle of two days prior. indicates the strength of the reversal. continuing the current trend. The longer the black candle and the white candle. The second candle is an indecision formation. The more indecision that the star day illustrates. The downtrend has been apparent.Kom Financial Planner / Fund Manager PT. bulls are stepping in at the low prices. The third day shows evidence that the bulls have stepped in. 2. The important factor is to witness the confirmation of the bulls taking over the next day. When the price starts Amiruddin. The magnitude. can consist of a number of candle formations. that the third day comes up into the black candle of the first day. 2. 3. it shows that the ownership has dramatically changed hands. an indecision formation. The next day as the selling continues. 3. Millennium Penata Futures Makassar +62 815 2417 8898 . Pattern Psychology A strong downtrend has been in effect. S. 5. If there is big volume during these days. The sellers start getting panicky. the better probabilities that a reversal will occur. 4. Signal Enhancements 1. The third day the bears start to lose conviction as the bull increase their buying. There is a large sell-off day. The second day does not have a large trading range. A gap before and after the star day is even more desirable.

Candlestick Charts Provide Profitable Swing Trades moving back into the trading range of the first day. S. The major benefit of Candlestick signals is that they are very easy to learn and identify. A Japanese Candlestick reversal signal is a visual identification of a change in investor sentiment. the sellers diminish and the buyers seize control. Of the 50 or 60 Candlestick signals. Stocks & Commodities Magazine The major Candlestick reversal signals are very illuminating. They are hundreds of years of visual observations revealing high probabilities of a reversal occurring. Not to overstate the obvious. but if Candlestick signals didn’t work. we would not be looking at them today. You do not have to do extensive fundamental analysis. there are 10 major signals that occur at the reversals the majority of the time. symmetrical candlestick reversal patterns.A Powerful Candlestick Reversal Signal. You do not need to learn formulas. Amiruddin.Kom Financial Planner / Fund Manager PT. The Japanese rice traders that they used candlestick signals became enormously wealthy. Millennium Penata Futures Makassar +62 815 2417 8898 . The Morning Star signal is one of the most clear. The Morning Star .

The third day is a white candle day. usually one produced of the fear induced at the bottom of a long decline. the magnitude of the trading range remains small for the day. Amiruddin. Millennium Penata Futures Makassar +62 815 2417 8898 .Candlestick Charts Provide Profitable Swing Trades The Japanese rice traders described it as the planet Mercury. however a Doji or a spinning top is usually the predominant formation in a Morning Star signal. meaning that prices are going to go higher. It foretells that brighter things. This produces an indecision type – day. That candle should consist of a closing more than half-way up the black candle of two days prior. an indecision formation. can consist of a number of candle formations. The following day gaps down.Kom Financial Planner / Fund Manager PT. However. The important factor is to witness the confirmation of the bulls taking control the next day. Identifying the Morning Star signal is relatively easy. The three day signal consists of a long black body. the morning star. S. is about to occur. The optimal Morning Star signal would have a gap before and after the star day. It is visually apparent to the eye. There are some very simple parameters that can enhance the Morning Star signal’s probabilities of creating a reversal. sunrise. It is formed after an obvious downtrend. The white candle represents the fact that the bulls have now stepped in and seized control. The make up of the star.

Using a simple indicator such as stochastics.Kom Financial Planner / Fund Manager PT. As seen in the daily Dow chart. This demonstrates a more severe change in investor sentiment. in the 20 area or below. 4. Amiruddin. Whether doing a longterm evaluation on a monthly Dow chart or a one minute chart trading the eminis. The probability of a Morning Star signal reversing a trend becomes extremely high when found in oversold conditions. 2. A gap before and after the star day is even more desirable. reveals more potential in the strength of the reversal. The more indecision that the star day illustrates. represents an oversold condition. Being able to analyze the direction of a DOW l increases the probabilities of being a correct trade when analyzing individual stock charts. 3. the more forceful the reversal. A gap between the first day and the second day adds to the probability that a reversal is occurring. Millennium Penata Futures Makassar +62 815 2417 8898 . Candlestick analysis can be used in all trading entities.Candlestick Charts Provide Profitable Swing Trades 1. S.The most important element of the signal is the magnitude of the white candle’s close during the third day. the signals working just as effectively for revealing change in investor sentiment during that time frame. The higher the close of the third day. the better probabilities that a reversal will occur. such as a Doji signal. coming up past the middle point of the black candle of the first day. the Morning Star signals revealed when the Dow established a bottom. The longer the black candle and the white candle.

