Trading Technicals - Candle Stick Pattern Simplified
There are really only 12 major Candlestick patterns that need to be committed to memory.
The Japanese Candlestick trading signals consist of approximately 40 reversals and continuation patterns. All have credible probabilities of indicating correct future direction of a price move.
The following dozen signals illustrate the major signals.
The definition of "major" has two functions. Major in the sense that they occur in price movements often enough to be beneficial in producing a ready supply of profitable trades as well as clearly indicating price reversals with strength enough to warrant placing trades.
Utilizing just the major Japanese Candlesticks trading signals will provide more than enough trade situations for most investors.
They are the signals that investors should contribute most of their time and effort. However, this does not mean that the remaining patterns should not be considered.
Those signals are extremely effective for producing profits. Reality demonstrates that some of them occur very rarely. Other formations, although they reveal high potential reversals, may not be considered as strong a signal as the major signals.
Doji - Gravestone Doji - Long Legged Doji
Bearish Engulfing Pattern - Bullish Engulfing Pattern
Piercing Pattern
Dark Cloud Cover - Hammer and Hanging-man
The Morning Star , Evening Star & The Shooting Star
...Continued in the Next week Article - Track the The thread for more updates
@Abhishek M R
Technician/Strategist
Contributor@Investing.com
advisory.trendtraders@live.com
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