Candlestick is one of the technical analysis that traders use to inform the direction of price movement whether it will be bullish or bearish. Where this information is obtained from a pattern of candlestick that has been formed previously that is psychologically formed due to pressure from buyers and sellers, from this pressure finally formed candlestick pattern.
Inside candlestick contains information about opening price, highest price, lowest price and closing price. In the reading there are two types of candlestick, when the closing price (close) is above the opening price (open) is an empty candlestick type (white) and the price is in rising condition. But if the closing price position (close) is below the opening price (open) is the type of candlestick content (black color) and the price is in descending condition.
The highest price and the lowest price will form the tail (shadow) whose naming follows the direction of candlestick. Where in the leading position is called upper shadow and the lowest position is lower shadow.
Basically there are 12 patterns of candlestick pattern that you can learn to add your trading skill.
Marubozu
Typical of this candlestick is a long candle body, and a very short shadow does not even have a shadow at all. This is caused by very strong bearish or bullish pressure, the price rises or falls very strongly without any hesitation. This is what then causes the absence of shadow in Marubozu. Traders should be wary of the appearance of this candlestick because it indicates a very strong market pressure.
Long Candle
The difference with Marubozu, this candlestick has a shadow that looks quite clear, this means the same as having market pressure, but the pressure is not as strong as Marubozu. Candlestick position can still change fox adjust to market pressure.
Spinning Tops
There are four types of doji but have meaning and meaning which is sala, that is neutral. Long-legged doji, dragonfly doji, gravestone doji and four price doji. In small trading range doji often arise because it reflects the balanced strength between buyers and sellers.
The four doji have the same characteristics, namely the opening and closing prices are the same or really almost the same. What distinguishes is the position, where the long legged doji is in the middle that indicates the weakness of the market. Gravestone doji is at the bottom end indicating the price is not able to maintain its height. Dragonfly Doji which is at the top of the opposite of the gravestone doji, this pattern is usually a tendency to be bullish but very rare. And the last is four price doji, where the opening price, closing price, the highest price and the lowest price are really the same.
Hammer & Hanging Man
Although the name is different, but both of these are the same only that the difference is the location. Where the hammer is at the base of the trend and hanging man is at the top of the trend. The appearance of this candlestick shows a trend reversal pattern even more so after this pattern is reinforced by the appearance of bearish or bullish candle next.
Inverted Hammer & Shooting Star
This candle stick pattern has a resemblance to Hammer & Hanging Man, showing almost the same pattern. The appearance of this candlestick shows a reversal pattern where the inverted hammer at the base of the trend and the shooting star at the top of the trend indicates a confirmed reversal pattern at the next bearish or bullish candle.
Engulfing pattern
There are basically two types of engulfing pattern, bearish engulfing and bullish engulfing. Its main feature is the emergence of candle in opposite direction which is slightly longer than previous candlestick indicating the existence of bullish or bearish potential.
Harami
Or often also called pregnant, the condition is almost similar to engulfing but it's just not as long as engulfing, even only half of the previous candle that indicates a bullish or bearish potential.
Dark Cloud Cover & Piercing Line
Both candlestick patterns provide signals and warnings that a trend will end soon in the short term.
Tweezer
This is a condition where there are hammer & hanging man or inverted hammer & shooting star side by side. This clamping condition shows a strong reversal pattern. This is also a marker for traders to immediately close the position and ensure the profit already earned.
Morning star & evening star
This pattern is a combination of 3 pieces of candle stick forming a pattern of correction where the pattern is going on pulling between bullish and bearish is strong enough. In this pattern can be a powerful reversal signal, but be careful of the third candle that often occurs false signals where white and black candles do not have the same or almost the same size.
Three white soldiers & three black crows
The appearance of a succession of 3 bearish or bullish candlesticks in this sequence can be a strong signal, especially if these three appear in the consolidation phase that is moving sideways. This pattern will only be confirmed strongly if the third candlestick comes with conditions that are at least the same or may be longer than the second candlestick. Trend will be stronger if you appear marubozu on the third candlestick.
Inside candlestick contains information about opening price, highest price, lowest price and closing price. In the reading there are two types of candlestick, when the closing price (close) is above the opening price (open) is an empty candlestick type (white) and the price is in rising condition. But if the closing price position (close) is below the opening price (open) is the type of candlestick content (black color) and the price is in descending condition.
The highest price and the lowest price will form the tail (shadow) whose naming follows the direction of candlestick. Where in the leading position is called upper shadow and the lowest position is lower shadow.
