We often see stocks massively gap up after positive news or vice versa due to negative news.Quick Navigation What Is Japanese Candlestick Charting Techniques 1.Trading the Doji Candlestick How Do You Read Japanese Candlesticks 1.Favorite Pattern 1: Japanese Candlestick Charting Techniques 2.
Favorite Pattern 2: Japanese Candlestick Charting Techniques 3. Steve Nn Youtube How To Read AFavorite Pattern 3 What Is the Best Candlestick Charting Book Summary What Is Japanese Candlestick Charting Techniques Japanese candlestick charting techniques is the modern day version of how to read a stock chart. Candlesticks have become a much easier way to read price action and the patterns that they form tell a very powerful story when stock trading. Japanese candlestick charting techniques are the absolute foundation of trading. They tell the important story of support and resistance and thats the most important part of trading. This video shows the importance of candlesticks when trading. Do you want to learn about Japanese candlestick charting techniques Im not going to go into too much detail on the basics of candlesticks. Steve Nn Youtube Free Candlestick EWeve got that covered in our free candlestick e-book and in our blog. However, what I am going to show you today is my three favorite money-making Japanese Candlestick Charting Techniques. ![]() And when you see one you can almost be certain, a reversal in price action is imminent. With an extremely small body due to the same opening and closing price and long shadows, theyre hard to miss. As you can see in the example above, the opening and closing prices are the same. This is a signal that the market doesnt know which direction to take. It means the prior trend is losing its strength and no one is in control of the market. Most often or not, if you see this after a strong upward or downward trend, the market is likely to reverse. We discuss any Japanese candlestick charting techniques in our trading room. ![]() Alternatively, if the previous candles are bearish then the doji will probably form a bullish reversal. As you can see in the example below, there was a strong bullish upward trend. After four candles the buyers were no longer able to keep pushing the price higher, indecision hit in the form of a doji, the sellers came in and we see the wash down. How Do You Read Japanese Candlesticks Simple steps on how to read Japanese Candlesticks: Determine whether the pattern is bullish or bearish Look at the opening and closing price If closing price is higher than open its bullish If closing price is lower than open then its bearish When opening and closing price are the same then its a doji or indecision candle Look at the bigger overall patterns such as cup and handles, triangles, head and shoulders etc Make sure to look for patterns within patterns such as flags and pennants Look for reversal patterns such as dojis, hammers, and shooting stars Study candlestick patterns before entering any trade 1. Favorite Pattern 1: Japanese Candlestick Charting Techniques Shorting Stocks That Go Parabolic Stocks that go parabolic are ones that have massive moves in the same day.
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