NOOR BINARY TRADERS 4 CHAPTERS 48T INFORMATION 28° CHART INTRODUCTION 3°” CHART INFORMATION 4™ CHART PATTERNS 1ST IS CANDLES INFORMATIONHie Upper shadow eee Upper Shadow Real Body feal Body LowerShadow What is candlestick charts? Candlestick charts were originated in Japan over 100 years before the West had developed the bar charts and point-and-figure charts. In the 1700s, a Japanese man known as Homma discovered that as there was a link between price and the supply and demand of rice, the markets also were strongly influenced by the emotions of traders. A daily candlestick charts shows the security's open, high, low, and close price for the day. The candlestick’s wide or rectangle partis called the “real body” which shows the link between opening and closing prices. This real body shows the price range between the open and close of that day's trading.The thin vertical lines above and below the real body is knowns as the wicks or shadows which represents the high and low prices of the trading session. The upper shadow shows the high price and lower shadow shows the low prices reached during the trading session. Before we jump into learning about different candlestick charts, there are few assumptions which need to be kept in mind that are specific to the candlestick charts. Strength is represented by a bullish or green candle and weakness by a bearish or red candle. One should ensure that whenever they are buying it is a green candle day and whenever they are selling, ensure that it’s a red candle day. The textbook definition of a patterns states certain criteria, but one should state that there could be minor variations to the pattern depending on certain market conditions.When the real body is filled, black or red then it means that the close is lower than the open and is known as the bearish candle. It shows that the prices opened, the bears pushed the prices down and closed lower than the opening price. If the real body is empty, white or green then it means that the close was higher than the open known as the bullish candle. It shows that the prices opened, the bulls pushed the prices up and closed higher than the opening price. The thin vertical lines above and below the real body is knowns as the wicks or shadows which represents the high and low prices of the trading session. The upper shadow shows the high price and lower shadow shows the low prices reached during the trading session.Before we jump into learning about different candlestick charts, there are few assumptions which need to be kept in mind that are specific to the candlestick charts. Strength is represented by a bullish or green candle and weakness by a bearish or red candle. One should ensure that whenever they are buying it is a green candle day and whenever they are selling, ensure that it’s a red candle day. The textbook definition of a patterns states certain criteria, but one should state that there could be minor variations to the pattern depending on certain market conditions. One should look for a prior trend. If you are looking at a bullish reversal pattern, then the prior trend should be bearish and if you are looking for a bearish reversal pattern then the prior trend should be bullish.First Candle Second Candle Open Closed above 50% of first Close Opened gap up A ore gap down Third Candle Piercing Pattern(reversal) Piercing pattern is multiple candlestick chart pattern that is formed after a downtrend indicating a bullish reversal. It is formed by two candles, the first candle being a bearish candle which indicates the Neutral of the downtrend. The second candle is a bullish candle which opens gap down but closes more than 50% of the real body of the previous candle which shows that the bulls are back in the market and a bullish reversal is going to take place.Little to no upper Cose High a “a Hi Open Open Close What is Bearish patterns? Bearish Reversal candlestick patterns indicate that the ongoing uptrend is going to reverse to a downtrend. Thus, the traders should be cautious about their long positions when the bearish reversal candlestick patterns are formed.‘Open g Hammer(reversal) Hammer is a single candlestick pattern that is formed at the end of a downtrend and signals bullish reversal. The real body of this candle is small and is located at the top with a lower shadow which should be more than twice the real body. This candlestick chart pattern has no or little upper shadow. The psychology behind this candle formation is that the prices opened and sellers pushed down the prices.What is Bullish patterns? Bullish Reversal candlestick patterns indicate that the ongoing downtrend is going to reverse to an uptrend. Thus, the traders should be cautious about their short positions when the bullish reversal candlestick chart patterns are formed.Same low Three Inside Up(reversal) The Three Inside Up is multiple candlestick pattern which is formed after a downtrend indicating bullish reversal. It consists of three candlesticks, the first being a long bearish candle, the second candlestick being a small bullish candle which should be in the range the first candlestick. The third candlestick should be a long bullish candlestick confirming the bullish reversal. The relationship of the first and second candlestick should be of the bullish harami candlestick pattern.Open Close Close White Marubozu(Neutral) The White Marubozu is a single candlestick pattern that is formed after a downtrend indicating a bullish reversal. This candlestick has a long bullish body with no upper or lower shadows which shows that the bulls are exerting buying pressure and the markets may turn bullish. At the formation of this candle, the sellers should be caution and close their shorting position.Close Open Close Open Open Three White Soldiers(reversal) The Three White Soldiers is a multiple candlestick pattern that