Key Candle Patterns for Trading Success
Translated by
ScribdTranslationsKey Candle Patterns for Trading Success
Translated by
ScribdTranslationsThere are many patterns, these are
only a few
CANDLE PATTERNS
REVERSAL PATTERNS.
oALCISTAS
HAMMER
It is not a pattern, it is an indication because patterns consist of
of two or more candles.
The hammer means that if we have a
bearish momentum for example and we see this type of candle
Can you give us a confirmation that there will be one?
a correction, that is, the expected address or
potential is going to be bullish.
If we are analyzing a graph, and in this we have
a Fibonacci or a support area, or resistance, and
we see that the price is making the rejection
just in that area, and in the same it is doing
the hammer is a good indicator for a purchase,
because there is a great probability that the price
suba.
it is not necessarily a change in trend, but yes
it could be a correction in the trend that is going.
It must be at the end of an impulse.
This type of candles needs to be confirmed with something else, either a support,
resistance, Fibonacci, Fibocanal or some type of indicator.
2. INVERTED HAMMER
It is also upward like the normal hammer, although the
put this up, that is to say it is also a pattern
ascendant.
Its meaning is the same, it indicates a possible
correction in the upward trend.
This type of candles needs to be confirmed with something else, whether it's a support,
resistance, Fibonacci, Fibocanal or some type of indicator.
3. ENVELOPE OR ENGULFING
The biggest candle, that is, the second candle will cover the
first. On some occasions, it will not only cover the
first, but also to the second, or to the third, this would be
an enveloping candle with a lot of strength which would be more
confirmation.
it indicates a possible upward movement, but also
it can be downward when the second candle instead of being
bullish is bearish.
This type of candles needs to be confirmed with something else, whether it be a support,
resistance, Fibonacci, Fibocanal or some type of indicator.
[Link]
It means that the first candle (in this case the bearish one) closed at
a point and that in the closing of that first candle, there is a gap, a
space, and after this open the second one (in this case the
green), that is, the opening price of the second candle is not
the closing price of the first
To be penetrating, it must have certain things:
two candle pattern
the closing price of the second candle has to be
above the midpoint of the first candle
a gap is generated
It indicates that if we have a bearish momentum, there is a signal of
reversal, that is to say, the price is going to start to rise, and the opposite.
if the momentum is bullish
This type of candles need to be confirmed with something else, either a support,
resistance, Fibonacci, Fibocanal or some type of indicator.
4
5. MORNING STAR OR DAWN
When they are generated, they usually provide a good entry.
and there is no need to wait for confirmation.
It is basically a signal that there is going to be a change of
movement.
It is a three candle pattern.
It indicates to us that at the bottom of the candles that
they are marked there is a strong area that has been
rejected and does not want to break.
For this pattern to be valid, the second candle is a Doji.
(indecision candle), and the third candle of the pattern has
to be more than half of the first candle of the circle
What is the bearish candle, for the above, it is important
wait for the third candle to close to be able to see that the
the pattern is fully met.
This pattern has to be at the end of a thrust, right?
It can be neither in the middle nor in a quarter.
6. THREE WHITE SOLDIERS
It doesn't mean that you need to have three bullish candles.
Anyone. The candles have to be bullish but the most
It is important that the three candles have very little.
mecha or zero mechasen total in order to fulfill with
the pattern.
This is a very strong signal, so it is a great
confirmation, however, it is necessary to understand that not
necessarily fair that the pattern is given, the price will
continuing to rise immediately, it can have ups and downs.
(it is recommended to operate above the size of the candle)
BASS PLAYERS
HANGED MAN
It is basically a hammer, but the candle is bearish.
In order for it to be important, it is necessary that
this is at the end of the bullish impulse, otherwise, it does not have
validity.
Indicates that an important level has already been reached therefore
that important level can generate a
rejection of the decrease.
This type of candles needs to be confirmed with something else.
2. Shooting Star
It is an inverted hammer that forms in the
bullish trend
It generally has a red body
In this case, we are waiting for the price
below, not necessarily following the
shooting star, it could be two candles later, in
the closing of the third candle, or of the second.
This type of candles needs to be confirmed with something else.
[Link] ENVIRONMENT
Unlike the bullish envelope, this occurs
at the end of a bullish impulse.
The first bearish candle must cover
completely the previous candle, in some
several candle cases.
it indicates an impossible downward movement
This type of candles needs to be confirmed with something else.
4. STAR OF DUSK OR NIGHTFALL
It's like the morning star but lower.
Three candle pattern
I have an upward impulse, a candle is generated.
bullish, followed by a Doji (indecision candle),
followed by a bearish candle that at least
covers half of the body of the first candle
(the bull).
it indicates a high probability that the
bullish momentum may have come to an end and may go to
there will be a downward correction.
This pattern has to be at the end of a push.
5. THREE BLACK CROWS
Like the three white crows, it is a
followed by three candles with a lot of body and
very few streaks.
Three candle pattern.
It indicates to us that the bullish momentum has reached its
Finally, there may be a setback.
Es unbuen indicativo de que se puede dar un
movement in the downward direction.
CONTINUATION PATTERNS
[Link] ALCAST TRAINING.
In the triple bullish formation, the price comes
rising, throw three candles down, that is, in
the opposite direction to the impulse, what leads us
indicates that there is a high probability that
the price continues to rise.
the three bearish candles cannot have
big mechas, they don't have to have bodies
large, they have to be similar bodies.
7. TRIPLE BEARISH PATTERN
Basically the price is coming down, it
they form the three candles upwards which do not
they cover the previous candle.
The candles cannot have wicks
big ones, they don't have to have bodies
big ones, they have to be similar bodies.
NOTE: when there are two Dojis, the price can break out to the upside or to the downside, because
what you need to rely on with technical analysis to be able to determine what is going to
to happen.
Vector: there are three consecutive Dojis, when we encounter this if we have a good
technical analysis we can predict in which direction the price is going to explode (provides a
quite clear movement), then if I have a vector and technical analysis tells me
What's going up, then it's time to make a purchase. In this case, it's better to enter.
before the breakout happens, that is, before the candle appears after the Doji
because if we wait for it to break or move, on some occasions the
the movement is large and requires some correction before making the
so, if we decide to operate waiting for the close of the candle that makes the
breakup or split is better to operate at low risk because sometimes it
It will give, but in others the correction may occur and the upward movement may continue.
for example.