Then two Morning Star signals appeared a week later to start the next rally again in the Dow Jones Averages. In both cases. a three day morning Star signal appeared. Millennium Penata Futures Makassar +62 815 2417 8898 . S. buying the AVI Biopharma Inc. it becomes very clear to start buying stocks that have produced good candlestick “buy” signals. chart Amiruddin.Kom Financial Planner / Fund Manager PT. Note point A. the Dow index reversed after Morning Star signals. For example.Candlestick Charts Provide Profitable Swing Trades In July and August 2004. when the stochastics were on the oversold condition. Being able to evaluate that the market is moving up in general allows the candlestick investor to identify and establish long positions more aggressively at the bottom of tread reversals.

Millennium Penata Futures Makassar +62 815 2417 8898 . This is using the same successful analysis that has been used for centuries. Scanning software makes finding the signals very easy.Candlestick Charts Provide Profitable Swing Trades as it produced a Morning Star signal. would have created a very large percentage return. just as the markets were bottoming. This is not rocket science. Candlestick signals occur in the markets every single day.Kom Financial Planner / Fund Manager PT. the probabilities of being in a successful trade is very high. When you see a Morning Star occurring in oversold condition. Stock Market Information on How to Trade the Shooting Star Signal Amiruddin. They can find the best candlestick trade in less than 10 minutes every day. S. There we willcan be a very simple trading parameter.

It is easily identified by the presence of a small body with a shadow at least two times greater than the body. We hope you enjoy the following training information for the Shooting Star Signal. For additional articles on trading individual candlestick signals please begin with Candlestick Images and Explanations. It is found at the top Amiruddin. The biggest decision is how to go about selecting which materials to start reading. Millennium Penata Futures Makassar +62 815 2417 8898 . Do you want to learn about day-trading? Are you more interested in learning options. or trading commodities? Maybe you want to be better educated to discuss your portfolio with your Broker. whether you are researching the internet or the book stores. Be prepared to be flooded with material covering stock market information. but He Trades For A Living! The same information he teaches throughout this website.Candlestick Charts Provide Profitable Swing Trades There is no shortage of stock market information. is the same information he uses every day to make his own trading decisions for his personal portfolio and for his professional Hedge Fund. The Shooting Star Description The Shooting Star is comprised of one candle. Stephen Bigalow is not only the author of 'High Profit Candlestick Patterns'. and in all his training products. S. How do you know if the stock market information you are reviewing was written by someone qualified in the subject? Perhaps you will allow us to narrow the field a bit. and 'Profitable Candlestick Trading'. He contributes new articles each week to aid other investors on the advantage of combining candlestick signals and how to read candlestick charts.Kom Financial Planner / Fund Manager PT.

the bears step in and take the price back down to the lower end of the trading range. S. Criteria 1. This could indicate that the bulls still have control if analyzing a Western bar chart. 3. The bulls are in control. The longer the upper shadow. the higher the potential of a reversal occurring. The real body is at the lower end of the trading range. The day after the Shooting Star signal opens lower. 3. However. The color of the body is not important although a black body should have slightly more bearish implications. the atmosphere is bullish. A gap up from the previous day's close sets up for a stronger reversal move provided. 2. The price opens and trades higher. Millennium Penata Futures Makassar +62 815 2417 8898 .Kom Financial Planner / Fund Manager PT. Pattern Psychology After a strong up-trend has been in effect. a gap down with a lower close. But before the end of the day. The upper shadow should be at least two times the length of the body.Candlestick Charts Provide Profitable Swing Trades of an uptrend. Large volume on the Shooting Star day increases the chances that a blow-off day has occurred although it is not a necessity. 4. There should be no lower shadow or a very small lower shadow. the long upper shadow represents that sellers had started Amiruddin. creating a small body for the day. Signal Enhancements 1. The following day needs to confirm the Shooting Star signal with a black candle or better yet. 2. 4. The Japanese named this pattern because it looks like a shooting star falling from the sky with the tail trailing it.

