Professional Documents
Culture Documents
Candle Stick Patterns
Candle Stick Patterns
“CANDLESTICKS”
And
How To Use Them
The bar at the top or bottom of a candle
can be referred to as a shadow or wick
Candlesticks can be used:
• On any time frame, one day, one
hour, 30-minutes etc.
Candlesticks can be used:
• On any time frame, one day, one
hour, 30-minutes etc.
• To describe the price action during a
given time frame.
There are many
candlestick patterns but
for the most part they can
be grouped into 6 major
patterns
Sometimes it is hard to
determine what each
candle stick formation is
trying to tell you
The recommendation form all the
candle stick instruction we have seen
is:
Always confirm the candle stick
patterns with other indicators.
What is the highest probability direction
of the market.
Is this a continuation
or a reversal pattern?
6 Most common:
Candle Sticks Patterns:
6 Most common:
Candle Sticks Patterns:
1. Doji Candles
6 Most common:
Candle Sticks Patterns:
1. Doji Candles
2. Near Doji Group (tail longer than the body)
6 Most common:
Candle Sticks Patterns:
1. Doji Candles
2. Near Doji Group (tail longer than the body)
3. Engulfing Candles
6 Most common:
Candle Sticks Patterns:
1. Doji Candles
2. Near Doji Group (tail longer than the body)
3. Engulfing Candles
4. Tweezer Candles
6 Most common:
Candle Sticks Patterns:
1. Doji Candles
2. Near Doji Group (tail longer than the body)
3. Engulfing Candles
4. Tweezer Candles
5. Inside Candles
6 Most common:
Candle Sticks Patterns:
1. Doji Candles
2. Near Doji Group (tail longer than the body)
3. Engulfing Candles
4. Tweezer Candles
5. Inside Candles
6. Outside Candles
Doji
Price Action
It is shown by
Candles
The difference between Price
action and candles is:
• Price Action adds in support and
resistance levels
The difference between Price
action and candles is:
• Price Action adds in support and
resistance levels
• Prior highs and lows and maybe a
couple of moving averages
Candle sticks are part of
price action…
• whether you are bouncing or breaking
support and resistance levels
• Candlesticks are the rest of the Price
Action decision making process
When you're near support and
resistance levels:
• You look for candlestick pattern to
determine the price action
• Also look for 5 alarm trades after grading
the strength of the trade
Price Action is the information
you are getting and the location
at which it is happening:
For example…
Is the information coming near, above, or
below Support and Resistance?
It is our opinion that you need
more than Candlesticks, and Price
Action to take advantage of the biggest
part of a trend.
CANDY BAR
SET UP
• The Candy Bar is one of the safest
trade you can take
• The Candy Bar is one of the safest
trade you can take
• It is usually confirmed by one or
more other indicators
• The Candy Bar is one of the safest
trade you can take
• It is usually confirmed by one or
more other indicators
• The trade will be earlier than
most other entry signals in a
continuing trend
Lets look at some
charts
For Candy Bar setups