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Tutorial - How to use candlestick pattern in forex trading. (Part 5)

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Three Black Crows

A bearish reversal pattern consisting of three consecutive black bodies where each day closes near below the previouslow, and opens within the body of the previous day.
Three Black Crows
Three White Soldiers
A bullish reversal pattern consisting of three consecutive white bodies, each with a higher close. Each should open within the previous body and the close should be near the high of the day.
Three White Soldiers
Doji
Doji are important candlesticks that provide information on their own and also feature in a number of important patterns. Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns. Any bullish or bearish bias is based on preceding price action and future confirmation. The word "Doji" refers to both the singular and plural form.

Bullish doji star
A "star" indicates a reversal and a doji indicates indecision. Thus, this pattern usually indicates a reversal following an indecisive period. You should wait for a confirmation (e.g., as in the morning star,) before trading a doji star. The first line can be empty or filled in.
Bullish doji star

Bearish doji star

A star indicates a reversal and a doji indicates indecision. Thus, this pattern usually indicates a reversal following an indecisive period. You should wait for a confirmation (e.g., as in the evening star illustration) before trading a doji star. The first line can be empty or filled in.
Bearish doji star

Evening star

This a bearish top reversal pattern and counterpart to the Morning Star. Three candlesticks compose the evening star, the first being long and white. The second forms a star, followed by the third, which has a black real body that moves sharply into the first white candlestick.
Evening star
Evening Doji star
This is a doji star in an uptrend followed by a long, black real body that closed well into the prior white real body. If the candlestick after the doji star is white and gapped higher, the bearishness of the doji is invalidated.
Evening doji star

Morning Star

This is a bullish bottom reversal pattern. The formation is comprised of 3 candlesticks. The first candlestick is a tall black real body followed by the second, a small real body, which gaps (opens), lower (a star pattern). The third candlestick is a white real body that moves well into the firstperiod's black real body. This is similar to an island pattern on standard bar charts.
Morning star
Morning Doji star
This a doji star in a downtrend followed by a long, white realbody that closes well into the prior black real body. If the candlestick after the doji star is black and gapped lower, thebullishness of the doji is invalidated.
Morning doji star



1 comments:
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ijad said...
August 26, 2008 at 12:20 AM  

salam... tak nak join gath ke...

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