Candlestick is one of the most popular means of graphic representation in the capital markets, but not limited to use on only that, they are considered unique technique to read the reaction of price and identify the psychological investors through a range of models that give early signs of great value to analysts.
Japanese candles dates back to the 1600 borders, where the Japanese trade in the rice market, and the rackets called "Munehisa homma" creating art technology to represent the price of rice and analysis This technique is named after the Japanese candles.
Compared to draw candlestick columns very unjust, candlestick excel to a large extent it is the same data that describes articulated columns (open, close, minimum, maximum), but in the relationship between these prices to form models give honest impression of the psyche of investors.
Here are the top models candlestick:
Hammer
Configure the form:
Is a model that looks like a hammer.
Be a small candle body, and consists of a single candle.
Be lower under twice the candle body at least.
Have a very small upper shadow or have no upper shadow, the more shade longer than the lower body of the candle, the better.
Comes at the end of the downward trend to indicate the potential for it to be reflected.
The form of the form:
Example:
Inverted Hammer
Configure the form:
A small candle body, and consists of a single candle.
Be under the upper body weakness candle at least, have remained a very small basement or may not have the basement.
Comes at the end of the downward trend to indicate the potential for it to be reflected.
The form of the form:
Example:
Hanging Man
Configure the form:
Is a small candle body, and consists of a single candle.
Be lower shadow candle body weakness, at least, the upper and shadow is very small or non-existent.
Comes at the end of the upward trend to indicate the potential for it to be reflected.
The form of the form:
Example:
Shooting Star
Configure the form:
A small candle body, and consists of a single candle.
Be under the upper body weakness candle at least, have remained a very small basement, and whenever a longer upper shadow of the body of the candle, the better.
Comes at the end of the upward trend to indicate the potential for it to be reflected.
The form of the form:
Example:
Doji
Components of the form:
Candle body is a line.
Candle closing price equal to the opening price or be higher / lower a little bit, this candle express confusion between sellers and buyers.
Upper and lower shadow usually be Dgar.
If you came at the end of an upward trend, it is a sign of weakness for the direction and alert for a trend reversal from boarding to landing.
If you came in the bearish trend is a sign of weakness and an alert for a trend reversal from landing to climb.
The form of the form:
Example:
Spinning Tops & Bottoms
Is a neutral model consists of a single candle, a doji like model expresses the confusion between the market ups and downs.
This model shows that the market is engaged, and approached the change If the trend is to the upside to accidental or turns bearish and if accidental turns into a bearish or bullish.
Significant only if it finds at the level of support or resistance, or any strong technical barrier.
Candle body is small and in the shadow of the upper and lower candle be small and the direction of the candle is not important.
The form of the form:
Example:
- Rotary model Tops
- Bottoms rotary model
High Wave Candle
Is a neutral model consists of a single candle, and occurs in the case of equal buying and selling power in times of high momentum.
Indicates the possibility of a reversal in the price trend. And especially if they are at the level of a strong technician.
And the body of a small candle and candle shadows are long and the direction of the candle is not important.
The form of the form:
Example:
Bullish Engulfing
- Consists Almnozj of candles.
- Be the first candle bearish, come the second bullish candle closes above the level of the opening of the first candle, and the higher the closure of the first candle opening price was better.
- Model comes at the end of the downward trend to indicate potential for it to be reflected.
- Preferably the upper shadow candle second highest of the first candle.
The form of the form:
Example:
Bearish Engulfing
Configure the form:
The model consists of candles.
Be the first candle bullish, and bearish candle comes second and closes below the level of the opening of the first candle, the more you close less than the price of the opening of the first candle as it was the best.
Model comes at the end of the upward trend to indicate chances for it to be reflected.
Preferably a shade lower for the second candle less than the first candle, and to be the lowest price in the movement that precede it.
The form of the form:
Example:
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