Candlestick charts
- Thread starter vishalalluri
- Start date
hi everyone
here we go with candlesticks ................................
It would take a real long time to finish candlesticks and after each and evry topic we discuss i wud try putting charts to show their role , i believe if we try doing it seriously we can just finish it wid perfection and one month down the line we see charts and candle we shud be able to recognise the ball is in the hands of bulls or bears
candlesticks are nothing but depicion of the fight beetween the bulls and the bears
the most visually available part in all charts which just gives very easily a picture about whats next to come every candlestick has there own patterns and after an uptrend.downtrend they give great reversal signals
please dont mind but i m not putting any history of candlesticks
i would just give the simplest way in which any beginner should be able to just start and understand what they are all about
Candlestick Line uses the data (open,high, low, and close) to create a much more visual graphic to depict what is going on with the stock.
The thick part of the candlestick line is called the real body.
It represents the range between the sessions opening and closing prices.
If the real body is red, it means that the close of the session was lower than the open.
If the real body is green, it means that the close was higher than the open.
The lines above and below the body are the shadows.
The shadows represent price extremes.
The shadow above the real body is called the upper shadow and the shadow below the real body is called the lower shadow.
The top of the upper shadow is the high of the day,and the bottom of the lower shadow is the low of the day.
here we go with candlesticks ................................
It would take a real long time to finish candlesticks and after each and evry topic we discuss i wud try putting charts to show their role , i believe if we try doing it seriously we can just finish it wid perfection and one month down the line we see charts and candle we shud be able to recognise the ball is in the hands of bulls or bears
candlesticks are nothing but depicion of the fight beetween the bulls and the bears
the most visually available part in all charts which just gives very easily a picture about whats next to come every candlestick has there own patterns and after an uptrend.downtrend they give great reversal signals
please dont mind but i m not putting any history of candlesticks
i would just give the simplest way in which any beginner should be able to just start and understand what they are all about
Candlestick Line uses the data (open,high, low, and close) to create a much more visual graphic to depict what is going on with the stock.
The thick part of the candlestick line is called the real body.
It represents the range between the sessions opening and closing prices.
If the real body is red, it means that the close of the session was lower than the open.
If the real body is green, it means that the close was higher than the open.
The lines above and below the body are the shadows.
The shadows represent price extremes.
The shadow above the real body is called the upper shadow and the shadow below the real body is called the lower shadow.
The top of the upper shadow is the high of the day,and the bottom of the lower shadow is the low of the day.
i would like to list out what terms we would come acroos in candlestick and from my next post ill start talkng about these signals
DOJI
DRAGON FLY DOJI .GRAVESTONE DOJI
HAMMER MAN /HANGING MAN/INVERTED HAMMER MAN /HANGING MAN
BULLISH ENGULFING
BEARISH ENGULFING
MORNINGSTAR/EVENING STAR
SHOOTING STAR
AND LOTS MORE BUT THE ABOVE ARE THE MOST IMPROTANT ONES
CANDLESTICK CHARTINS AGAINS AN OCEAN I LL TRY PICKING UP AS MANY TECHNICUES AND INDICATIONS
I WOULD LIKE PEOPLE VISITING ALSO TO KEEP POSTING CHARTS SO THAT IT WOULD BE EASIER AND PRODUCTIVE
DOJI
DRAGON FLY DOJI .GRAVESTONE DOJI
HAMMER MAN /HANGING MAN/INVERTED HAMMER MAN /HANGING MAN
BULLISH ENGULFING
BEARISH ENGULFING
MORNINGSTAR/EVENING STAR
SHOOTING STAR
AND LOTS MORE BUT THE ABOVE ARE THE MOST IMPROTANT ONES
CANDLESTICK CHARTINS AGAINS AN OCEAN I LL TRY PICKING UP AS MANY TECHNICUES AND INDICATIONS
I WOULD LIKE PEOPLE VISITING ALSO TO KEEP POSTING CHARTS SO THAT IT WOULD BE EASIER AND PRODUCTIVE
DOJI
Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns. Any bullish or bearish bias is based on preceding price action and future confirmation
There are four types of doji candlesticks
doji show us mainly that the open price and the close price were a the same levels
common(+ sign ) , spinning tops
long-legged(long upper and lower shadows)
dragonfly
gravestone.
spinning tops
i would post an image and then i wud discuss each and every kind of doji and their significance what they represt
lets try understanding what happens with doji 's
Prices move above and below the opening level during the session, but close at or near the opening level.
The result is a standoff.
Neither bulls nor bears were able to gain control and a turning point could be developing.
