Trading in the financial markets is not a venue for the timid or for someone that is uneducated in technical analysis. One way of increasing your chances of profitability in the financial markets is acquiring knowledge in candlestick chart patterns. Candlestick charts have a long history and it has been said that rice traders in eighteenth century Japan used candlestick charting. Applying candlestick charts to stock trading and viewing past trading history of stocks, can give the stock trader an idea of what the stock may likely do in the future.
Individual candlesticks on a stock chart are unique in shape. The body of the candle is different each day depending on whether the stock closed up or down for the day.
If the stock closed up for the day, the color of the candle will be white or light in color in most cases depending on what setting the stock trader has chosen. Also, the candle body is wide with the upper portion of the candle showing where the stock closed on the day and the bottom showing where the stock opened in the trading session. It should be noted that often times there will be thin lines coming from the bottom and top of the candlesticks, but not always. These thin lines are called shadows and show the range in which the stock traded during the day.
In the case of a shadow on the top of a white candlestick, the shadow shows the high of the day that the stock traded during the market session. A shadow at the bottom of the candlestick would show the lowest point that the stock traded during the day. When a stock has a down day, the candlestick will usually be red or a dark color, again depending on the stock traders preference. The same applies for a down day candlestick with the exception that the bottom of the candlestick will show where the stock closed for the day and the upper candlestick will show where the stock opened on the day, the reverse of a white candlestick.
Candlesticks will vary in length depending on price movement during the trading session for each particular day. On days when a stock is moving higher, the stock will show a long white body since the buying pressure pushed the stock higher. On down days where traders and investors are selling, the candlestick represents the sell off with a long red or dark candlestick. Long white candlesticks show buying pressure and long red candlesticks show selling pressure.
Short and fat candlesticks show that a war was being fought during the session between buyers and sellers with no real winner since the price did not change significantly during the session. Also, if there was no candlestick body and only a flat line with shadows on the top and bottom of the straight line, this is called a doji. In some cases the doji appears when a change of trend is about to take place with the stock. The flat horizontal line with no candlestick body represents the struggle that took place during the trading session. The shadows on the top and bottom of the horizontal line represent the high and low during the session. When the doji appears, the following trading session may show that the stock is reversing direction and going the opposite direction of the trend in previous sessions.
Learning to read and understand candlestick charts can unlock a wealth of information about stocks, revealing their past history and what they may do in the future. Reading a candlestick chart is akin to a commander of an army receiving reports from the front lines of a battle, showing the daily struggle between his army and the opposing army. On days when the candlestick is long and white, the buyers reigned supreme. On days when the candlestick is long and red, the sellers won the day. On days when the candlestick is short or non-existent, the battle was a draw with no clear winner.
Candlesticks and their patterns are powerful indicators that can help a trader decide entry and exit points when trading stocks. They can also help in removing the emotion when trading. Emotion tends to remove rational thought and usually causes the trader to make unwise decisions that create losses. Candlestick charting is a tool that every stock trader and investor should have in their arsenal.
How to read candlestick charts
|
|
Cambridge Cambridge Square (Square Base) 3797 – 2 1/8 Single Light Candlestick (3797 67) … |
|
|
Wrought Iron, Swirl Design, Hammered Candlestick Holders $21.95 Swirl design, hand-hammered wrought iron candlestick holders. Largest is 5 3/8″ X 5 3/8″ X 19 1/4″ high; Smallest is 4 1/2″ X 4 1/2″ X 13 1/4″ high; for 1 1/2″ diameter candles (not included) EXCLUSIVE – means this item was specially made for this product line. Sold as a pair…. |
|
|
The history of the seven-branched candlestick: Paper read before the British and American Archæological Society of Rome on Tuesday, February 11th, 1913 … |
|
|
