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Candle presentation 3

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Final version of candlestick presentation

Final version of candlestick presentation


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  • 1. Do your trading charts give you a headache?
  • 2. This is Mike. He’s lost thousands of dollars using
    the wrong charts.
    Sound familiar?
  • 3. Meet John. He’s
    made thousands of dollars in the market.
    What does John do differently?
  • 4. John uses Candlestickcharts to track stock prices.
  • 5. Candlestick charts were created in the 1700’s for tracking rice prices.
  • 6. Manuhisa Homma made a huge fortune with over 100 consecutive winning trades by using candlesticks!
  • 7. Candlestick charts are easier to read than bar charts.
  • 8. They also make it easier to tell whether the open or close price was higher.
  • 9. Candlesticks have 3 major parts
    Upper wick/shadow (buying pressure)
    Real body
    Lower wick/shadow (selling pressure)
  • 10. Bullish candlesticks have hollow bodies, showing that the closing price is higher than the opening price.
    High
    Close
    Open
    Low
  • 11. Bearish candlesticks have solid bodies, showing that the closing price is lower than the opening price.
    High
    Open
    Close
    Low
  • 12. There are many different types of candlesticks.
  • 13. Doji
    The open and close are very close together, creating a very small body.
    Represent indecision between Bulls and Bears
  • 14. DragonflyDoji
    Open and close are the same with long selling pressure.
  • 15. GravestoneDoji
    Open and close are the same with long buying pressure.
  • 16. Spinning Top Doji
    Small real bodies with equal buying and selling pressure.
  • 17. Hammer (Hanging Man)
    Shadow should be at least twice the height of the body.Signals a reversal after a downtrend.Control has shifted from sellers to buyers.
  • 18. Inverted Hammer (Shooting Star)
    Converse of the Hammer (Hanging Man).Signals a reversal after an up trend.Control has shifted from buyers to sellers.
  • 19. tells us what the market did, but doesn’t help us predict the future.
    A single candlestick
  • 20. Candlestick patterns can give us information about how prices are going to move.
  • 21. Some patterns tell us there will be a reversal.
  • 22. Dark Cloud CoverReversal signal after an up-trend
    Implies lower prices
    Strong white body on 1st Candle
    Strong filled body on the 2nd candle
    The close of the 2nd candle must be more than half-way downthe body of the first candle.
  • 23. Piercing Line Reversal
    Signal after a down-trend.
    Strong filled body on 1st candle.
    The 2nd candle must have a strong white body.
    The close of the 2ndcandle must be more than half-way up the body of the first candle.
  • 24. Engulfing PatternsOne bullish and one bearish candle.
    The 2nd candle must fully cover the 1st candle.
    Bullish or Bearish, according to the second candle.
  • 25. Morning StarBullish indicator after a downtrend
    Close of the 3rd candle should be in the top half of the 1st candle.
  • 26. Evening StarOpposite of a Morning Star Pattern
    Reversal of an uptrend
    The close of the 3rd candle should be in the lower half of the 1st candle.
  • 27. Doji Star
    Bearish reversal of an uptrend
    Weaker than the Evening Star
    Requires confirmation with next candle closing in the bottom half of the 1st candle.
  • 28. Shooting Star Pattern
    Bearish reversal of an uptrend.
    Similar to Doji Star Pattern.
    2nd candle is a Shooting Star.
    Requires confirmation with next candle closing in the bottom half of the 1st candle.
  • 29. Upside Gap and 2 Crows
    Signals reversal of an uptrend.
    Gap between 1st (white) candlestick and 2nd (filled) candlestick.
    3rd candlestick is also filled and engulfs the 2nd candlestick without filling the gap.
  • 30. Harami
    Large candlestick followed by a small candlestick of the opposite color/direction
    Signals reversal of current trend
  • 31. Other candlestick patterns tell us the current trend will continue.
  • 32. Gaps and Windowsare a type of candlestick pattern where there is a gap between two adjacent candlesticks.
  • 33. Upside Gap
    Occurs in an uptrend.
    Gap between the two white candlesticks is not filled by the shaded candlestick.
    Uptrend will continue.
  • 34. Downside Gap
    Occurs in a downtrend.
    Gap between the two filled candlesticks is not filled by the white candlestick.
    Downtrend will continue.
  • 35. Rising Three Methods
    Indicated continuation of uptrend.
    Powerful white candle followed by 3-4 small descending filled candles.
    Low volume.
    Final part is another strong white candle with a new high price.
  • 36. Indicates continuation of a downtrend.
    Opposite of Rising Three Methods.
    Powerful filled candle followed by 3-4 small ascending white candles.
    Low volume.
    Final part is another strong filled candle with a new low price.
    Falling Three Methods
  • 37. As always, don’t forget
    the 3 C’s
    ContentWhat does the candlestick or pattern tell you?ClarityIs the candlestick pattern clear?ConfirmationDo other indicators confirm what the candlestick chart is telling you?
  • 38. Resources
    Websites
    www.IncredibleCharts.com
    www.StockCharts.com
    www.HotCandleCharts.com
    www.CandleCharts.com
    www.HardRightEdge.com
    Books
    Technical Analysis – PRING
    Candlesticks - Steve Nision