03 KM Candle Sticks

Candlesticks are the most commonly used chart in FX trading.
This is because they allow you to picture relevant

price movements in a certain time frame (for example, 30mins).
Here the Doji has a long upper shadow (a spike) and a smaller lower shadow. They appear in uptrends and
warns that the trend may change. The long doji is mostly seen after a long bullish candlestick, especially when
the bullish market seems strong.
The open level trading range becomes smaller when a long doji appears and closes. Here bulls and bears meet
in the equilibrium. Meaning that uptrend energy is becoming weaker.
Dragonfly Doji
The Dragonfly Doji appears when the open, high and close are around the same level. The most important com-
ponent of this Doji is the long lower shadow. This shadow implies that the marker has found the demand.
Bears tend to press prices downwards, however sometimes an area of support is found at the low of the day,
which meant buy pressure is able to push prices back up. Here the bearish advance is
rejected by the bulls.
Price Doji
This Doji rarely appears. It represents a to- tal confusion in the market direction. The
formation is identified by its lack of lower shadow, which means the close price is al-
most equal to the open price.
1. Hanging Man : When a hanging man appears on a bullish trend it emits a bearish signal.
2. Hammer : A hammer is formed when the open, high and close are almost at the same level. The hammer
is a bullish reversal pattern. It mainly occurs at the bottom of down trends.
A bullish engulfing is composed of a smaller bearish body and a larger bullish body. This bullish body engulfs the
previous downtrend pattern. It totally engulfs the body
of the bearish trend but may not always engulf the shadow.
The length of the first bearish shadow is not important in
this instance - it can even be a doji.
Bullish Engulfing
A bearish engulfing pattern is the opposite of a bullish engulfing pattern. A larger bearish body will engulf a
smaller bullish body, without necessarily engulfing its shadows. The length of the smaller bullish body doesn’t
matter and can even be a doji.
The tweezer top can be found at the tip of an uptrend. The first candlestick should be bullish with a larger body,
this will be followed by a bearish candlestick almost the same size. The upper shadows of these candlesticks are
also almost the same. This pattern is more accurate in the context of a broader price chart.
The tweezer bottom can be found at the bottom of a downtrend. The first candlestick should be bearish with a
large body, followed by a bullish candlestick. The bodies and shadows of these candlestick should be nearly the
same size. This
pattern is most accu-
rate when it appears
during market lows, near
support lines or at lower
trend lines.
A The Harami pattern is divided into two types, bullish and bearish. Two shadows need to be at the same or
almost the same level. This pattern consists of a small bearish body which is completely inside the range of the
first bullish body.
Bearish Harami
This pattern consists of a large bullish body and a smaller bearish body that is completely inside the range of
the first body. Harami is a word which stands for pregnant in Japanese therefore the first candle is called as
mother and the second is called as baby.
Bullish Harami
Bullish harami consists of a large bearish body and a smaller bullish body that is completely inside the range of
the first body. Either the body tops or the body bottoms of the two candlesticks may
be at the same level, but whatever the case, bearish body should be smaller than
the previous one.
Flags and pennants are quite similar. They both form during stationary periods in an active trend. Flags are con-
tinuation pattern that are finalised after the break.
Bearish Harami Cross
This is a major bearish reversal pattern which is even more significant than a regular bearish harami. The
pattern characterized by a large bullish body followed by a doji that is completely inside the range of the previ-
ous body.
Bullish Harami Cross
This is a major bullish reversal pattern which is even more signifi-

cant than a regular bullish harami. The pattern characterized by a large
bearish body followed by a doji that is completely inside the range of the
previous body.
This pattern occurs during an uptrend. At first a bullish candlestick appears, after this a new bearish candle will
open after a higher gap. This then closes within the previous price range. Below you can observe the midpoint
between previous open and close prices. The confirmation will appear is a secondary bearish candle forms.
This pattern appears during an uptrend. It consists of a bullish and bearish candlestick. A black candlestick then
opens below the preceding day’s close. It closes below its open. The pattern can look similar to the formation
of a bearish harami, the only difference is; the se-
cond candle closes lower. Which prevents the bul-
lish body engulfing the bearish body.
This three candlestick pattern indicates a bearish reversal. It’s composed of a bullish body, and is then followed
by a doji. This is then followed by a bearish candlestick, as seen below. The bearish candlestick appears when
closing reaches the first candle midpoint. The doji creates a gap between the two.
This pattern also contains three candlesticks. In this instance however it indicates a bullish reversal. It’s compo-
sed of a bearish body, followed by a doji which creates a gap, and then a bullish body. The closing of the bullish
candlestick reaches the first midpoint.

03 KM Candle Sticks

Uploaded by

Copyright:

Available Formats

03 KM Candle Sticks

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

03 KM Candle Sticks

Uploaded by

Copyright:

Available Formats

Candlesticks are the most commonly used chart in FX trading.

This is because they allow you to picture relevant

Bearish Harami Cross

Bullish Harami Cross

This is a major bullish reversal pattern which is even more signifi-

You might also like