Tuesday, 25 June 2019

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The Candlesticks - Part 2

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4. Candle "Karakasa" (small real body) (*)

4.1 Red Karakasa (with lower long shadow, Doji pattern derived called "Hanged Man") (direction of the candle: Bullish)

The purchases mark the Maximum (2) slightly higher than the Opening (1), then sales are imposed and mark the Minimum (3) to then imposed purchases again and mark the Closing (4) below the opening (1) and a short distance from it. Is bullish if it occurs after a previous bearish trend.

Red Karakasa

4.2  Invested Red Karakasa (with long upper shadow, derived from Doji pattern called "hanging man" or "shooting star") (direction of the candle: bullish)

The purchases mark the Maximum (2) well above the Opening (1), then sales are imposed and mark the Minimum (3), there is a small bullish reaction marking the Closing (4) below the Opening (1) and a short distance from it. Is bullish if it occurs after a previous bearish trend.

4.3 Green Karakasa  (with lower long shadow, derived from Doji pattern called "hammer") (direction of the candle: Bearish)

Large sales mark the Minimum (2) well below the Opening (1), then the purchases are imposed and mark the Maximum (3) to then produced some sales that mark the Closing (4) above the Opening (1). Is bearish if it occurs after a previous bullish trend.

Green Karakasa

4.4 Invested Green Karakasa (with long upper shadow, derived from Doji pattern called "inverted hammer") (direction of the candle: Bearish)

Small sales mark the Minimum (2) below the Opening (1), then the purchases are imposed and mark the Maximum (3) to then impose sales and mark the Closing (4) above the Opening (1). Is bearish if it occurs after a previous bullish trend.

 Invested Green Karakasa

(*) The candles Karakasa arise when a fall or a increase major, and before closing, there is a shift in the trend. Size depends on the length of the shadows. One of the shadow is of great length, at least double of the body, and the other does not exist or, if necessary, is very small, having a length less than the body.

 

5. Candle "Spinning" (small real body) (*)

5.1 Red Spinning Top (with long shadows) (meaning of the candle: Undefined)

The purchases mark the Maximum (2) slightly higher than the opening (1) and then impose sales marking the Minimum (3) to then, imposed purchases again and mark the Closing (4) below the Opening (1).

Red Spinning Top

5.2 Green Spinning Top (with long shadows) (meaning of the candle: Undefined)

The sales mark the Minimum (2) slightly below the opening (1) and then purchases imposed by dialing Maximum (3) to then sales imposed again and mark the Closing (4) above the Opening (1).

Green Spinning Top

(*) The market is losing force and these candles warn us of the weakness of the trend. There is a tie between bulls and bears and there is a balance between supply and demand. These candles are especially important at points of maximum strength of the trend, either upward or downward. If an bullish trend prolonged appears behind a green candle, a Spinning top mean that the bulls are in difficulties to advance. On the contrary, if a downtrend prolonged appears, behind a large red candle, a Spinning top mean that the bears begin to have serious problems in their advance.

 

6. Candle "Doji" (virtually no real body or very small ) (*)

6.1 Doji (upper shadow twice longer than the lower shadow) (meaning of the candle: Indecision)

Candle that is formed when the Opening price (1) is followed by a Maximum (2) and Minimum (3) (or vice versa) and Close (4) occurs at the same point (or nearly the same) Opening (1). The length of the upper shadow - Maximum - (2) is almost twice the lower shadow - Minimum - (3). It is a indecision signal of the trend, but it does not necessarily change in trend. If you see a sideways market is irrelevant. if appears within a steep uptrend, behind a large green candle, could be warning us of the exhaustion of the trend, on the Otherwise, if it appeared in a downtrend, behind a big red candle, we would indicate a possible exhaustion.

Doji

6.2 Doji small (upper and lower shadow short and equal) (meaning of the candle: Indecision)

Candle that is formed when the Opening price (1) is followed by a maximum (2) and Minimum (3) (or vice versa) and Close (4) occurs at the same point (or nearly the same) Opening (1). The length of the upper shadow - Maximum - (2) and lower - Minimum - (3) are short and nearly equal. It is a sign of indecision of the trend. (for details see above).

 Doji small

6.3 Doji long legs (upper and lower shadow very long and almost equal) (meaning of the candle: Indecision)

Candle with Opening (1) and Close (4) identical or very similar, shadow upper - Maximum - (2) and lower - Minimum - (3) very long, almost equal in length.

It is a sign of indecision that means there is a tie between the bulls and bears. It is an important sign of change in trend. It needs a confirmation with a bearish candle-red-(when the previous trend is upward) or bullish-green (when the previous trend is bearish) to ensure that the change trend occurs.

Doji long legs

6.4 Gravestone Doji (Hakaishi) (long upper shadow and none or almost no low shadow) (meaning of the candle: In uptrend is bearish and downtrend bullish)

Candle with Opening (1) and Close (4) identical or virtually identical, with a very long upper shadow - Maximum - (2) and none or almost no lower shadow - Minimum - (3). It appears in a resistance after a strong upward trend of the market and the confirmation of the change of trend takes place by the appearance of a red candle. The longer the upper shadow, the stronger will the change in trend. Also can appear in downtrend what it would imply I change bullish, this option is much less probable than the first one.

Gravestone Doji

6.5 Dragonfly Doji (long lower shadow and none or almost no upper shadow) (meaning of the candle: In bearish trend is bullish and bullish trend is bearish)

Candle with Opening (1) and Close (4) identical or virtually identical, with a very long shadow lower - Minimum - (2) and none or almost no upper shadow - Maximum - (3). Appears in a support after a strong market downtrend and the confirmation of trend change produces by the appearance of a green candle. The longer the lower shadow, the stronger will the change in trend. Also can appear in uptrend what it would imply I change bearish, this option is much less probable than the first one.

Dragonfly Doji

(*) This term uses when the opening and the closing coincide, or virtually do disappearing therefore the actual body or, if any, is very small. The absence of said real body, shadows are those that define the possible types of dojis depending on their length and position of the opening and closure on the sail. The shadows are not equal nor too long.

Source: Traderpirata.com

Erick Gálvez
Author: Erick GálvezWebsite: http://www.asdforex..comEmail: This email address is being protected from spambots. You need JavaScript enabled to view it.
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