Candlesticks 2
-
Upload
eric-owen -
Category
Economy & Finance
-
view
758 -
download
19
description
Transcript of Candlesticks 2
www.forextradingmethod.info 1
Using Candlesticks with Indicators and Patterns
2009/7/13
www.forextradingmethod.info 22009/7/13
An Umbrella candle at the top becomes a Hanging Man
Interpretation : The sighting of a hanging man signals a possible market top but bearish confirmation is required before selling. Candle 3 must close lower than candles 2 and 1 to generate a sell signal.
www.forextradingmethod.info 32009/7/13
Short candles as continuation patterns
Interpretation: It is a bullish candle as the close is greater than the open and the close is at the high. It is likely to be a continuation pattern as the bulls are still in control. This candle’s bullishness will only be threatened if there is a close below its low on the next day .
www.forextradingmethod.info 42009/7/13
Long white candle breaks resistance - Buy signal
www.forextradingmethod.info 52009/7/13
White candles at a low price area - Buy on breakout of resistance
www.forextradingmethod.info 62009/7/13
Long white candles at high price area warns of an overbought market
www.forextradingmethod.info 72009/7/13
Long white candle’s low acts as support. Sell below support
www.forextradingmethod.info 82009/7/13
Short black candles as continuation patterns
The Black Upper Shadow Candle is considered a weak candle, as the close is less than the open. Though there is an attempt by the bulls to control price at some point during the day the weak close at the end of the day impliesweakness. This candle is more bearish than the Black Lower Shadow Candle because it closed at the low. It can appear in a consolidation pattern or as part of a trend continuation pattern.
www.forextradingmethod.info 92009/7/13
Predominance of white candles over blacks have bullish implications
www.forextradingmethod.info 102009/7/13
Long black candle breaks support - Sell signal
www.forextradingmethod.info 112009/7/13
Long black candle at low price area acts as support
www.forextradingmethod.info2009/7/13
Long black candle at high price area acts as resistance
www.forextradingmethod.info 13
If you have any comment or experience on this method, please
leave your message in our comment column in
www.forextradingmethod.info
2009/7/13