is formed after a downtrend indicating a bullish reversal. These candlestick charts are made of three long bullish bodies which do not have long shadows and are open within the real body of the previous candle in the pattern.Open The Morning Star(reversal) The Morning Star is multiple candlestick charts pattern which is formed after a downtrend indicating bullish reversal. It is made of 3 candlesticks, first being a bearish candle, second a Doji and the third being a bullish candle. The first candle shows the Neutral of the downtrend, the second candle being a doji indicates indecision in the market, and the third bullish candle shows that the bulls are back in the market and reversal is going to take place."hl ’ Bullish Engulfing(reversal) Bullish Engulfing is a multiple candlestick chart pattern that is formed after a downtrend indicating a bullish reversal. It is formed by two candles, the second candlestick engulfing the first candlestick. The first candle is a bearish candle that indicates the Neutral of the downtrend. The second candlestick is a long bullish candle that completely engulfs the first candle and shows that the bulls are back in the market.Bearish Harami(reversal) The Bearish Harami is multiple candlestick pattern which is formed after the uptrend indicating bearish reversal. It consists of two candlesticks, the first candlestick being a tall bullish candle and second being a small bearish candle which should be in the range of the first candlestick chart. The first bullish candle shows the Neutral of the bullish trend and the second candle shows that the bears are back in the market.Spinning Top(neutral) The spinning top candlestick pattern is same as the Doji indicating indecision in the market. The only difference between spinning top and doji is in their formation, the real body of the spinning is larger as compared to Doji.Shooting Star(reversal) Shooting Star is formed at the end of the uptrend and gives bearish reversal signal. In this candlestick chart the real body is located at the end and there is long upper shadow. It is the inverse of the Hanging Man Candlestick pattern. This pattern is formed when the opening and closing prices are near to each other and the upper shadow should be more than the twice of the real body.Falling Three Methods (Neutral) The “falling three methods” is a bearish, five candle Neutral pattern which signals an interruption, but not a reversal, of the ongoing downtrend. The candlestick pattern is made of two long candlestick charts in the direction of the trend i.e downtrend at the beginning and end, with three shorter counter-trend candlesticks in the middle. The candlestick pattern is important as it shows traders that the bulls still do not have enough power to reverse the trend.Rising Three Methods (Neutral) The “rising three methods” is a bullish, five candle Neutral pattern which signals an interruption, but not a reversal, of the Ongoing uptrend. The candlestick pattern is made of two long candlesticks in the direction of the trend i.e uptrend in this case. at the beginning and end, with three shorter counter-trend candlesticks in the middle. The candlestick pattern is important as it shows traders that the bears still do not have enough power to reverse the trend.Mat-Hold (Neutral) A mat hold pattern is a candlestick formation indicating the Neutral of a prior trend. There can be either bearish or bullish mat hold patterns. A bullish pattern begins with a large bullish candle followed by a gap higher and three smaller candles which move lower. These candles must stay above the low of the first candle. The fifth candle is a large candle that moves to the upside again. The pattern occurs within an overall uptrend.ore, — = OPEN - * CLOSE Doji (reversal / neutral) Doji pattern is a candlestick pattern of indecision which is formed when the opening and closing prices are almost equal. It is formed when both the bulls and bears are fighting to control prices but nobody succeeds in gaining full control of the prices. The candlestick pattern looks like a cross with very small real body and long shadows.Opening and closing prices are almost same. Three Outside Down(reversal) The Three Outside Down is multiple candlestick pattern which is formed after an uptrend indicating bearish reversal. It consists of three candlesticks, the first being a short bullish candle, the second candlestick being a large bearish candle which should cover the first candlestick. The third candlestick should be a long bearish candlestick confirming the bearish reversal.Upside Tasuki Gap (Neutral) It is a bullish Neutral candlestick pattern which is formed in an ongoing uptrend. This candlestick pattern consists of three candles, the first candlestick is a long-bodied bullish candlestick, and the second candlestick is also a bullish candlestick chart formed after a gap up. The third candlestick is a bearish candle that closes in the gap formed between these first two bullish candles.Tweezer Top(reversal) The Tweezer Top pattern is a bearish reversal candlestick pattern that is formed at the end of an uptrend. It consists of two candlesticks, the first one being bullish and the second one being bearish candlestick. Both the tweezer candlestick make almost or the same high. When the Tweezer Top candlestick pattern is formed the prior trend is an uptrend. A bullish candlestick is formed which looks like the Neutral of the ongoing uptrend.Downside Tasuki Gap (Neutral) It is a bearish Neutral candlestick pattern which is formed in an ongoing downtrend. This candlestick pattern consists of three candles, the first candlestick is a long-bodied bearish candlestick, and the second candlestick is also a bearish candlestick formed after a gap down. The third candlestick is a bullish candle that closes in the gap formed between these first two bearish candles.