Waverunner Wont Turn Over

Lesson 8 - Candlestick charts - Part 2

previous trends

an employer to qualify as a reverse pattern, there should be a prior trend to reverse. The Bulls need to be preceded by the Bears (a sellers' market previously had to be purchased). The direction of the trend can be determined by the use of trend lines, moving averages, or other aspects of technical analysis.

Hammer and Hanging Man

hammers as the hanged men were similar but the meanings are completely different, depending on previous price action. Both have small bodies, long strands down the leather or lack of (or very small) wicks at the top.

The figure below shows an example of Hammer and Hanging Man



Hammer
The pattern is a notice of change of upward trend (entry of the Bulls). So called because the price is being hammered down reaching its limit sales. Entering the Bulls took control of the market against the Bears and fail to finish the day in positive. Obviously this is a signal that must be accompanied by other technical analysis provided and we will see in the future.

The Hanged Man is a pattern of announcing the end of the uptrend Bulls losing ground to the Bears entered the market in a downtrend. But buyers are still strong enough to make the closing price near the opening. Buyers are signs of exhaustion ..

Inverted Hammer and Shooting Star

Inverted Hammer and Shooting Star also seem identical, but their meanings are opposites. Both have small bodies and long strands

The following figure shows an Inverted Hammer and Shooting Star


The Inverted Hammer occurs when the price has fallen and suggests the possibility of a turnaround. Buyers are trying to take control of the market and drive up the price, but vendors still have enough strength and make the price fall. But buyers were able to raise prices on something, and because the Bears were unable to reach a new day gives a negative signal exhaustion.

The Shooting Star would be contrary to Hammer, Los Osos attack strongly and the market are able to offset the Bulls, pushing back the price of its opening level. Signal a change in trend, which again should be subject to confirmation by other elements of technical analysis

Main Board Mv42v1.3 Manual

Lesson 7 - Candlestick charts - Part 1

recommend reading the Lesson 6 before considering this item.

candle charts became extremely popular in the 90s. These types of charts have their origins in Japan where they were commonly used for trading rice. Then it was used in the Japanese stock market, and then moved to the West.

As mentioned in the previous chapter the components of the graph (see previous chapter).

One of the main reasons it is so popular these graphics are the forms they take with regard to market performance, review some of them.

Activity (long and short candles)

When we mention the word activity means the number of people and amounts to be traded. Thus a period of activity there are few people as low amounts trading at the market and a period of high activity are many people and a lot of volume (amount) traded.

When the body of a candle is narrow means a day of low activity and a long body means high activity. In the chart below we see a period of high activity (large candles) and then a period of low activity (short candle).

Highlights long and short body

When we have the candlestick chart as shown in the figure means that buyers and sellers began balanced, then gave way some of them produced a great movement in the transactions, then equip forces returning to a situation similar to the original.

Indecision

Through the graphics you see indecision in the markets, this happens when the candles are also short and long strands, only the body is located exactly through the locks. The following is an example of a candle that shows the market indecision.

Marubozu

When the candlestick chart is Marubozu means no roving is, the body comprising all the wick. This status means a complete market decision to mark a trend. Closing prices as home fits the maximum and minimum and thus sets the trend

The following figure shows a candle in a state Marubozu:

Doji

The Doji candle type are those that the price Home is very similar to the price of forming a body extremely close, almost a line.

There are 4 types of Doji forms and are significant signs of change in trend when preceded by other forms of candles.



The first example is when we have a great rise in the prices given by a candle almost completely Marubozu (almost without a wick), then preceded by a Doji. We understand that there was a large buyer power (bulls) and sellers (bears) lost ground. But the next day the bears running counter force to the bulls giving a signal that the uptrend is over.