Candlestick.
What is a 'Candlestick'
A candlestick is a chart that displays the high, low, opening and closing prices of a security for a specific period. The wide part of the candlestick is called the "real body" and tells investors whether the closing price was higher or lower than the opening price. Black/red indicates that the stock closed lower and white/green indicates that the stock closed higher.
BREAKING DOWN 'Candlestick'
Candlesticks reflect the impact of investor sentiment on security prices and are used by technical analysts to determine when to enter and exit trades. Candlestick charting is based on a technique developed in Japan in the 1700s for tracking the price of rice. Candlesticks are a suitable technique for trading any liquid financial asset such as stocks, foreign exchange and futures.
Long white/green candlesticks indicate there is strong buying pressure; this typically indicates price is bullish, however, they should be looked at in the context of the market structure as opposed to individually. For example, a long white candle is likely to have more significance if it forms at a major price support level. Long black/red candlesticks indicate there is significant selling pressure. This suggests the price is bearish. A common bullish candlestick reversal pattern, referred to as a hammer, forms when price moves substantially lower after the open, then rallies to close near the high. The equivalent bearish candlestick is known as a hanging man. These candlesticks have a similar appearance to a square lollipop, and are often used by traders attempting to pick a top or bottom in a market.
Two-Day Candlestick Trading Patterns.
There are many short-term trading strategies based upon candlestick patterns. The engulfing pattern suggests a potential trend reversal; the first candlestick has a small body that is completely engulfed by the second candlestick. It is referred to as a bullish engulfing pattern when it appears at the end of a downtrend, and a bearish engulfing pattern at the conclusion of an uptrend. The harami is a reversal pattern where the second candlestick is entirely contained within the first candlestick and is opposite in color. A related pattern, the harami cross has a second candlestick that is a doji; when the open and close are effectively equal.
Three-Day Candlestick Trading Patters.
An evening star is a bearish reversal pattern where the first candlestick continues the uptrend. The second candlestick gaps up and has a narrow body. The third candlestick closes below the midpoint of the first candlestick. A morning star is a bullish reversal pattern where the first candlestick is long and black/red-bodied, followed by short candlestick that has gapped lower; it is completed by a long-bodied white/green candlestick that closes above the midpoint of the first candlestick.
Candlestick Pattern Dictionary.
Table of Contents.
Candlestick Pattern Dictionary.
Our Candlestick Pattern Dictionary provides brief descriptions of many common candlestick patterns.
Abandoned Baby.
A rare reversal pattern characterized by a gap followed by a Doji, which is then followed by another gap in the opposite direction. The shadows on the Doji must completely gap below or above the shadows of the first and third day.
Dark Cloud Cover.
A bearish reversal pattern that continues the uptrend with a long white body. The next day opens at a new high then closes below the midpoint of the body of the first day.
Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary, and the resulting candlestick looks like, either, a cross, inverted cross, or plus sign. Doji convey a sense of indecision or tug-of-war between buyers and sellers. Prices move above and below the opening level during the session, but close at or near the opening level.
Downside Tasuki Gap.
A continuation pattern with a long, black body followed by another black body that has gapped below the first one. The third day is white and opens within the body of the second day, then closes in the gap between the first two days, but does not close the gap.
Dragonfly Doji.
A Doji where the open and close price are at the high of the day. Like other Doji days, this one normally appears at market turning points.
Engulfing Pattern.
A reversal pattern that can be bearish or bullish, depending upon whether it appears at the end of an uptrend (bearish engulfing pattern) or a downtrend (bullish engulfing pattern). The first day is characterized by a small body, followed by a day whose body completely engulfs the previous day's body and closes in the opposite direction of the trend. This pattern is similar to the outside reversal chart pattern, but does not require the entire range (high and low) to be engulfed, just the open and close.
Evening Doji Star.
A three-day bearish reversal pattern similar to the Evening Star. The uptrend continues with a large white body. The next day opens higher, trades in a small range, then closes at its open (Doji). The next day closes below the midpoint of the body of the first day.
Evening Star.
A bearish reversal pattern that continues an uptrend with a long white body day followed by a gapped up small body day, then a down close with the close below the midpoint of the first day.
Falling Three Methods.
A bearish continuation pattern. A long black body is followed by three small body days, each fully contained within the range of the high and low of the first day. The fifth day closes at a new low.