Lara’s Bulk Wood Candlestick 6 3/4 5pc $17.24 Lara’s Bulk Wood pieces are unfinished, solid wood. They are great for painting and staining, and you can make endless projects by using several different individual parts to make unique and fun new creations! Warning: These are not toys. Not intended for children under the age of 8. Candlestick 6 3/4″ 5pc |
|
|
Fiskars Craft Punch Border Corner Read Between The Vines $16.99 Fiskars Craft Punch Border- Create perfect borders everytime! Fiskars border punches come in a variety of designs. They have on oversized lever which makes them easy to depress. They also have an alignment grid and design silhouette so you can create a continuous border on any size paper. Perfect for paper crafts, scrapbooking and more. Corner Read Between The Vines- With this punch you can create perfect borders and corners, or combine them to create seamless frames. This punch has a vine pattern accented with a small flower. |
|
|
Border & Corner Punch: Read Between The Vines – Limited Time 20% Off Sale! Price shown reflects discount. $14.94 Border & Corner Punches gives you the freedom to make a continuous frame of any size, or continuous decorative borders and corners! The alignment grid printed on the punch base makes it easy to create a border simply by lining up the punched out area of your paper with the design on the base. |
|
|
EK Jolee’s Boutique Large Halloween Potions $3.49 Let these terrific stickers enhance your scrapbook pages and crafts. These unique handmade stickers are decorated with beads, foils, fabrics and wire, or simply made 3-D with die-cut shapes or acrylic covering. So whether you’re wanting characters, sports, destination, seasons, holidays or more, you will find them in this wonderful collection. Ages 3 and up. Large Halloween Potions- Package contains 7 stickers, an old house, a witch’s hat, a cauldron, a candlestick, a bat in a cage, a skull with book and candle and a bottle with an eye. |
|
|
KODAK P20 Zoom Flash $149.95 Enhance your picture taking experience with the KODAK P20 Zoom Flash. The bounce head allows images to have a more natural light affect; the automated zoom gives greater flash coverage; the intelligent flash system can read camera setting information through the hot shoe and react accordingly. |
|
|
Burton Hot Stick Iron – 110V $47.95 The Burton Hot Stick Snowboard Waxing Iron is a highly portable waxing iron that gives you professional-grade power. Features: High-powered Portable Easy-to-read three-temperature calibrated settings ideal for all waxes Square shape for even waxing coverage Flat sole plate heating element for even waxing coverage Ergonomic design and exceptional performance Soft grip handle Burton products are available only for shipment within the United States. |
|
|
Ronix Thumb-Bolt Mounting Hardware 2008 $19.95 Ronix Thumb-Bolt Mounting Hardware: Extra, extra, read all about it??? don???t get caught without some backup doohickeys. |
|
|
Hotronic USA Hotronic M4 Power Plus Battery $62 The Hotronic m4 PowerPlus Battery is Hotronics most powerful battery. This unit is fully compatible with all prior Hotronic heating elements so you do not have to reinstall any elements. It requires the new m3/m4 charger. Features: Powered by high-capacity, cold-temperature operation, NiMH cells. Four (4) temperature-duration settings. Settings adjusted by easy to use, push-button controls. Easy-to-read battery pack LEDs indicate setting selected and power on/off. Battery packs easily attach to secure area of footwear. Battery packs m4 contain four (4) cells for extended duration. NiMH cells do NOT have “memory effect” and do NOT require fully discharging before fully recharging. |
|
|
Hotronic USA Hotronic M3 Power Plus Battery $52 The Hotronic m3 PowerPlus Battery is Hotronics most compact battery. This unit is fully compatible with all prior Hotronic heating elements so you do not have to reinstall any elements. It requires the new m3/m4 charger. Features: Powered by high capacity, cold temperature operation, NiMH cells. Four (4) temperature-duration settings. Settings adjusted by easy to use, push-button controls. Easy-to-read battery pack LEDs indicate setting selected and power on/off. Battery packs easily attach to secure area of footwear. Battery packs m4 contain four (4) cells for extended duration. NiMH cells do NOT have “memory effect” and do NOT require fully discharging before fully recharging. |
|
|