. come join us and you will find the investing stock market advice you have been looking for. the trading criteria with signal enhancements and the pattern psychology behind the signal.Kom Financial Planner / Fund Manager PT.000 pages for your review. and we are no exception.Candlestick Charts Provide Profitable Swing Trades stepping in at these levels. Now for the free advice we promised. But. We back up our promise to provide free stock market advice.700. S. the evidence of the selling was apparent. A lower open or a black candle the next day reinforces the fact that selling is going on. Absolutely FREE. Millennium Penata Futures Makassar +62 815 2417 8898 . We hope you are following our 'Candlestick Images and Explanations'. Where do you begin? Do you really want to plow through all those pages and be bombarded with "buy this" or "register here for investing stock market advice"? Internet sites are a business. this returns 56. EVENING STAR ( Sankawa Yoi No Myojyo ) Amiruddin. Each week we add another candlestick signal where we provide a graphic illustration of candlestick chart signals with descriptions for recognizing the candlestick signal... no registration needed. Investing stock market advice using the Evening Star Candlestick signal So you want investing stock market advice and naturally you begin with a 'Google' search. but what happened to all the great 'free' material the internet is supposed to provide? The Candlestickforum continues it's commitment to provide free stock market advice. Every Thursday evening Stephen Bigalow presents a live stock chat session over the internet. Even though the bulls may have been able to keep the price positive by the end of the day.

2. Signal Enhancements 1. Like the planet Venice . Amiruddin. The more indecision that the star day illustrates. 3. The second candle is an indecision formation. continuing the current trend. The third day is a black candle day and represents the fact that the bears have now seized control. The body of the first candle is white.Kom Financial Planner / Fund Manager PT. Again.Candlestick Charts Provide Profitable Swing Trades Description The Evening Star pattern is a top reversal signal. It is made by a long white body occurring at the end of an uptrend. It is formed after an obvious uptrend. the better probabilities that a reversal will occur. the evening star. The following day gaps up. this is the star of the formation. The longer the white candle and the black candle. usually when the confidence has finally built up. the more forceful the reversal. The third day shows evidence that the bears have stepped in. That candle should close at least halfway down the white candle. Criteria 1. Millennium Penata Futures Makassar +62 815 2417 8898 . The uptrend has been apparent. That candle should consist of a closing that is at least halfway down the white candle of two days prior. It is exactly the opposite of the Morning Star signal. yet the trading range remains small for the day. The optimal Evening Star signal would have a gap before and after the star day.. 2. S. it foretells that darkness is about to set or that prices are going to go lower.

Millennium Penata Futures Makassar +62 815 2417 8898 . indicates the strength of the reversal. If there is big volume during these days. A gap between the first day and the second day adds to the probability that a reversal is occurring. it shows that the ownership has dramatically changed hands. requires being able to see exactly what the trends are doing over a 3 to 10 day period. Interpreting what the signals are telling you is very easy. or long Amiruddin. The bulls get concerned and the bears start taking over. Whether swing trading. Understanding what the Candlestick signals are telling you becomes an important factor for making profits and for limiting losses. The third day is a large sell off day. Swing trading. with a short-term outlook. The change of direction is immediately seen in the color of the bodies. day-trading. The next day all the buying is being met with the selling. it has now reached the prices where sellers start taking profits or think the price is fairly valued. The buyers can't imagine anything going wrong. 4. A gap before and after the star day is even more desirable. However. causing for a small trading range. The use of Candlestick's become much more important especially in a market trend that is not showing very much conviction one way or the other.Candlestick Charts Provide Profitable Swing Trades 3.Kom Financial Planner / Fund Manager PT. S. Pattern Psychology A strong uptrend has been in effect. Understanding what the signals are telling you will produces a very accurate format for swing trading as well as all other forms of investing. Swing Trading Refined Using Candlestick Signals! Candlestick signals become important for swing trading. that the third day comes down into the white candle of the first day. they are piling in. The magnitude.

