The candlestick shows what happens to the investor sentiment after the open Doji Star: Opens and

d closes at the same price Long legged Doji: Trading range is fairly large Dragonfly: Opens at the top trades lower all day and closes at same price Gravestone: opens low trades high and closes low *The trend will usually move in the direction of the open the next day after a Doji Cut your losses short, and let your profits run Name 200 day Moving Average 50 day Moving Average 20 day Moving Average 34 Exponential 8 Exponential Indicator SMA SMA SMA EMA EMA Type 200 day SMA 50 day SMA 20 day SMA 34 EMA 8 EMA Color RED BLUE GREY PINK BLACK

Candlestick Diagram

Name Doji on Top Doji on bottom

Meaning

Spinning Top

Indecision between the bulls and the bears

Action Sell Wait for confirmation, or the weight of the market will keep the trend moving down: sell Considered neutral

Doji at Top

After an extended uptrend, a Doji at the top means to take heed A gap down after a doji at the top, indicates strong selling pressure ahead (bears took

If a Doji has a gap up in the overbought condition: Take profit. If next day there is a gap down, close out the position immediately abandoned baby

Series of Doji

Indecision

Neutral, after this indecision

Doji at the bottom

If you see a Doji in the oversold condition, look for a buy signal if it opens positive thats your confirmation

Wait for a positive signal and buy Power move: Doji in the oversold area and gap it up the next day, there is a fairly strong reversal Wait for the next days open

Left/Right Combo

Demonstrates a change of investor sentiment

Bullish Engulfing Signals

Bearish Engulfing Signals

A major signal, when the elements out of a Bullish Engulfing signal are broken down, an investor can clearly understand what was going on in the investor sentiment to cause a reversal. Change in investor sentiment

Buy when it closes right at the T line and opens positive the bulls are still there and there is no resistance, then buy. Strong up trend

Sell

Hammer Signal

Bears have hammered out the bottom and bulls have stepped in. Look for bullish confirmation Bears have won control and look for bearing confirmation

Buy

Hanging Man

Sell especially in the overbought condition

Piercing Pattern

Opens below any of the trading of the previous day and closed more than one-half way point of last days trade.

Strong up trend buy

Dark Cloud

Tells an obvious reversal of a trend, the bigger the gap the bigger the change

Sell

Shooting Star

Bulls are in control and Look for bearish then bears take control, confirmation and sell gaps measure the strength

Inverted Hammer

Bears get nervous and see bulls step in. This demonstrates bears are covering fast and performing panic sales

Buy, if the next day opens positive big profits especially followed by a gap up. 95% it goes up Close if next day it opens positive and closes below the hammer Buy, if the bullish harami in on a support level stockastic is in the oversold area. Buyers are stepping in

Bullish Harami

Tells us the selling has stopped. *a gap up shows that the buyers are buying aggressively

Bearish Harami

Tells us that the buying has stopped

Sell, if there is confirmation from the bears

Morning Star

After a big downtrend, there is an indecisive day and there is a positive next day. The next day must close more than half way the previous day range

Buy, if the next day opens positive Sell, or close, if the trend goes down.

Evening Star

The previous behavior is in Sell an uptrend, then an indecisive day and then a negative

Bullish Kicker Signal

Traders kicked the investor sentiment in the opposite way *The bigger the gap the stronger the uptrend

Buy

Bearish Kicker Signal

Traders kicked the investor sentiment in the opposite way *The bigger the gap the stronger the downtrend

Sell immediately

Patterns Candlestick Diagram Pattern Name Jay-hook Elements Action

Dumpling Top Cradle Fry Pan bottom

44:30

Scoop

Belthold

1. next day positive Doji 2. Positive Doji is above T line 3. It opens positive after a big price move, a Doji. Doji Sandwich, The next move is equivalent to the previos Doji

43:00

Slow Curve

Buy fast

Factors for strong breakouts 1. What is the market direction?

2. What are the conditions of the Stochastics? 3. Is there an obvious Resistance Level? 4. What signals have price moving towards the BO? 5. A pattern?

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