Suunto Observer SR Watch $299 SuuntoS Observer SR Watch measures your vertical ascents and descents, as well as the total number of runs skied and shows all that easily with one press of a button. It provides you with reliable information on barometric pressure and temperature and functions as a digital compass. Additionally, it has a calendar, clock, dual time display, and a stopwatch. Its timeless design makes it wearable in any casual situation; it includes an easy-to-read display with an extra-ordinarily wide viewing angle, electro-luminescent backlight and a user-replaceable battery. Because of its moderate size and stylish design it is perfectly suitable for both men, as well as women. Features: Altimeter: Altitude, vertical speed, logbook function with quick-access button, memory capacity 99 logs, history memory, alti/baro lock, temperature compensation Barometer: Sea level pressure, absolute pressure, weather trend indicator, temperature, automatic 4-day barometric memory, alti/baro lock Compass: Bearing, cardinal bearing, bearing tracking, North-South arrow, declination setting Chronograph: Calendar, 3 alarms, dual time, stopwatch with 99 split/lap times Material: Suunto Observer Sr – stainless steel housing with elastic strap (80 g) Water resistant to 100 m (330 ft) |
|
|
Wrights Bondex Iron-on Patch 5×7 Light Grey 2pc $1.29 Wrights Bondex Iron-on Patches are washable and dry cleanable. Just follow the simple Instructions, and your garment will be as good as new! Read complete Instructions and Cautions before use. 5″x 7″ Light Grey 2pc |
|
|
Wrights Bondex Iron-on Patch 5×7 Light Blue 2pc $1.29 Wrights Bondex Iron-on Patches are washable and dry cleanable. Just follow the simple Instructions, and your garment will be as good as new! Read complete Instructions and Cautions before use. 5″x 7″ Light Blue 2pc |
|
|
Wrights Bondex Iron-on Patch 5×7 Fatigue 2pc $1.29 Wrights Bondex Iron-on Patches are washable and dry cleanable. Just follow the simple Instructions, and your garment will be as good as new! Read complete Instructions and Cautions before use. 5″x 7″ Fatigue 2pc |
|
|
Wrights Bondex Iron-on Patch 5×7 Worn Denim 2pc $1.29 Wrights Bondex Iron-on Patches are washable and dry cleanable. Just follow the simple Instructions, and your garment will be as good as new! Read complete Instructions and Cautions before use. 5″x 7″ Worn Denim 2pc |
|
|
Wrights Bondex Iron-on Patch 5×7 White 2pc $1.29 Wrights Bondex Iron-on Patches are washable and dry cleanable. Just follow the simple Instructions, and your garment will be as good as new! Read complete Instructions and Cautions before use. 5″x 7″ White 2pc |
|
|
Wrights Bondex Iron-on Patch 5×7 Beige 2pc $1.29 Wrights Bondex Iron-on Patches are washable and dry cleanable. Just follow the simple Instructions, and your garment will be as good as new! Read complete Instructions and Cautions before use. 5″x 7″ Beige 2pc |
|
|
Wrights Bondex Iron-on Patch 5×7 Black 2pc $1.29 Wrights Bondex Iron-on Patches are washable and dry cleanable. Just follow the simple Instructions, and your garment will be as good as new! Read complete Instructions and Cautions before use. 5″x 7″ Black 2pc |
|
|
Wrights Bondex Iron-on Patch 5×7 Seal Brown 2pc $1.29 Wrights Bondex Iron-on Patches are washable and dry cleanable. Just follow the simple Instructions, and your garment will be as good as new! Read complete Instructions and Cautions before use. 5″x 7″ Seal Brown 2pc |
|
|
Yaley Candlemaking Thermometer Thermometer $8.49 This professional candlemaking thermometer is specially designed for use with many types of wax. Easy to read numbers and lines showing the mold temperatures to pour glass fill, plastic, chunk, metal and sand casts. Thermometer |
|
|
Electric EG.5s Goggles $91.9 Electric EG.5s Goggles: Extra, extra, read all about ???em! The Electric EG.5s goggles are taking the slopes by storm, loaded with the technology you love and want, and styles that are hot off the presses. |
|
|
Electric EG.5s Goggles $91.9 Electric EG.5s Goggles: Extra, extra, read all about ???em! The Electric EG.5s goggles are taking the slopes by storm, loaded with the technology you love and want, and styles that are hot off the presses. |
|
|
Electric EG.5s Goggles $91.9 Electric EG.5s Goggles: Extra, extra, read all about ???em! The Electric EG.5s goggles are taking the slopes by storm, loaded with the technology you love and want, and styles that are hot off the presses. |
|
|
Electric EG.5s Goggles $91.9 Electric EG.5s Goggles: Extra, extra, read all about ???em! The Electric EG.5s goggles are taking the slopes by storm, loaded with the technology you love and want, and styles that are hot off the presses. |
|
|
Electric EG.5s Goggles $91.9 Electric EG.5s Goggles: Extra, extra, read all about ???em! The Electric EG.5s goggles are taking the slopes by storm, loaded with the technology you love and want, and styles that are hot off the presses. |
|
|
Electric EG.5s Goggles $91.9 Electric EG.5s Goggles: Extra, extra, read all about ???em! The Electric EG.5s goggles are taking the slopes by storm, loaded with the technology you love and want, and styles that are hot off the presses. |
|
|