However.Candlestick Charts Provide Profitable Swing Trades term investing. and Friday created a bearish candle in the Dow. The last three days formed an Evening Star signal. the probabilities of being on the correct side of the trade grows dramatically when utilizing the information conveyed in a Candlestick signal. Millennium Penata Futures Makassar +62 815 2417 8898 . two Harami signals indicated that the downtrend had stopped. with the trend apparently bottoming midway between the 50 day moving average in the 200 day moving average. At that time. A true Evening Star signal would be witnessed when the stochastics are in the overbought area. Thursday produced a doji. Amiruddin.As was noted late last week and early this week. S. a quick analysis would have suggested an up move to test either the 20 day moving average or the 50 day moving average. that closed more than halfway down the bullish candle the day prior to the doji.Kom Financial Planner / Fund Manager PT. Market Direction . demonstrating indecision.

But we saw that the selling had stepped back in. the Dow’s pullback had been fairly severe. they are still moving this market up. S. Before the appearance of the two harami's last week. The market action.Candlestick Charts Provide Profitable Swing Trades Even though the Evening Star signal did not occur in overbought area. Very simply stated. there was an opportunity for the Bulls to continue the rally.Kom Financial Planner / Fund Manager PT. now allows us to analyze what Monday's market action could produce. and the stochastics coming out of the oversold area but turning back down. Had we seen a bullish day on Friday. The projection had been that it may test the 200 day moving average down near the 9800 level. After the big sell-off on Friday. the formation still has to be evaluated as to what is the investor sentiment appearing to be at this time. after Thursday's doji. the evaluation of the market trend would have been simple. as seen this past week Amiruddin. Millennium Penata Futures Makassar +62 815 2417 8898 .

and forming a an evening Star signal. after the doji. should now tell us that if we see weakness on Monday. What may have been the correct analysis five days ago may not be the same analysis today.Kom Financial Planner / Fund Manager PT. as described from the excerpt from the book " Profitable Candlestick Trading" is considered one of the major signals. as seen in the market this week. Although it did not occur in overbought situation. Millennium Penata Futures Makassar +62 815 2417 8898 .Candlestick Charts Provide Profitable Swing Trades reveals a mild bounce in a down-trending market. whether it be three days. but that is what using the candlestick signals tell you to do. or three months. It changes the investment strategy from being positioned in the direction of what you " think" the market is going to do to a market strategy based upon what the candlestick signals are indicating the investor sentiment is now. three weeks. The Evening Star signal. Is this a complete change of projections for just a few days ago? Yes. What could have been the possibilities from the market indications a few days ago has been completely altered by what the candlestick signals are telling us now. What looked like could be a test of the 50 day moving average in the Dow just a few days ago. Friday's action. their ego holds them to that analysis versus being willing to alter their analysis when things change. the last weeks bounce may be over and we are now still heading for the 200 day moving average. S. That is the whole premise of using candlestick analysis. it still represents Amiruddin. now has the probabilities reverting back to testing the 200 day moving average if further weakness as seen in the market on Monday. Most investors lose money because once they make an analysis of the market direction.

this is the star of the formation. Criteria 1. It is exactly opposite the Morning Star signal. It is made by a long white body occurring at the end of an uptrend. Amiruddin. it foretells that darkness is about to set or that prices are going to go lower. usually when the confidence has finally built up. It is formed after an obvious uptrend. yet the trading range remains small for the day. The optimal Evening Star signal would have a gap before and after the star day. And represents the fact that the bears have now seized control. EVENING STAR (Sankawa Yoi No Myojyo) Description The Evening Star pattern is a top reversal signal.. Like the planet Venice. The uptrend has been apparent. S. the evening star. That candle should consist of a closing that is at least halfway down the white candle of two days prior. Again. Recognizing the signals gives the candlestick investor a leg up on which way the market may be heading. The following day gaps up.Kom Financial Planner / Fund Manager PT.Candlestick Charts Provide Profitable Swing Trades the there has been a change in investor sentiment compared to three days ago. Millennium Penata Futures Makassar +62 815 2417 8898 . The third day is a black candle day.