Doji and Trend
The relevance of a doji depends on the preceding trend or preceding candlesticks.
After an advance, or long white candlestick, a doji signals that the buying pressure is starting to weaken.
After a decline, or long black candlestick, a doji signals that selling pressure is starting to diminish.
Doji indicate that the forces of supply and demand are becoming more evenly matched and a change in trend may be near.
Doji alone are not enough to mark a reversal and further confirmation may be warranted.
spinning tops (the daigram is given in the black n white chart)
Candlesticks with a long upper shadow, long lower shadow and small real body are called spinning tops.
Spinning tops represent indecision.
The small real body (whether hollow or filled) shows little movement from open to close, and the shadows indicate that both bulls and bears were active during the session.
Even though the session opened and closed with little change, prices moved significantly higher and lower in the meantime.
Neither buyers nor sellers could gain the upper hand and the result was a standoff.
After a long advance or long white candlestick, a spinning top indicates weakness among the bulls and a potential change or interruption in trend. After a long decline or long black candlestick, a spinning top indicates weakness among the bears and a potential change or interruption in trend.
I HAVE SHOWN HOWAFTER AN UPTREND DOJI AND AFTER THAT A SPINNING TOP CONFIRMS A DOWNTREND TO FOLLOW
LONG WHITE CANDLESTICK +DOJI
After an advance or long white candlestick, a doji signals that buying pressure may be diminishing and the uptrend could be nearing an end. Whereas a security can decline simply from a lack of buyers, continued buying pressure is required to sustain an uptrend. Therefore, a doji may be more significant after an uptrend or long white candlestick. Even after the doji forms, further downside is required for bearish confirmation. This may come as a gap down, long black candlestick, or decline below the long white candlestick's open. After a long white candlestick and doji, traders should be on the alert for a potential evening doji star.
BLACK/RED CANDLESTICK +DOJI
After a decline or long black candlestick, a doji indicates that selling pressure may be diminishing and the downtrend could be nearing an end.
Even though the bears are starting to lose control of the decline, further strength is required to confirm any reversal. Bullish confirmation could come from a gap up, long white candlestick or advance above the long black candlestick's open. After a long black candlestick and doji, traders should be on the alert for a potential morning doji star.
LONG LEGGED DOJI
Long-legged doji have long upper and lower shadows that are almost equal in lengt and a smaal real body .
a claasic example is shown below
after a downtrend a long legged doji forms symbolising a reversal further confirmation occurs when the next canle is green and closed higher than the long legged doji
These doji reflect a great amount of indecision in the market. Long-legged doji indicate that prices traded well above and below the session's opening level, but closed virtually even with the open. After a whole lot of yelling and screaming, the end result showed little change from the initial open.
I WOULD BE POSTING THE DRAGONFLY DOJI GRAVESTTONE DOJI IN NEXT POST AS I CAN UPLOAD ONLY 5 CHARTS IN ONE POST
Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns. Any bullish or bearish bias is based on preceding price action and future confirmation
There are four types of doji candlesticks
doji show us mainly that the open price and the close price were a the same levels
common(+ sign ) , spinning tops
long-legged(long upper and lower shadows)
dragonfly
gravestone.
spinning tops
i would post an image and then i wud discuss each and every kind of doji and their significance what they represt
lets try understanding what happens with doji 's
Prices move above and below the opening level during the session, but close at or near the opening level.
The result is a standoff.
Neither bulls nor bears were able to gain control and a turning point could be developing.
Doji and Trend
The relevance of a doji depends on the preceding trend or preceding candlesticks.
After an advance, or long white candlestick, a doji signals that the buying pressure is starting to weaken.
After a decline, or long black candlestick, a doji signals that selling pressure is starting to diminish.
Doji indicate that the forces of supply and demand are becoming more evenly matched and a change in trend may be near.
Doji alone are not enough to mark a reversal and further confirmation may be warranted.
spinning tops (the daigram is given in the black n white chart)
Candlesticks with a long upper shadow, long lower shadow and small real body are called spinning tops.
Spinning tops represent indecision.
The small real body (whether hollow or filled) shows little movement from open to close, and the shadows indicate that both bulls and bears were active during the session.
Even though the session opened and closed with little change, prices moved significantly higher and lower in the meantime.
Neither buyers nor sellers could gain the upper hand and the result was a standoff.
After a long advance or long white candlestick, a spinning top indicates weakness among the bulls and a potential change or interruption in trend. After a long decline or long black candlestick, a spinning top indicates weakness among the bears and a potential change or interruption in trend.
