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Pengertian Candlestick

The document discusses Japanese candlestick patterns and introduces three powerful patterns for analysis: bullish engulfing, bearish engulfing, and three candles pattern. Bullish engulfing indicates an upward reversal as the green candle fully covers the previous red candle. Bearish engulfing signals a downward reversal as the red candle covers the green candle. The three candles pattern predicts a trend reversal with three similarly sized candles without long shadows. The document recommends books on candlestick techniques and combining candlestick analysis with other indicators.

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Far Han
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127 views9 pages

Pengertian Candlestick

The document discusses Japanese candlestick patterns and introduces three powerful patterns for analysis: bullish engulfing, bearish engulfing, and three candles pattern. Bullish engulfing indicates an upward reversal as the green candle fully covers the previous red candle. Bearish engulfing signals a downward reversal as the red candle covers the green candle. The three candles pattern predicts a trend reversal with three similarly sized candles without long shadows. The document recommends books on candlestick techniques and combining candlestick analysis with other indicators.

Uploaded by

Far Han
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Japanese

candlesticks 

and three most
powerful patterns
of them
Introduction to
Japanese candlesticks
Many experienced traders agree the price itself is
the best indicator. But how can we analyze the price
chart and get information about the future market
movement, having only data about previous
changes? Let's turn to Japanese candles 

for help!

What can you learn


from Japanese
candlesticks?
Candles give much information about the price
movement: the opening and closing prices and 

the price minimum and maximum for the chosen
timeframe.

The range between the opening and the closing


price is called the candle's body. The wicks are
known as shadows. An upper shadow shows the
maximum price within the selected timeframe, 

and the lower one shows us a minimum price.

Upper shadow

Body

Lower shadow
What types of
candlesticks exist 

in the market?
We can divide all candles into three categories:

Green bullish candlesticks that indicate


an upward trend;

Red bearish candlesticks that indicate 



a downward trend;

Doji candlesticks, when the opening


and closing prices of the candle concur.

Bullish Doji Bearish


candlestick candlestick candlestick

If you want to include candlesticks in your analysis,


it is enough to learn a few most important patterns.
Bullish engulfing
The bullish engulfing triggers a reversal of the
downward trend as more traders enter the market
and drive prices up. The pattern involves two
candles, with the green candle fully covering the
body of the previous red one.
Bullish engulfing
Likewise, this pattern works for a bearish reversal. 

It appears during an uptrend and shows traders 

a signal to trade down. The pattern also involves 

two candles, with the red candle fully covering 

the body of the green one.
Three candles
It is a signal for a global trend reversal. Candles
should be approximately the same size and without
long shadows.
How to expand 

your knowledge 

of Japanese
candlesticks?
You can read more about candlesticks’ models 

in the book "Japanese candlestick charting
techniques" by Steve Nison, and in Thomas
Bulkowski's bestseller "Encyclopedia of chart
patterns".
How to improve 

a candlestick
analysis?
Of course, analyzing candles is more beneficial 

with additional factors that confirm the future
trend: support and resistance levels, the news, 

and instruments for technical analysis, such 

as a moving average, parabolic or stochastic.

Want to test one of the above


strategies? Then use a promo code 

and get +50% on your next deposit!

CANDLE

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