The second candle is an indecision formation. That candle should close at least halfway down the white candle.Kom Financial Planner / Fund Manager PT. The magnitude. A gap between the first day and the second day adds to the probability that a reversal is occurring. If there is big volume during these days. they are piling in. 3. The bulls get concerned and the bears start taking over. it has now reached the prices where sellers start taking profits or think the price is fairly valued. 2.Candlestick Charts Provide Profitable Swing Trades 2. The buyers can't imagine anything going wrong. The third day is a large sell-off day. The next day all the buying is being met with the selling. The longer the white candle and the black candle. causing for a small trading range. indicates the strength of the reversal. 3. continuing the current trend. Millennium Penata Futures Makassar +62 815 2417 8898 . Pattern Psychology A strong uptrend has been in effect. that the third day comes down into the white candle of the first day. A gap before and after the star day is even more desirable. The body of the first candle is white. the more forceful the reversal. 4. The change of direction is immediately seen in the color of the bodies. Signal Enhancements 1. it shows that the ownership has dramatically changed hands. S. The third day shows evidence that the bears have stepped in. However. the better probabilities that a reversal will occur. The more indecision that the star day illustrates. Amiruddin.

Kom Financial Planner / Fund Manager PT. Its relevance is magnified when occurring in the overbought or oversold area. It works equally well in both directions. either sitting in cash or shorting the market. Millennium Penata Futures Makassar +62 815 2417 8898 . S. The second candle opens at the same open of Amiruddin.Candlestick Charts Provide Profitable Swing Trades What is the Strongest Candlestick Signal? The Kicker Signal! What is the strongest candlestick signal? The Kicker signal! It demonstrates a severe change an investor sentiment. A good rule of thumb is that if an investor sees a Kicker signal. especially with the stochastics in the overbought area. indicates that we want to be out of our long positions. The first candle opens and moves in the direction of the current trend. KICKER SIGNAL ( Keri Ashi ) Description The Kicker signal is the most powerful signal of all. And that is exactly what we saw happen today in the NASDAQ index. It is formed by two candles. The Bearish Kicker signal. he/she should go long or short depending on whether it is a Bullish Kicker or a Bearish Kicker.

Pattern Psychology The Kicker signal demonstrates a dramatic change in the investor sentiment. The price movement is in opposite directions from the opening price. the more dramatic the price reversal. and heads in the opposite direction of the previous day’s candle. 2. 2. Millennium Penata Futures Makassar +62 815 2417 8898 .Kom Financial Planner / Fund Manager PT. The signal illustrates such a change in the current direction that the new direction will persist with strength for a good while. Signal Enhancements 1. Opening from yesterday’s close to yesterday’s open already is a gap. S. The bodies of the candles are opposite colors. gapping away from the previous day’s open further enhances the reversal. The signal is usually formed by surprise news before or after market hours. 3. The longer the candles. The first day’s open and the second day’s open are the same. The price never retraces into the previous day's trading range.Candlestick Charts Provide Profitable Swing Trades the previous day. Amiruddin. This formation is indicative of a dramatic change in investor sentiment. The candlesticks visually depict the magnitude of the change. However. Something has occurred to violently change the direction of the price. a gap open. Criteria 1. Usually a surprise news item is the cause of this type of move. The trend has no relevance in a Kicker situation. 4.

If the next day prices gap back the other way.Candlestick Charts Provide Profitable Swing Trades There is one caveat to this signal. Crude Oil is now trading at new contract highs. Market Direction – With the NASDAQ producing a Kicker signal to the downside and the Dow in a severe sell-off. Does this mean the turnaround is going to last for a while? The Kicker signal today in the NASDAQ is a very good indication that it will. liquidate the trade immediately. Amiruddin. The fear of much higher oil prices is now affecting the market conditions.50 today. Millennium Penata Futures Makassar +62 815 2417 8898 . This does not happen very often. The Federal Reserve raised interest rates by a quarter of a point yesterday. but when it does. S. then a turnaround the next day. the probabilities point to being short in this market.Kom Financial Planner / Fund Manager PT. It is not unusual to see a rally the same day as the announcement. get out immediately. Crude Oil prices spiked up another $1.

