Basic Japanese Candlestick Patterns

8/18/2019 Basic Japanese Candlestick Patterns

1/36

Japanese Candle St


2/36

Technical Analysis

•Attempt to forecast stock price on basis of markderived data

• Technicians are only interested in the price movein the market.

• Supply and Demand of Market

• Fundamental vs. Technical


3/36

Japanese candlestick

•Chart hich describe price movement of securitycould be currency

• !ri"inated in Japan

• #efore est developed #ar and lines to read ma


4/36


5/36


6/36

$istory of Japanese candlesti

•

$omma

• %rice and supply and demand

•

Market is in&uenced by trader


7/36

Japanese Candlestick Anatomy


8/36

Long Shadows


9/36

'eversal %atterns

Double Tops ( #ottoms

Triple Tops ( #ottoms

$ead ( Shoulders

'oundin" #ottom %atterns


10/36

Double Tops


11/36

Double #ottoms


12/36

Triple Tops ( #ottoms


13/36

$ead ( Shoulders


14/36

'oundin" #ottom %atterns


15/36

Basic Japanese Candlestick Pat

)either buyers nor sellers could "ain the uhand* and the result as a stando+.


16/36

• ,f a spinnin" top forms durin" an uptrend* this usually means taren-t many buyers left and a possible reversal in direction co

• ,f a spinnin" top forms durin" a dontrend* this usually meansaren-t many sellers left and a possible reversal in direction cou


17/36

Marubou

#ullish Marubou means that #ulls are so stron" and didn-t a#ears to take the price don#earish Marubou means that #ears are stron" and there is asell activity in the market

The lon"er the candlestick* the stron"er the #ulls/#ears.


18/36

0hat does it mean in "eneral1

2. 0hen you see a #ullish Marubou* you should not take a short because #ulls are stron" and price can "o hi"her.

3. 0hen you see a #earish Marubou* you should not take a lon"

4. 0hen you see a #ullish Marubou at end of a dontrend* it is asi"nal. 5ou can 6ust ait for the ne7t candlestick and if it is #ullyou can take a lon" position.

8. 0hen you see a #earish Marubou at end of an uptrend* it is a

si"nal. 5ou can 6ust ait for the ne7t candlestick and if it is #eayou can take a short position.

9. ,f you already have a lon" position and you see a #earish Maruend of the uptrend* you should close your position and take you

;. ,f you already have a short position and you see a #ullish Maruend of the dontrend* you should close your position and take


19/36


20/36

Do6i• Do6i means unskillfully.

• They don-t have a body.• The open price and close price are the same.

• ,t means #oth #ulls and #ears have the same poare matched and the price doesn-t kno here t

•

%rovide uncertainty si"nals.• Do6i candlesticks need con:rmation* they are de

on ne7t candlestick.


21/36


22/36


23/36

Single Candlestick Patterns

Hammer/Hanging Man


24/36

Hammer/Hanging Man


25/36


26/36

Inverted Hammer/Shooting Star


27/36

Inverted Hammer/Shooting Star


28/36

Dual Candlestick Pattern


29/36

T


30/36

Teeer

• The shados of the candlesticks should be of e=ual Teeer Tops should have the same hi"hs* hile Te#ottoms should have the same los.

•

They have identical hi"hs at the top of the market oridentical los at the bottom of the market.


31/36


32/36

$arami

• $arami means pre"nant in Japanese.

• ,t has to be con:rmed by the ne7t candlesticks.

• 0hen the small candlestick in $arami pattern is the pattern is called $arami Cross.


33/36

Mornin" Star

• #ullish


34/36

vening star• #earish

•


35/36

Three black cros

• A bearish candlestick pattern that is used to prereversal of the current uptrend

• This pattern is used to predict the top of an uptrtraders ill ant to con:rm this si"nal ith othetechnical indicators to con:rm that the momentuactually chan"in".


36/36

Three hite Soldiers

• A bullish candlestick pattern that is used to predreversal of the current dontrend.

Basic Japanese Candlestick Patterns

Documents

Transcript of Basic Japanese Candlestick Patterns