Gravestone Doji.
A doji line that develops when the Doji is at, or very near, the low of the day.
Hammer candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. The resulting candlestick looks like a square lollipop with a long stick. If this candlestick forms during a decline, then it is called a Hammer.
Hanging Man.
Hanging Man candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. The resulting candlestick looks like a square lollipop with a long stick. If this candlestick forms during an advance, then it is called a Hanging Man.
A two-day pattern that has a small body day completely contained within the range of the previous body, and is the opposite color.
Harami Cross.
A two-day pattern similar to the Harami. The difference is that the last day is a Doji.
Inverted Hammer.
A one-day bullish reversal pattern. In a downtrend, the open is lower, then it trades higher, but closes near its open, therefore looking like an inverted lollipop.
Long Body / Long Day.
A long day represents a large price move from open to close, where the length of the candle body is long.
Long-Legged Doji.
This candlestick has long upper and lower shadows with the Doji in the middle of the day's trading range, clearly reflecting the indecision of traders.
Long Shadows.
Candlesticks with a long upper shadow and short lower shadow indicate that buyers dominated during the first part of the session, bidding prices higher. Conversely, candlesticks with long lower shadows and short upper shadows indicate that sellers dominated during the first part of the session, driving prices lower.
A candlestick with no shadow extending from the body at either the open, the close or at both. The name means close-cropped or close-cut in Japanese, though other interpretations refer to it as Bald or Shaven Head.
Morning Doji Star.
A three-day bullish reversal pattern that is very similar to the Morning Star. The first day is in a downtrend with a long black body. The next day opens lower with a Doji that has a small trading range. The last day closes above the midpoint of the first day.
Morning Star.
A three-day bullish reversal pattern consisting of three candlesticks - a long-bodied black candle extending the current downtrend, a short middle candle that gapped down on the open, and a long-bodied white candle that gapped up on the open and closed above the midpoint of the body of the first day.
Piercing Line.
A bullish two-day reversal pattern. The first day, in a downtrend, is a long black day. The next day opens at a new low, then closes above the midpoint of the body of the first day.
Rising Three Methods.
A bullish continuation pattern in which a long white body is followed by three small body days, each fully contained within the range of the high and low of the first day. The fifth day closes at a new high.
Shooting Star.
A single day pattern that can appear in an uptrend. It opens higher, trades much higher, then closes near its open. It looks just like the Inverted Hammer except that it is bearish.
Short Body / Short Day.
A short day represents a small price move from open to close, where the length of the candle body is short.
Spinning Top.
Candlestick lines that have small bodies with upper and lower shadows that exceed the length of the body. Spinning tops signal indecision.
A candlestick that gaps away from the previous candlestick is said to be in star position. Depending on the previous candlestick, the star position candlestick gaps up or down and appears isolated from previous price action.
Stick Sandwich.
A bullish reversal pattern with two black bodies surrounding a white body. The closing prices of the two black bodies must be equal. A support price is apparent and the opportunity for prices to reverse is quite good.
Three Black Crows.
A bearish reversal pattern consisting of three consecutive long black bodies where each day closes at or near its low and opens within the body of the previous day.
Three White Soldiers.
A bullish reversal pattern consisting of three consecutive long white bodies. Each should open within the previous body and the close should be near the high of the day.
Upside Gap Two Crows.
A three-day bearish pattern that only happens in an uptrend. The first day is a long white body followed by a gapped open with the small black body remaining gapped above the first day. The third day is also a black day whose body is larger than the second day and engulfs it. The close of the last day is still above the first long white day.
Upside Tasuki Gap.
A continuation pattern with a long white body followed by another white body that has gapped above the first one. The third day is black and opens within the body of the second day, then closes in the gap between the first two days, but does not close the gap.
Japanese Candlesticks.
If you want to become a successful trader you need to learn the art of applying Japanese candlesticks to your trades. When you combine individual Japanese candlesticks together you get what are commonly called candlestick patterns.
6.1. What are Japanese Candlesticks ?
Japanese candlesticks : a chart and analytical tool.
Market analysis at Forex can be made with the help of technical indicators and also with the use of so-called " Japanese candlesticks ". The latter method of analysis is very popular among traders. So, what are Japanese candlesticks ?
Japanese Candlesticks Cheat Sheet.
Did you click here first? If you did, stop reading right now and go through the entire Japanese Candlesticks Lesson first! .