Millennium Penata Futures Makassar +62 815 2417 8898 . The weak signals in the semiconductor stocks. The stochastics in both the NASDAQ and the Dow indicate we should have a few days. Today. As seen in our daily follow-ups. S.Candlestick Charts Provide Profitable Swing Trades The weakness shown by the Kicker signal in the NASDAQ. However. Once again. The semiconductors tried to bounce up in the last couple of days but have now failed. should at least have the NASDAQ test the 50-day moving average. SOX pulled back with a Bearish Engulfing signal to the 50-day moving average with Amiruddin.Kom Financial Planner / Fund Manager PT. the advantage of the Candlestick signals is that they reveal opportune times to get into stocks as well as get out of them. made it clear that the sellers were starting to come back into these stocks. with stochastics in the overbought area. the strength of the Kicker signal could start a downtrend that could test the recent lows. these positions were closed out on the weak open today. to the downside. over the past day or two. at least.

For example. Read the recommendation carefully. This could also lead to a test of the recent lows. Not entering a trade when conditions are not correct will keep your funds from being placed in trades that are not working. they opened lower than Tuesday’s close. In both of these cases. SOX. showing selling from the open Wednesday. would have had us waiting to see if there was any strength. It is important to analyze what the market conditions are when entering a trade. AGI and AFCI. Those funds remain available to be placed in better positions.Candlestick Charts Provide Profitable Swing Trades stochastics in the overbought area starting to turn down. Millennium Penata Futures Makassar +62 815 2417 8898 . S. were recommended but with the caveat of buying on strength.Each day our recommendations include the conditions that should occur before entering a trade. The market conditions. Entry Points .Kom Financial Planner / Fund Manager PT. Semiconductor Index Amiruddin. on Wednesday. Please read all of the stipulations in the recommendations.

Candlestick Charts Provide Profitable Swing Trades The retailing stocks have been acting weak for the past week. This makes the shift much more manageable. Note how the selling came into stocks such as Children’s Palace a little over a week ago. Millennium Penata Futures Makassar +62 815 2417 8898 . S. it is wise to have both long and short positions in the portfolio.Kom Financial Planner / Fund Manager PT. For the specific purpose of being able to shift the portfolio quickly once the trend is revealed coming out of that indecisive period. Amiruddin. This pullback in the market has added to their downside move. During these indecisive periods of the market. The stochastics turning down and seeing consistent selling signals made this a prime candidate as a short position when the market indexes were in an iffy stage.

Working off the premise that the Candlestick signals are the cumulative knowledge of everyone who is buying or selling during a specific time frame. the evaluation of technical trends becomes better formatted when understanding what the signals are telling you.Candlestick Charts Provide Profitable Swing Trades Stock Market Technical Analysis Simplified With Candlestick Signals Stock market technical analysis is dramatically improved when applying Candlestick signals. The effectiveness of Candlestick signals in stock market technical analysis is more clearly evident in the past couple of weeks when experiencing world events such as terrorist attacks.Kom Financial Planner / Fund Manager PT. Amiruddin. Millennium Penata Futures Makassar +62 815 2417 8898 . S.

300 level. As we had advised in our members' morning comments. a simple analysis could be made after hearing the news. Utilizing stock market technical analysis in this manner becomes very simple. This stock market technical analysis. The Candlestick signals indicate what investor sentiment is doing during any particular time frame.Kom Financial Planner / Fund Manager PT. Amiruddin. The previous two weeks had been showing Candlestick bottoming signals. it was a day to hold the long positions until we saw what Candlestick formation was going to occur. What were the market conditions on the morning of the London bombings? The stochastics were in the oversold condition. With this stock market technical analysis in mind. S. Our stock market technical analysis indicated to allow the Candlestick signal of that day dictate what our strategy should be. an event that could dramatically influence investor sentiment. was indicating that investor sentiment was starting to turn bullish once more. Millennium Penata Futures Makassar +62 815 2417 8898 . What should become the investment strategy? Our stock market technical analysis already told as we are in an oversold condition. What was going to be the Candlestick formation that day? The markets immediately sold off that morning. They did so with good strength very early in the day. Knowing that the markets were already in a short-term oversold condition. Prices were already down big early in the day. Our Candlestick signals indicated that buying had been trying to start for the past two weeks. without an extracurricular world event. Two sets of Morning Star signals had formed as stochastics had approached the oversold condition. a trading strategy could be implemented. where the Dow had appeared to hold the 10. upon hearing the news of the London bombings. The candlestick charts clearly identify when signals may occur.Candlestick Charts Provide Profitable Swing Trades Stock market technical analysis using Candlestick analysis allowed for a trading strategy on the morning of the bombings.

