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What are “CANDLESTICKS” And How To Use Them PowerPoint Presentation
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What are “CANDLESTICKS” And How To Use Them

What are “CANDLESTICKS” And How To Use Them

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What are “CANDLESTICKS” And How To Use Them

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  1. What are “CANDLESTICKS” And How To Use Them

  2. The bar at the top or bottom of a candle can be referred to as a shadow or wick

  3. Candlesticks can be used: On any time frame, one day, one hour, 30-minutes etc.

  4. Candlesticks can be used: On any time frame, one day, one hour, 30-minutes etc. To describe the price action during a given time frame.

  5. There are many candlestick patterns but for the most part they can be grouped into 6 major patterns

  6. Sometimes it is hard to determine what each candle stick formation is trying to tell you

  7. The recommendation form all the candle stick instruction we have seen is: Always confirm the candle stick patterns with other indicators.

  8. What is the highest probability direction of the market. Each Candle gives us reason to ask… Is this a continuation or a reversal pattern?

  9. 6 Most common: Candle Sticks Patterns:

  10. 6 Most common: Candle Sticks Patterns: Doji Candles

  11. 6 Most common: Candle Sticks Patterns: Doji Candles Near Doji Group (tail longer than the body)

  12. 6 Most common: Candle Sticks Patterns: Doji Candles Near Doji Group (tail longer than the body) Engulfing Candles

  13. 6 Most common: Candle Sticks Patterns: Doji Candles Near Doji Group (tail longer than the body) Engulfing Candles Tweezer Candles

  14. 6 Most common: Candle Sticks Patterns: Doji Candles Near Doji Group (tail longer than the body) Engulfing Candles Tweezer Candles Inside Candles

  15. 6 Most common: Candle Sticks Patterns: Doji Candles Near Doji Group (tail longer than the body) Engulfing Candles Tweezer Candles Inside Candles Outside Candles

  16. Doji Doji is a candle without a body just a tail It opens and closes near the same place

  17. Near Doji Group Where the wick is longer than the body

  18. They look the same but are positioned in among the other candles differently

  19. Recognition Criteria: The long shadow or wick is about two or three times the size of the real body. Little or no upper shadow or wick. The real body is in the upper third of the trading range. The color of the real body is not important. though a white body is more bullish than a black body.

  20. The hammer is a bullish reversal pattern that forms during a downtrend. Just because you see a hammer form in a downtrend doesn't mean you automatically place a buy order! You need to have more bullish confirmation before it's safe to pull the trigger. The hang man is bearish where the hammer isbullish

  21. An example of confirmation would be: to wait for a white candlestick to close above the open to the right side of the hammer. And or check for the 5 alarm trade

  22. The Hammer and Hang man should give you heads up that the market is slowing and my be setting up for a reversal

  23. Almost always goes in the direction if opens on opposite side of wick Tails usually represent a reversal accept when the reversal covers the tail.

  24. Inverted Hammer or Shovel

  25. Inverted Hammer Shovel

  26. The inverted hammer occurs when price has been falling suggests the possibility of a reversal. Its long upper shadow shows that price was trying to go higher suggesting a slow down of the current direction with a reversal potential. The opposite is true for the shovel Inverted Hammer Shovel

  27. ENGULFING CANDLES

  28. We only look at the bodies to determine Engulfing candles. It is where the body of the current candle completely swallows the body of the previous candles Bullish engulfing usually means reversal to the up side

  29. The bullish engulfing pattern is a two candle stick pattern that signals a strong up move may be coming. It happens when a bearish candle is immediately followed by a larger bullish candle.

  30. We only look at the bodies to determine Engulfing candles. It is where the body of the current candle completely swallows the body of the previous candles Bearish engulfing usually means reversal to the down side

  31. The bearish engulfing pattern is the opposite of the bullish pattern. This type of pattern occurs when bullish candle is immediately followed by a bearish candle that completely "engulfs" it. This means that a strong move down could happen.

  32. An engulfing candle is more significant if it happens near a support level. It is even more significant if it hits near another high or low… maybe a double or triple top or bottom.

  33. Tweezer Bottoms and Tops

  34. Tweezer Bottoms and Tops The tweezers are dual candlestick reversal patterns. This type of candlestick pattern could usually be spotted after an extended up trend or downtrend, giving heads up that a reversal may happen soon.

  35. One of the most often misunderstood pattern

  36. One of the most often misunderstood pattern Does not matter if there is a wick or not. It is the position of the bodies next to each other

  37. One of the most often misunderstood pattern Does not matter if there is a wick or not. It is the position of the bodies next to each other It is a reversal pattern

  38. One of the most often misunderstood pattern Does not matter if there is a wick or not. It is the position of the bodies next to each other It is a reversal pattern Patterns are a foot print of what has come before

  39. The most effective tweezers have the following characteristics: The first candle is the same as the overall trend. If price is moving up, then the first candle should be bullish.

  40. The most effective tweezers have the following characteristics: The first candle is the same as the overall trend. If price is moving up, then the first candle should be bullish. The second candle is opposite the overall trend. If price is moving up, then the second candle should be bearish.

  41. The most effective tweezers have the following characteristics: The first candle is the same as the overall trend. If price is moving up, then the first candle should be bullish. The second candle is opposite the overall trend. If price is moving up, then the second candle should be bearish. The shadows of the candles should be of equal length. Tweezer tops should have the same highs, while tweezer bottoms should have the same lows.

  42. Inside Candles Inside candle usually means you are going to move against the grain. Inside means it opens inside the body of the previous candle

  43. The inside up candlestick formation is a trend-reversal pattern that is found at the bottom of a downtrend. It indicates that the downtrend is possibly over and that a new uptrend has started.

  44. The inside up candlestick formation is a trend-reversal pattern that is found at the bottom of a downtrend. It indicates that the downtrend is possibly over and that a new uptrend has started. Conversely, the inside down candlestick formation is found at the top of an uptrend. It means that the uptrend is possibly over and that a new downtrend has started.

  45. Outside Candles Up Outside Candles Down Down Outside candle is where you open outside the prior body and that usually means you are going to continue in that direction up or down

  46. Outside Candles Up Outside Candles Down Down Outside candle is where you open outside the prior body and that usually means you are going to continue in that direction up or down Outside candle trend continuation

  47. The outside up candle pattern is formed when the long bullish candles follow a downtrend, signaling a reversal has occurred. This type of candlestick pattern is considered as one of the strongest reversal patterns, especially when it occurs after an extended downtrend and a short period of consolidation. The inside down candle pattern if just the opposite of the up candle

  48. There are several patterns that tell you the same thing for example is the market: Continuing Reversing Undecided

  49. 6 Most Common Candlestick patterns: Doji Candles Near Doji Group (tail longer than the body) Engulfing Candles Tweezer Candles Inside Candles Outside Candles

  50. 6 Most Common Candlestick Patterns: Indecision Candle, No body Doji Candles