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Chapter 9, Part VII - Summary: Japanese Candlesticks and Patterns Sheet.

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, May 26, 2011.

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  1. Administrator

    Administrator Just Administrator :-)

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    Part VII. Japanese Candlesticks and Patterns Sheet. [​IMG]
    Commander in Pips: Ok, we've studied a very large part, dedicated to Japanese candlesticks, so I offer to make some summary and table to consolidate all the patterns you’ve studied into one place.

    [​IMG]

    Pipruit: Good idea, Sir.

    Commander in Pips:
    Candlestick properties:


    1. Any candlestick is based on four prices of trading period – open, high, low and close;

    2. The thick part of candlestick is called the “Body” and it could be hollow or filled.

    3. If close price is above the open one, i.e. price increases during this trading session – the candle has a hollow body (white or green, as a rule);

    4. If close price is below the open one, i.e. price decreases during this trading session – the candle has a filled body (black or red, as a rule);

    5. Thin lines, that are poking out from the body up and down call “Shadows”. They point to the high price (upper shadow) and the low price (lower shadow) of the trading period;

    6. The difference between the top of upper shadow and bottom of lower shadow shows the trading range of this period;

    7. Candles could have different bodies – long or short, or absence of body at all. Long bodies tell about strong activity either buyers (long white body) or sellers (long black bodies). Small bodies tell about shallow activity of participants in this trading period. A candle could have no body, if the open price equals the close price. This candle is called a “Doji”.

    8. Candles could form patterns that consist of 1-3 candles and could carry “Reversal”, “Continuation” or “Caution” functions. To look at patterns – just look at the table at the end of this lesson.
     
    #1 Administrator, May 26, 2011
    Lasted edited by : Feb 29, 2016
    Hamza Samiullah and fran alvarez like this.
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