Understanding Candlesticks

Understanding Candlesticks

Lesson 1: Candlesticks

Candlestick trading is a very powerful tool in technical analysis and it provides great sentiment, market condition insights, signal strength changes, and price reversals.

Lesson 2: Doji Candlestick in Forex

Doji Candlestick has opening and closing price and it looks like a cross, inverted cross or plus sign and it represents in a decision in the market.

Lesson 3: Marubazu Candlestick in Forex

Marubazu is the exact opposite of Doji Candlestick and it represents total conviction about the price direction.

Lesson 4: Hammer and Hanging Man Candlesticks

Hammer is a bullish reversal signal and can be found at the lower trend on the chart while Hanging Man represents a potential reversal that can be found at the uptrend.

Lesson 5: Shooting Start and Inverted Hammer Candlestick

Shooting Star is a bearish reversal signal while an Inverted Hammer is often considered as a bullish reversal signal. It has a small real body, a very small or no lower shadow and a long upper shadow while Inverted.

Lesson 6: Bullish piercing pattern

The Bullish piercing patter is a double candlestick reversal signal with a bullish pattern, and it has two candlesticks. First Candle, Long Bearish Candle and Second, Long bullish candle close above the midpoint of the first candle.

Lesson 7: Dark Cloud Cover pattern

The Dark Cloud Cover pattern is a two candlesticks bearish reversal pattern. In First Candle, forms are long bull patterns and Second, a long bear candle that closest below the middle point of the first candle.

Lesson 8: Bullish and Bearish engulfing patterns

The Bullish engulfing patterns and Bearish engulfing patterns are opposites. See why they’re opposites and what are their differences by watching the video.

Lesson 9: Tweezer Tops and Bottoms

A Tweezer Tops is a bearish reversal signal that can only see uptrend and Tweezer Bottoms is a bullish reversal signal. The best thing about the Tweezer Tops and Bottoms is the signal clearly shows strong Support and Resistance.

Lesson 10: Morning and Evening Star Patterns

The Morning Star is the three-candlestick bullish reversal signal. First, a Long Bearish candle, Second, a small candle and a perfect Doji, and Third, a long Bullish candle. The other side of the trend is known as the opposite signal known as the Evening Star. First, a Long Bullish candle, Second, a small and represents decision and Third, a Long Bearish candle.

Lesson 11: 3 White Soldiers 3 Black Crows

The 3 White Soldiers is the signal for a bullish reversal pattern and the 3 Black Crows is the signal for a bearish reversal pattern.

Lesson 12: 3 Inside Up 3 inside down pattern

The 3 Inside Up is a bullish reversal pattern depicted by 3 candlesticks and can be located at the downtrend and the 3 Inside Down is the opposite of 3 Inside Up. See how it works by watching the video.

Lesson 13: Rising and Falling Three Methods

The Rising and Falling Three Methods consists of five candlestick patterns. See how it works by watching the video.