If someone told you they had uncovered a 300 year old secret that had the potential to bring great wealth, would you listen? If they could explain the mysteries behind the secret so that you could profit as well, would you be interested?
This is your first attempt with this quiz. Good luck!
Below, find 6 multiple choice questions to test your understanding of the lesson.
Please note: For each of the questions, make sure that you mark all the answers that you think are correct.
That's the end of the.
What Does a Shooting Star Look Like?
Options: Compute option premium with our Black and Scholes tool.
All information are subject to terms of use .
Common Candlestick Patterns and History of.
It's not too often that tools of financial analysis have a near-mythical origin. In the forex market, however, the most common graphs are referred to as 'candlestick' charts.
Candlestick charts (which are also sometimes referred to as.
A westerner by the name of Steve Nison "discovered" this secret technique called "
There are a few ways to read the stock chart's price action - there are lines, bars, dots - but there is one type of price bar that really tells a story and that's.
com© family of websites makes a serious contribution to the otherwise stagnant literature of.
Qstick (QSTK)(PROFESSIONAL subscribers only): Qstick is a moving average of the bodies of.
Heiken-ashi candlesticks provide interpretation of market trends in a neat and descriptive way.
Capital Asset Pricing Model (CAPM) is a method used by investors to prioritize what stocks to invest in, given their limited cash.
The focus of this module will be on the.
This means that Candlestick Patterns have changed dramatically in just the last decade. Some Candlestick Patterns from the traditional.
Bullish Separating Lines is a continuation pattern that occurs in an uptrend with a long bodied black candlestick followed by a white candlestick with the same opening price as the first but with no lower wick. For a complete printable reference see also:
The candlesticks themselves tell us if prices are going up, down, or sideways, and if used in the correct manner, they are a powerful tool for honing our entries, stop losses, and exits. But much like any other regular conventional technical analysis,
Analytics for japanese candlesticks dictionary Add to watchlist.
Best of japanese candlesticks dictionary at KeyOptimize (Out of 1.7 Million in result | Last check 14 February 2016 )
Trusted by thousands of online investors, StockCharts has the award-winning charting tools, analysis resources and expert commentary you need to invest smarter.
Over 14,000 terms - a comprehensive online financial glossary that empowers individuals with the financial knowledge necessary to understand the basics of investments. This information comes from the world of banking and investing, providing users with.
This website is for sale! psychonauticresearch is your first and best source for all of the information you’re looking for. From general topics to more of what you would expect to find here, psychonauticresearch has it all. We hope you find wha.
Japanese Candlesticks Auto-Recognition Plug-in makes it easier than ever to recognize popular candlestick trading formations. Take a FREE 14-day day trial today!
Price Action Trading Strategies.
Investopedia is the world's leading source of financial content on the web, ranging from market news to retirement strategies, investing education to insights from advisors.
MQL5: language of trade strategies built-in the MetaTrader 5 Trading Platform, allows writing your own trading robots, technical indicators, scripts and libraries of functions.
Popular Terms. Trading Terms. Technical Analysis. Forex Terms. • stop-loss. • Retail Trade – Australia. • Retail Prices Index (RPI) – UK. • RBNZ Rate Decision – New Zealand. • RBA Rate Decision – Australia. • range trading. • nominal GDP. • NIESR GDP .
Traders Laboratory (TL) is the leading online trading forum for day traders, swing traders, and active traders covering forex, stocks, futures, and options.
Candlestick Patterns are the premier tool for reading a chart and understanding the bullish, bearish or non-trending nature of any stock, forex pair or futures price chart.
Dictionary is the world’s leading online source for English definitions, synonyms, word origins and etymologies, audio pronunciations, example sentences, slang phrases, idioms, word games, legal and medical terms, Word of the Day and more. For over.
OneLook Dictionary Search Definitions Related words Example searches bluebird Find definitions of bluebird blue* Find words and phrases that start with blue *bird Find words and phrases that end with bird bl. rd Find words that start with bl , end wi.
ForexDictionary - a Forex Dictionary.
Welcome to Elite Trader, the #1 community for active traders of Stocks, Futures, Options, and Currencies. Visit our site and become a member today!
Free Ebook Search Engine. All Most Popular PDF&DOC and etc file. ebookbrowse.
Комментарии
Отправить комментарий