There are several basic candlestick positions, where two candles are so arranged that a conclusion can be drawn regarding the forex market’s current sentiment. Many of the more complex three-candle patterns are based upon these basic positions, so they’re worth the trader’s time to learn. Read More…
Category : Forex Tags : candlesticks, Forex, forex analysis, forex market, forex terminology, forex traders, forex trading, forex trading market
Several three-candle patterns account for gaps and provide some guidance as to the stock’s future path. Although they are generally considered continuation patterns, research performed by analyst Tom Bulkowski shows that many of them perform as reversal patterns as often as not. With this caveat in mind, candlestick gapping patterns provide useful insights into the psychology behind the share market’s movements.
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Category : Indicators Tags : candlesticks, gapping patterns
Perhaps the most basic of all candlestick patterns are the long-shadow reversals, which tend to form at the end of short-term trending moves and signal the turn. These four candles all have small real bodies, one short or nonexistent wick, and one longer wick, which determines the candle’s proper description and interpretation.
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Category : Indicators Tags : candlesticks, stock chart patterns
The term long candle is an ambiguous one in candlestick analysis, lending itself to multiple interpretations. For example, on the partial chart below, no one would deny that the central descending (black or red) candle qualifies as a long candle. But what about the descending candle preceding it, or the ascending (white or clear) candle following?
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Category : Technical Tags : candlesticks, stock analysis
One of the more common candlestick patterns in the forex trading market, particularly during the summer low-liquidity doldrums, is the squeeze alert, both bullish and bearish. The pattern’s formation signifies market indecision and trader discomfort with the current price direction, and often precedes a reversal.
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Category : Indicators Tags : candlesticks, forex market