I HAVE SHOWN HOWAFTER AN UPTREND DOJI AND AFTER THAT A SPINNING TOP CONFIRMS A DOWNTREND TO FOLLOW
LONG WHITE CANDLESTICK +DOJI
After an advance or long white candlestick, a doji signals that buying pressure may be diminishing and the uptrend could be nearing an end. Whereas a security can decline simply from a lack of buyers, continued buying pressure is required to sustain an uptrend. Therefore, a doji may be more significant after an uptrend or long white candlestick. Even after the doji forms, further downside is required for bearish confirmation. This may come as a gap down, long black candlestick, or decline below the long white candlestick's open. After a long white candlestick and doji, traders should be on the alert for a potential evening doji star.
BLACK/RED CANDLESTICK +DOJI
After a decline or long black candlestick, a doji indicates that selling pressure may be diminishing and the downtrend could be nearing an end.
Even though the bears are starting to lose control of the decline, further strength is required to confirm any reversal. Bullish confirmation could come from a gap up, long white candlestick or advance above the long black candlestick's open. After a long black candlestick and doji, traders should be on the alert for a potential morning doji star.
LONG LEGGED DOJI
Long-legged doji have long upper and lower shadows that are almost equal in lengt and a smaal real body .
a claasic example is shown below
after a downtrend a long legged doji forms symbolising a reversal further confirmation occurs when the next canle is green and closed higher than the long legged doji
These doji reflect a great amount of indecision in the market. Long-legged doji indicate that prices traded well above and below the session's opening level, but closed virtually even with the open. After a whole lot of yelling and screaming, the end result showed little change from the initial open.
I WOULD BE POSTING THE DRAGONFLY DOJI GRAVESTTONE DOJI IN NEXT POST AS I CAN UPLOAD ONLY 5 CHARTS IN ONE POST
the more u look at these candle figures the more they get to ur toungue u see a chart and u can recognise whats happening in the game of bulls and bears
okie lets just understand in brief looking at the daigrams again whats happening in candle stick charts
Please refer the image attached and try understanding the basic candle signals
1. Long white candlesticks indicate that the Bulls controlled the ball
(trading) for most of the game.
2. Long black candlesticks indicate that the Bears controlled the ball
(trading) for most of the game.
3. Small candlesticks indicate that neither team could move the ball
and prices finished about where they started.
4. A long lower shadow indicates that the Bears controlled the ball for
part of the game, but lost control by the end and the Bulls made an
impressive comeback.
5. A long upper shadow indicates that the Bulls controlled the ball for
part of the game, but lost control by the end and the Bears made
an impressive comeback.
6. A long upper and lower shadow indicates that the both the Bears
and the Bulls had their moments during the game, but neither could
put the other away, resulting in a standoff.
okie lets just understand in brief looking at the daigrams again whats happening in candle stick charts
Please refer the image attached and try understanding the basic candle signals
1. Long white candlesticks indicate that the Bulls controlled the ball
(trading) for most of the game.
2. Long black candlesticks indicate that the Bears controlled the ball
(trading) for most of the game.
3. Small candlesticks indicate that neither team could move the ball
and prices finished about where they started.
4. A long lower shadow indicates that the Bears controlled the ball for
part of the game, but lost control by the end and the Bulls made an
impressive comeback.
5. A long upper shadow indicates that the Bulls controlled the ball for
part of the game, but lost control by the end and the Bears made
an impressive comeback.
6. A long upper and lower shadow indicates that the both the Bears
and the Bulls had their moments during the game, but neither could
put the other away, resulting in a standoff.
HI EVERYUNE
I M JUST TRYING TO WRITE ON MY OWN SO EXCUSE ME IF THERE IS ANY GRAMMATICAL MISTAKE OR MISTAKES WITH FULLSTOPS COMMAS
I would like to talk about hammer man and hanging man
They both look similar they have small bodies lonnng lower shadows and smaallll upper shadow
HAMMER OR HANGING THEY REQUIRE CONFIRMATION
HAMMER generally comes after a downtrend and is like a bullish reversal signal so it mostly occurs after a downtrend .
The long lower shadow represents that the seller drove the prices lower during trading but at the end the buyers were able to pull the prices back
Afer a hammer occurs a second confirmation could be a next bullish candle
which closes above the HAMMER .
similarly
hanging man comes after a UPTREND and is a bearish beversal signal so it mostly comes after a uptrend
After an uptrend when a HANGING man occurs it shows that the sellers dominates the price but buyers took the price back
and a reversal would be confirmed only if the next candle closes below that of a HAMMER
I M JUST TRYING TO WRITE ON MY OWN SO EXCUSE ME IF THERE IS ANY GRAMMATICAL MISTAKE OR MISTAKES WITH FULLSTOPS COMMAS
I would like to talk about hammer man and hanging man
They both look similar they have small bodies lonnng lower shadows and smaallll upper shadow
HAMMER OR HANGING THEY REQUIRE CONFIRMATION
HAMMER generally comes after a downtrend and is like a bullish reversal signal so it mostly occurs after a downtrend .
