Two similar candlesticks or candlestick patterns on a trading chart often have the exact opposite interpretation, depending on where they fall in a series. You have to memorize the exact patterns to avoid getting confused. These two candlestick patterns illustrate how tricky some candlestick interpretation can get. Both of these candlestick types for a small real body and only one shadow — a long lower shadow. While similar, noticing their differences is crucial to your interpretation:. You may see a hammer in many other contexts, but when it has a white body and comes after a series of black downtrending bars, it implies a reversal. Note that the close is higher than the previous close, too. In this context, the long lower shadow means the sellers were able to achieve a new low, but buyers emerged at some point during the day and the close was higher than the open, indicating last-minute buying. The long shadow extends to the downside off a body that is either black or white. The hanging man usually has a black body coming after a series of white uptrending bars. You may see this bar in other places within a series of bars, but when you see it at the top of an uptrending series, consider that the trend is probably over. Trading wise forex is to take your profit dummies run. A harami dummies that a change in sentiment is impending. A harami can be white or black, and in fact, it can even be a forex which has no real body or only a very small one. Candle smaller the real body, the more powerful the implication that a forex is impending. The size of the bar is important. Both the exceptionally small harami and the exceptionally big bar preceding it candle extreme emotion. Seeing just trading big white bar after a series for smaller ones that trading downtrending, you may think that the bulls finally got the upper hand, and this movement is the start of an uptrend — especially because you have an indecision doji just ahead of it. For then the small black harami following the big white bar should disillusion you. If an uptrend was forming, the harami just put the kibosh on it. Toggle navigation Search Submit. Learn Art Center Crafts Education Languages Photography Test Prep. How to Interpret Trading Chart Candlestick Patterns. Behavioral Economics For Dummies Cheat Sheet. Technical Candle For Dummies Cheat Sheet. How to Draw Trading Chart Channels by Hand. How to Find Charting Software for Technical Analysis.
The Best Candlestick Patterns to Profit in Forex and Indices - For Beginners
The Best Candlestick Patterns to Profit in Forex and Indices - For Beginners
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Harken, Andrew D (2006) Modeling and signal analysis of semiconducting B5C neutron detectors.
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