12 Rotary Paper Trimmer 9580 – Limited Time 20% Off Sale! Price shown reflects discount. $43.94 Fiskars unique 12″ rotary countertop trimmer features a razor-sharp rolling blade that cuts accurately and efficiently. Balanced, non-skid, and lightweight base. Easy to read 1/8″ scale and 1/2″ grid on base helps to align cutting material. Interchangeable with all Fiskars decorative blades. |
|
|
Hotronic USA Hotronic M4 Power Plus FootWarmer Custom $219 The Hotronic Power Plus m4 Custom FootWarmer is Hotronics most powerful, longest-lasting foot warmer! This foot warmer has four (4) cells in each battery pack. This foot warmer installs in all types of footwear and transfers easily from one pair of footwear to another. Use while skiing, snowboarding, bicycling, horseback riding, fishing and during other general cold-temperature activities. For the overseas traveler, the m4 uses advanced global charging technology with overcharge protection and input range of 100V-240V. The m3/m4 Power Plus recharger includes both North American and European plug adapters and is compatible with the m3 and m4 battery packs. Install in any of Hotronics Heat Ready Insoles (semi-custom heat-ready insoles or one-size-fits-all heat-ready insoles) or on insoles of your own choice. Includes: 2 battery packs m4 with Integrated Heat Regulator. 1 pair of heating elements with self-adhesive fabric covers and strips. 1 Recharger (global input 100-240VAC, 50/60Hz) with North American and European plug adapters. Features: Powered by high-capacity, cold-temperature operation NiMH cells. Four temperature-duration settings. Settings adjusted by easy-to-use, push-button controls. Easy-to-read battery pack LEDs indicate setting selected and power on/off. Battery packs easily attach to secure area of footwear. Battery packs m4 contain four cells for extended duration. NiMH cells do NOT have “memory effect” and do NOT require fully discharging before fully recharging. Want the get a custom fit in your boot without paying custom-fit fees? Looking to make your Hotronic installation much easier? Click here for Hotronics Semi-Custom insole. Its an excellent addition to your M4 Kit! |
|
|
Hotronic USA Hotronic M3 Power Plus FootWarmer Custom $199 The Hotronic Power Plus m3 Custom Footwarmer is Hotronics powerful, most compact FootWarmer! This foot warmer has three (3) cells in each battery pack. This foot warmer installs in all types of footwear and transfers easily from one pair of footwear to another. Use while skiing, snowboarding, bicycling, horseback riding, fishing and during other general cold-temperature activities. For the overseas traveler, the m3 uses advanced global charging technology with overcharge protection and input range of 100V-240V. The m3/m4 Power Plus recharger includes both North American and European plug adapters and is compatible with the m3 and m4 battery packs. Install in any of Hotronics Heat Ready Insoles (Semi Custom Heat Ready Insoles or One Size Fits All Heat Ready Insoles) or on insoles of your own choice. Includes: 2 battery packs m3 with integrated heat regulator. 1 pair of heating elements with self-adhesive fabric covers and strips. 1 recharger (global input 100-240VAC, 50/60Hz) with North American and European plug adapters. Features: Powered by high-capacity, cold-temperature operation, NiMH cells. Four (4) temperature-duration settings. Settings adjusted by easy to use, push-button controls. Easy-to-read battery pack LEDs indicate setting selected and power on/off. Battery packs easily attach to secure area of footwear. Battery packs m3 contain three (3) cells for extended duration. NiMH cells do NOT have memory effect and do NOT require fully discharging before fully recharging. Want the get a custom fit in your boot without paying custom-fit fees? Looking to make your Hotronic installation much easier? Click here for Hotronics Semi-Custom insole. Its an excellent addition to your M3 kit! |
|
|
Casual Industrees J.Tree Stripes Zip Hoodie $34.9 Casual Industrees J.Tree Stripes Zip Hoodie: Researchers at Central Connecticut State University ranked Seattle the most literate city in America in 2005. So if you can read this, thank a teacher. If you can???t, ask a Seattleite to read it for you. With a classic tree-shaped silhouette design behind the skyline of the Emerald City, Casual Industrees??? J. Tree Striped hoodie features a snapshot of what makes Seattle the rare and gleaming emerald that it is. |
|
|
Casual Industrees J.Tree Stripes Zip Hoodie $34.9 Casual Industrees J.Tree Stripes Zip Hoodie: Researchers at Central Connecticut State University ranked Seattle the most literate city in America in 2005. So if you can read this, thank a teacher. If you can???t, ask a Seattleite to read it for you. With a classic tree-shaped silhouette design behind the skyline of the Emerald City, Casual Industrees??? J. Tree Striped hoodie features a snapshot of what makes Seattle the rare and gleaming emerald that it is. |
Related posts:
