So far we have learned about Forex such as read forex quotes, etc. The next treasure map can be found in candlestick pattern itself. Yes, the candlestick will gives us a sign to dig up a treasure trove. Do not believe? Take a look at the patterns that occur in the candlestick.
Spinning Tops Having a small body. Means to have a small movement from open to close. The shadow of the candlestick indicates a fight between seller and buyer, but no one wins.
If spinning tops occur after a long trend, usually there will be a reversal. Because the buyer or seller is not much left.
Marubozu show that the buyer or the seller holds full power. There is no shadow of marubozu. Open price same as high prices. And close prices same as low prices.
Doji has the same price between the open and close, or their bodies are very small. Indicate doubt or struggle for position between the buyer and seller.
To use it, you should see the previous candle. If a doji visible after a long hollow bodies, such marubozu, that means the buyer or seller has lost strength and weakened.
Hammer is very useful to find the location of a bullish reversal after a downtrend. As prices fall, the signal of hammer, a near below the prices will start rising again. The length of the lower shadow indicates that sellers pushed prices lower, but buyers are able to overcome selling pressure and closed near the open price.
But you still have to use a laser beam from your eye. Do not rush to open a buy position because you see the hammer. As a precaution, need further identification such as the presence of a bullish candlestick after the hammer. Hammer Candlestick color does not matter.
Hanging Man is also very useful for finding the location of a bearish reversal after an uptrend. long lower shadow shows that sellers pushed prices lower during the session. Buyers are able to push prices back some but only near the open price. This tells us that there are no buyers are left to gives the momentum needed to raise prices. Hanging Man Candlestick color does not matter.
Inverted Hammer and Shooting Star also look the same. The only difference between them is whether you are in a tendency to trend down or up. Both candles have tiny little bodies (filled or empty), over a long shadow, and shadow under the smaller or nonexistent..
BASIC CANDLESTICK PATTERNS
If spinning tops occur after a long trend, usually there will be a reversal. Because the buyer or seller is not much left.
To use it, you should see the previous candle. If a doji visible after a long hollow bodies, such marubozu, that means the buyer or seller has lost strength and weakened.
SINGLE CANDLESTICK PATTERNS
But you still have to use a laser beam from your eye. Do not rush to open a buy position because you see the hammer. As a precaution, need further identification such as the presence of a bullish candlestick after the hammer. Hammer Candlestick color does not matter.
Hanging Man is also very useful for finding the location of a bearish reversal after an uptrend. long lower shadow shows that sellers pushed prices lower during the session. Buyers are able to push prices back some but only near the open price. This tells us that there are no buyers are left to gives the momentum needed to raise prices. Hanging Man Candlestick color does not matter.
see, there are locations where the treasure was hidden.
2 komentar:
you shared nice blog. very well written with right images for example. helped me to understand trading strategy with candlesticks chart. You can see here candlestick basics for more details
GPS robot [10X increase of the deposit amount]
I just got done with a webinar with Mark and his partner, Antony, two days ago and it was AWESOME.
During the webinar Mark and Antony shared their secrets to success and answered questions about their new version of the GPS Forex Robot that is coming out TODAY!
Posting Komentar