There are lots of candlestick patterns but there are just several that you unquestionably ought to be familiar with.
These candlestick patterns are more practical once you comprehend what is happening in each pattern.
Candlesticks need to be combined with other forms of technical analysis to actually be helpful. For instance, when you see one of these candlestick patterns on a daily chart, move down to the hourly stock chart. Does the hourly chart concur with your expectations on the daily chart? Has the MACD gone above the 0 line? If so, then the probability of a reversal improve.
Bullish Engulfing: This is everyones darling candlestick pattern. This pattern consists of two candles. The initial day is a narrow range candle that closes lower for the day. The sellers are still in control of the stock but because it is a tight range candle and volatility is low, the sellers are not really forceful. The second day is a wide range candle that “engulfs” the body of the first candle and closes near the top of the range. The bulls have overwhelmed the sellers (demand is greater than supply).
Bullish Kicker: The "kicker" is one utterly great candlestick pattern. The trouble is that it is rarely witnessed but when it does appear, it is one of the more accurate candlestick patterns you will see. The stock is moving down for 3 or more days and the bears are firmly in control. Then, on the next day, the stock gaps open above the previous days high and close. This completely surprises the bears and forces them to cover their shorts as new investors pile in on the long side.
The Doji: The "doji" is a nonaligned pattern. It is possibly the most well-known candlestick pattern. The stock opens up and goes nowhere during the day and closes right at or near the opening price. This represents indecision and causes investors to doubt the existing trend. This can frequently produce reversals in the opposite direction.
There are lots of candlestick patterns but there are just several that you unquestionably ought to be familiar with.
These candlestick patterns are more practical once you comprehend what is happening in each pattern.
Candlesticks need to be combined with other forms of technical analysis to actually be helpful. For instance, when you see one of these candlestick patterns on a daily chart, move down to the hourly stock chart. Does the hourly chart concur with your expectations on the daily chart? Has the MACD gone above the 0 line? If so, then the probability of a reversal improve.
Bullish Engulfing: This is everyones darling candlestick pattern. This pattern consists of two candles. The initial day is a narrow range candle that closes lower for the day. The sellers are still in control of the stock but because it is a tight range candle and volatility is low, the sellers are not really forceful. The second day is a wide range candle that “engulfs” the body of the first candle and closes near the top of the range. The bulls have overwhelmed the sellers (demand is greater than supply).
Bullish Kicker: The "kicker" is one utterly great candlestick pattern. The trouble is that it is rarely witnessed but when it does appear, it is one of the more accurate candlestick patterns you will see. The stock is moving down for 3 or more days and the bears are firmly in control. Then, on the next day, the stock gaps open above the previous days high and close. This completely surprises the bears and forces them to cover their shorts as new investors pile in on the long side.
The Doji: The "doji" is a nonaligned pattern. It is possibly the most well-known candlestick pattern. The stock opens up and goes nowhere during the day and closes right at or near the opening price. This represents indecision and causes investors to doubt the existing trend. This can frequently produce reversals in the opposite direction.
There are lots of candlestick patterns but there are just several that you unquestionably ought to be familiar with.
These candlestick patterns are more practical once you comprehend what is happening in each pattern.
Candlesticks need to be combined with other forms of technical analysis to actually be helpful. For instance, when you see one of these candlestick patterns on a daily chart, move down to the hourly stock chart. Does the hourly chart concur with your expectations on the daily chart? Has the MACD gone above the 0 line? If so, then the probability of a reversal improve.
Bullish Engulfing: This is everyones darling candlestick pattern. This pattern consists of two candles. The initial day is a narrow range candle that closes lower for the day. The sellers are still in control of the stock but because it is a tight range candle and volatility is low, the sellers are not really forceful. The second day is a wide range candle that “engulfs” the body of the first candle and closes near the top of the range. The bulls have overwhelmed the sellers (demand is greater than supply).
Bullish Kicker: The "kicker" is one utterly great candlestick pattern. The trouble is that it is rarely witnessed but when it does appear, it is one of the more accurate candlestick patterns you will see. The stock is moving down for 3 or more days and the bears are firmly in control. Then, on the next day, the stock gaps open above the previous days high and close. This completely surprises the bears and forces them to cover their shorts as new investors pile in on the long side.
The Doji: The "doji" is a nonaligned pattern. It is possibly the most well-known candlestick pattern. The stock opens up and goes nowhere during the day and closes right at or near the opening price. This represents indecision and causes investors to doubt the existing trend. This can frequently produce reversals in the opposite direction.
Stocks Above I Currently Hold In My Own Trading Account: Long LIFE
Guerilla Trader Quote
“Buy High and Sell Higher: A good goal for the guerilla trader. This goal is more reasonable and realistic than buying low and selling high, because making many small gains in well-established stocks is usually easier than making one or two huge gains in small, unknown stocks.”
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