Basically there are 12 patterns of candlestick pattern that you can learn to add your trading skill.
Marubozu
Typical of this candlestick is a long candle body, and a very short shadow does not even have a shadow at all. This is caused by very strong bearish or bullish pressure, the price rises or falls very strongly without any hesitation. This is what then causes the absence of shadow in Marubozu. Traders should be wary of the appearance of this candlestick because it indicates a very strong market pressure.
Long Candle
The difference with Marubozu, this candlestick has a shadow that looks quite clear, this means the same as having market pressure, but the pressure is not as strong as Marubozu. Candlestick position can still change fox adjust to market pressure.
Spinning Tops
Contrary to Marubozu which shows very strong market pressure, this spinning tops pattern shows a very strong market doubt. This situation occurs because buyers and sellers are difficult to find an agreement whether to be bullish or bearish.
But if the Spinning Tops appears at the end of a trend, whether it is an uptrend or a downtrend then this candlestick could be a reversal marker. But it takes one more bullish or bearish candlestick to confirm the direction of this reversal.
Doji
The four doji have the same characteristics, namely the opening and closing prices are the same or really almost the same. What distinguishes is the position, where the long legged doji is in the middle that indicates the weakness of the market. Gravestone doji is at the bottom end indicating the price is not able to maintain its height. Dragonfly Doji which is at the top of the opposite of the gravestone doji, this pattern is usually a tendency to be bullish but very rare. And the last is four price doji, where the opening price, closing price, the highest price and the lowest price are really the same.
Hammer & Hanging Man
Although the name is different, but both of these are the same only that the difference is the location. Where the hammer is at the base of the trend and hanging man is at the top of the trend. The appearance of this candlestick shows a trend reversal pattern even more so after this pattern is reinforced by the appearance of bearish or bullish candle next.
Inverted Hammer & Shooting Star
This candle stick pattern has a resemblance to Hammer & Hanging Man, showing almost the same pattern. The appearance of this candlestick shows a reversal pattern where the inverted hammer at the base of the trend and the shooting star at the top of the trend indicates a confirmed reversal pattern at the next bearish or bullish candle.
Engulfing pattern
Although the name is different, but both of these are the same only that the difference is the location. Where the hammer is at the base of the trend and hanging man is at the top of the trend. The appearance of this candlestick shows a trend reversal pattern even more so after this pattern is reinforced by the appearance of bearish or bullish candle next.
Inverted Hammer & Shooting Star
There are basically two types of engulfing pattern, bearish engulfing and bullish engulfing. Its main feature is the emergence of candle in opposite direction which is slightly longer than previous candlestick indicating the existence of bullish or bearish potential.
Harami
Or often also called pregnant, the condition is almost similar to engulfing but it's just not as long as engulfing, even only half of the previous candle that indicates a bullish or bearish potential.
Dark Cloud Cover & Piercing Line
Both candlestick patterns provide signals and warnings that a trend will end soon in the short term.
Tweezer
This is a condition where there are hammer & hanging man or inverted hammer & shooting star side by side. This clamping condition shows a strong reversal pattern. This is also a marker for traders to immediately close the position and ensure the profit already earned.
Morning star & evening star
This pattern is a combination of 3 pieces of candle stick forming a pattern of correction where the pattern is going on pulling between bullish and bearish is strong enough. In this pattern can be a powerful reversal signal, but be careful of the third candle that often occurs false signals where white and black candles do not have the same or almost the same size.
Three white soldiers & three black crows
The appearance of a succession of 3 bearish or bullish candlesticks in this sequence can be a strong signal, especially if these three appear in the consolidation phase that is moving sideways. This pattern will only be confirmed strongly if the third candlestick comes with conditions that are at least the same or may be longer than the second candlestick. Trend will be stronger if you appear marubozu on the third candlestick.
Munculnya kombinasi 3 candlestick bearish atau bullish yang berurutan ini bisa menjadi sinyal yang kuat, apalagi kalau ketiganya ini muncul pada fase konsolidasi yang sedang bergerak menyamping. Pola ini hanya akan terkonfirmasi kuat kalau candlestick ke tiga muncul dengan kondisi yang minimal sama atau bisa jadi lebih panjang dari candlestick kedua. Trend akan semakin kuat kalau muncul marubozu pada candlestick ke tiga. - See more at: http://brokerforex.com/cara-membaca-candlestick-pattern-dalam-trading/#sthash.JqgS7jXE.dpuf
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