Candlestick Charts Provide Profitable Swing Trades Had the day closed at the lower end of the trading range. this shows evidence that the bulls have started to step in. A positive day is required the following day to confirm this signal. The color of the small body is not important but a white candle has slightly more bullish implications than the black candle. Millennium Penata Futures Makassar +62 815 2417 8898 . it would have provided a completely different scenario than the formation of a Hammer signal. It is easily identified by the presence of a small body with a shadow at least two times greater than the body. The Hammer signal revealed that investor sentiment was not in a massive selling mode. This provided the signal to buy aggressively upon seeing more strength the following day. S. Criteria Amiruddin. HAMMERS (Takuri) Description The Hammer is composed of one candle. Found at the bottom of a downtrend.Kom Financial Planner / Fund Manager PT.

Millennium Penata Futures Makassar +62 815 2417 8898 .Kom Financial Planner / Fund Manager PT. Signal Enhancements 1. 2. The price opens and starts to trade lower. The lower shadow should be at least two times the length of the body. 2.Candlestick Charts Provide Profitable Swing Trades 1. This creates a small body with a large lower shadow. The real body is at the upper end of the trading range. This represents that the bears could not maintain control. The long lower shadow now has the bears questioning whether the decline is still intact. 3. Amiruddin. The bears are still in control. The color of the body is not important although a white body should have slightly more bullish implications. the higher the potential of a reversal occurring. 4. Pattern Psychology After a downtrend has been in effect. The following day needs to confirm the Hammer signal with a strong bullish day. A higher open the next day would confirm that the bulls had taken control. They start bringing the price back up towards the top of the trading range. Large volume on the Hammer day increases the chances that a blow off day has occurred. 3. The bulls then step in. There should be no upper shadow or a very small upper shadow. The longer the lower shadow. the atmosphere is very bearish. A gap down from the previous day’s close sets up for a stronger reversal move provided the day after the Hammer signal opens higher. S.

and the S&P 500 showed indecisive trading.The series of Morning Star signals. the stochastics in all of the indexes have now reached the overbought area.Candlestick Charts Provide Profitable Swing Trades Market Direction . However. Both the Dow. It would not be unusual to see some pullback occurring from these levels. The uptrend appears to be intact. S. started to show some toppiness. confirmed with the bullish candle after the London bombing Hammer day. This pullback would be more of a profit-taking process versus a reversal. an option expiration day. The fear of the feds continuing to raise interest rates as well as oil prices in high trading areas has not produced any euphoric buying as of yet.Kom Financial Planner / Fund Manager PT. started the market uptrend. Millennium Penata Futures Makassar +62 815 2417 8898 . the NASDAQ. Amiruddin. This becomes a good indicator that the uptrend should persist. Friday. This was not unexpected on a Friday in the summertime and on an options expiration day.

Kom Financial Planner / Fund Manager PT. would be the time to be taking some profits from this recent rally. would be to analyze which sectors appear to be the next strong movers.Candlestick Charts Provide Profitable Swing Trades If a pullback should start appearing. confirming Friday's Doji signals. S. with the evidence of selling starting on Monday or Tuesday. Weakness. Amiruddin. Millennium Penata Futures Makassar +62 815 2417 8898 . a logical pullback target would be the 50 day and 200 day moving averages. The strategy. after the test of the MA's.

followed by a Bullish Engulfing signal. Amiruddin.Candlestick Charts Provide Profitable Swing Trades If the markets start pulling back from here. S. CTTY formed another Inverted Hammer on Thursday with some confirmed buying on Friday.Kom Financial Planner / Fund Manager PT. made for a very profitable trade. the Inverted Hammer. Watch for the next leg up. the Candlestick signals make it very easy to identify when the pullback is over. Millennium Penata Futures Makassar +62 815 2417 8898 . As illustrated in our recommendation of CTTY. once the breakout occurred and the profit-taking came into the stock. anticipating that the markets are in an uptrend.

