BBS Trading Expert is available with the “BAND INDICATORS” DVD! Want to know more about “Capturing Profit with Technical Forex long legged doji bearish”? AXIOM business books awards, bronze medal for my book!
AXIOM Business Books Awards, bronze medal. If you are new to candlestick charts it will not be that easy learning and recognizing all the patterns. I would like to suggest that you read through the chapter and that you start by recognizing at least the following patterns. Piercing line and Morning star patterns. Dark cloud cover and Evening star patterns.
Introduction In the 1700s, a legendary Japanese rice trader named Homma used trading techniques that eventually evolved into the candlestick techniques that technical analysts on the Japanese stock market used in the 1870s. Steve Nison introduced these techniques to the Western world in his first book, Japanese Candlestick Charting Techniques. The advantage of using candles on charts is that single or multiple candle patterns give earlier and more reliable reversal signals. Every candle shows the activity for the referenced period in hourly, daily, or weekly charts, for example. 1: Horizontal reference points of the candlestick. 1, the horizontal reference points of the candle represent the opening price, the highest price, the lowest price, and the closing price of the considered period.
The rectangular portion of the candle, or the body, represents the range between the opening and the closing prices. The candlewicks are called shadows, and they extend up to the highest price and down to the lowest price of the related period. You must always take into account the previous trend when interpreting candlestick patterns. Candlestick patterns do NOT give price targets! Psychological Background The candlesticks in figures 6. 5 demonstrate the psychological trading that takes place during the period represented by a single candle.
6 shows some rising power candles. 7 shows some candles with falling power. 8 shows candles with reversal power. A big white body means buyers are in power, and the trend is up. A big black body means sellers are in power, and the trend is down. A small body means that buyers and sellers are trying to take power.