Candle stick Kinds - Forex Vs Stock

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Wednesday, November 15, 2017

Candle stick Kinds

Two types of Candles

 1-Bearish
 2-Bullish

Bullish
             A white (empty body) represents a Bullish Pattern Candle. It is used/denotes when prices open near the low price and close near the period’s high price.


Bearish
             A black (filled body) represents a Bearish Pattern Candle. It is used/signifies when prices open near the high price and close near the period’s low price


how to read the Bullish Candlestick kinds.
                                                                       The Hammer is a Bullish Pattern if it appears after a significant downtrend. If the line occurs after a significant uptrend, it is called a Hanging Man. A small body and a long wick identify the Hammer. The body can be empty of filled in
 
                                                                                                                                                                     
The Pricing Line is a Bullish Pattern where the first candle is a long, Bear candle, followed by a long Bull candle. The Bull candle opens lower than the Bear's low, but closes more than halfway above the middle of the Bear candle's body.
A Bullish Engulfing Line is a patter strongly Bullish if it occurs after a significant downtrend. It may also serve as a reversal pattern. It occurs when a small Bearish candle is engulfed by a large Bullish candle.
The Morning Star is a Bullish Pattern signifying a potential bottom. The star indicates a possible reversal and the Bullish candle confirms this. The Star can be a Bullish or Bearish candle.
In a Bullish Doji Star, the star indicates a reversal and a Doji indicates indecision. This pattern usually indicates a reversal following an indecisive period. You should wait for a confirmation before trading a Doji Star.


How to read the Bearish Candlestick
                                                             A Long Bearish Candle occurs when prices open near the high and close lower, near the low.


The Hanging Man pattern is Bearish if it occurs after a significant uptrend. If this pattern occurs after a significant downtrend, it is called a Hammer. A Hanging Man is identified by small candle bodies and a long wick below the bodies, and can be either Bearish or Bullish.



Dark Cloud Cover is a Bearish Pattern that is more significant if the second candle's body is below the center of the previous candle's body.


How to read Neutral Candlestick
                                                    
Spinning Tops is a neutral pattern that occurs when the distance between the high and low, and the distance between the open and close, are relatively small


A Doji candle implies indecision. The open and close are the same.

The Harami pattern indicates a decrease in momentum. It occurs when a candle with a small body falls within the area of a larger body.


How to read the Reversal Candlestick

A Long-legged Doji often signifies a turning point. It occurs when the open and close are the same, and the range between the high and the low is relatively large.


The Dragonfly Doji also signifies a turning point. It occurs when the open and close are the same, and the low is significantly lower than the open, high and closing prices


A Gravestone Doji occurs when the open, close, and low prices are the same, and the high is significantly higher than the open, close and low prices. It also signifies a turning point


Stars indicate reversals. A Star is a candle with a small, real body that occurs after a candle with a much larger, real body where the real bodies do not overlap. The wicks may overlap.




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