The long lower shadow represents that the seller drove the prices lower during trading but at the end the buyers were able to pull the prices back
Afer a hammer occurs a second confirmation could be a next bullish candle
which closes above the HAMMER .
similarly
hanging man comes after a UPTREND and is a bearish beversal signal so it mostly comes after a uptrend
After an uptrend when a HANGING man occurs it shows that the sellers dominates the price but buyers took the price back
and a reversal would be confirmed only if the next candle closes below that of a HAMMER
IN OUR PREVIOUS POST I DISCUSSED ABOUT HAMMER AND HANGING MAN
THEY FORM AFTER AN UPTREND OR A DOWNTREND .HAMMER AND HANGING MAN HAVE LONG LOWER SHADOWS AND SHORT UPPER SHADOWS WITH SMALL BODY
NOW WE WILL SE ABOUT INVERTED HAMMER AND SHOOTING STAR
THESE LOOK JUST OPPOSITE OF HAMMER/HANGING IN A WAY THEY HAVE LONG UPPER SHADOW AND SHORT LOWER SHADOWS WITH A SMALL BODY
The Inverted Hammer forms after a decline or downtrend.
Inverted Hammers represent a potential trend reversal or support levels.
After a decline, the long upper shadow indicates buying pressure during the session. However, the bulls were not able to sustain this buying pressure and prices closed well off of their highs to create the long upper shadow.
An Inverted Hammer followed by a gap up or long white candlestick with heavy volume could act as bullish confirmation.
The Shooting Star is a bearish reversal pattern that forms after an advance and in the star position,
The candlestick forms when prices gap higher on the open, advance during the session and close well off their highs. The resulting candlestick has a long upper shadow and small black or white body.
To indicate a substantial reversal, the upper shadow should relatively long and at least 2 times the length of the body. Bearish confirmation is required after the Shooting Star and can take the form of a gap down or long black candlestick on heavy volume.
ILL PUT CHARTS ON INVERTED HAMMER AND SHOOTING STAR IN MY COMING POSTS
THEY FORM AFTER AN UPTREND OR A DOWNTREND .HAMMER AND HANGING MAN HAVE LONG LOWER SHADOWS AND SHORT UPPER SHADOWS WITH SMALL BODY
NOW WE WILL SE ABOUT INVERTED HAMMER AND SHOOTING STAR
THESE LOOK JUST OPPOSITE OF HAMMER/HANGING IN A WAY THEY HAVE LONG UPPER SHADOW AND SHORT LOWER SHADOWS WITH A SMALL BODY
The Inverted Hammer forms after a decline or downtrend.
Inverted Hammers represent a potential trend reversal or support levels.
After a decline, the long upper shadow indicates buying pressure during the session. However, the bulls were not able to sustain this buying pressure and prices closed well off of their highs to create the long upper shadow.
An Inverted Hammer followed by a gap up or long white candlestick with heavy volume could act as bullish confirmation.
The Shooting Star is a bearish reversal pattern that forms after an advance and in the star position,
The candlestick forms when prices gap higher on the open, advance during the session and close well off their highs. The resulting candlestick has a long upper shadow and small black or white body.
To indicate a substantial reversal, the upper shadow should relatively long and at least 2 times the length of the body. Bearish confirmation is required after the Shooting Star and can take the form of a gap down or long black candlestick on heavy volume.
ILL PUT CHARTS ON INVERTED HAMMER AND SHOOTING STAR IN MY COMING POSTS
I LL JST TRY PUTTIN MORE OF CHARTS SO THAT IT GETS EASIER TO JUST RECOGNISE THEM THE NEXT TIME WE SEE THEM
The Hammer have small real bodies long lower shadows and short or non-existent upper shadows. .
The Hammer is a bullish reversal pattern that forms after a decline. AND NEEDS CONFIRMATION
SO HERE WE GO ANOTHER CHART
The Hammer have small real bodies long lower shadows and short or non-existent upper shadows. .
The Hammer is a bullish reversal pattern that forms after a decline. AND NEEDS CONFIRMATION
SO HERE WE GO ANOTHER CHART
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