I'd noticed that not many traders pay attention to candlesticks analysis, which I think is a big mistake. Candles offer traders an instant view of the strength of the underlying trend. There are many variations but for my purpose, however, only a basic of candlesticks is necessary; two reversal patterns, morning star and evening star. For those truly interested in the subject matter, I suggest to refer to Steve Nilson's book, focusing exclusively on candlesticks.
1- In the morning star, a long black candle is followed by a hammer,
which in turn is followed by a long white candle...Should provides a strong buy signal if trading at the support line.
2- In the evening star, a long white candle is followed by a hammer, which in turn is followed by a long black candle...Should provides a strong sell signal if trading at the resistance line.
(Refer to the left chart). I'm sorry for not showing my own chart examples, i've been busy lately..hehehe...
Ironically, candlesticks almost useless for trading as a stand-alone instrument and valuable only when used in conjunction with other indicators like stochastics and MACD...
Thank you, and have a good weekend...
1- In the morning star, a long black candle is followed by a hammer,
which in turn is followed by a long white candle...Should provides a strong buy signal if trading at the support line.2- In the evening star, a long white candle is followed by a hammer, which in turn is followed by a long black candle...Should provides a strong sell signal if trading at the resistance line.
(Refer to the left chart). I'm sorry for not showing my own chart examples, i've been busy lately..hehehe...
Ironically, candlesticks almost useless for trading as a stand-alone instrument and valuable only when used in conjunction with other indicators like stochastics and MACD...
Thank you, and have a good weekend...
No comments:
Post a Comment