Candlestick Charts Provide Profitable Swing Trades

There are always opportunities being revealed when Candlestick signals are used for finding high profit trades.

The Inverted Hammer Signal
Learning how to play the stock market is an endeavor that most investors never master. Learning how to play the stock market involves controlling one's emotions. Candlestick signals are a great benefit for the beginning investor as well as the experienced trader. The information conveyed in the major candlestick signals is the visual depiction of investor sentiment. Most investors' sentiment unfortunately involves the extremes of human emotions, fear and greed. Learning how to play the stock market is an educational process. An investor should learn the basics of why prices move. The candlestick signals, especially the 12 major signals, involve the visual elements produced by human emotions. Being able to correctly analyze what these

Amiruddin, S.Kom Financial Planner / Fund Manager PT. Millennium Penata Futures Makassar +62 815 2417 8898

Candlestick Charts Provide Profitable Swing Trades

emotions are doing at specific points of a trend become a valuable pool for successful investing. The information incorporated into a major candlestick signal provides a huge advantage for those investors just learning how to play the stock market. The result of simple visual analysis permits an investor to take advantage of high probability situations. The major signals are created by the aspects of human emotions being put into trading decisions. Investor psychology produces reoccurring thought processes as investors go through different stresses of a price trend. The 12 major signals are a very important tool when learning how to play the stock market. Understanding the investment psychology that creates each signal is an important element for understanding how professional investors think. One of the most important facets for learning how to play the stock market is knowing how to put the probabilities in your favor. The candlestick signals create a format that does just that. Hundreds of years of observations have resulted in reversal signals that are easy to identify. When learning how to play the stock market, it is very important to find indicators that have a high probability of producing profits and a low probability of producing losses. This may be stating the obvious. However, the utilization of candlestick signals is being done by a very small percentage of the investment population. Use the major signals to start profiting from your investment decisions immediately. The Inverted Hammer produces some very important attributes when analyzing a potential reversal. It is considered one of the 12 major signals. Learn how to use an inverted hammer signal correctly. The probabilities of being in a correct trade when utilizing this signal becomes extremely high.

Amiruddin, S.Kom Financial Planner / Fund Manager PT. Millennium Penata Futures Makassar +62 815 2417 8898

Candlestick Charts Provide Profitable Swing Trades

INVERTED HAMMER

Description The Inverted Hammer is comprised of one candle. It is easily identified by the small body with a shadow at least two times greater than the body. Found at the bottom of a downtrend, this shows evidence that the bulls are stepping in, but the selling is still going on. The color of the small body is not important but the white body has more bullish indications than a black body. A positive day is required the following day to confirm this signal. Criteria 1. The upper shadow should be at least two times the length of the body. 2. The real body is at the lower end of the trading range. The color of the body is not important, although a white body should have slightly more bullish implications. 3. There should be no lower shadow, or a very small lower shadow. Signal Enhancements 1. The longer the upper shadow, the higher the potential of a reversal occurring. 2. A gap down from the previous day's close sets up for a stronger reversal move. 3. The day after the inverted hammer signal opens higher. 4. Large volume on the day of the inverted hammer signal increases the chances that a blowoff day has occurred.
Amiruddin, S.Kom Financial Planner / Fund Manager PT. Millennium Penata Futures Makassar +62 815 2417 8898

the atmosphere is bearish. But the next day.Candlestick Charts Provide Profitable Swing Trades Pattern Psychology After a downtrend has been in effect. The Bulls have stepped in. The price opens and starts to trade higher. the Bulls step in and take the price back up without major resistance from the Bears. If the price maintains strong after the Inverted Hammer day the signal is confirmed. S. The exisiting sellers knock the price back down to the lower end of the trading range. Amiruddin. but they cannot maintain the strength.Kom Financial Planner / Fund Manager PT. Millennium Penata Futures Makassar +62 815 2417 8898 . The Bears are still in control.

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