Japanese Candles ... Second Chapter
5. The fifth candle
5 - the fifth candle and be of two forms the first black and called shooting star and the second white and called inverted hammer
shooting star
It is characterized by the following: Small body evidence of weak trading of the stock and body color black evidence that the price fell from the opening price but a slight decline
Note that the head is too long to indicate that the stock is too high, but the sellers were able to control the trade and take the price from this rise to a price below the opening price, which is the closing price. This shows a terrible control for sellers and Noins get rid of this stock
So this candle often occurs after the rise of the stock or a long white candle and according to the previous words of the sellers managed it always occurs a sudden drop of the stock after this candle and this candle is a point of resistance to the stock
inverted hammer
It is characterized by the following: A small body is evidence of weak circulation and body color is white evidence that the price rose from the opening but the increase is not significant
The head is too long to show that the share price reached a high level and was pressured by sellers to download it.
If this stock refuses to fall and is determined to rise so often after a sudden rise of the stock provided that this candle occurs after a sharp decline in the stock and this candle in this place is a support point for the stock
Note the difference between the two forms The star is formed after a noticeable rise of the stock and often at the point of resistance of the stock and then a sudden fall of the stock
The inverted hammer is formed after a significant drop in the stock, often at a point of support for the stock, and then a sudden rise in the stock
Next time we talk about the most important candle in individual candles which are doji
Sixth candle: doji doji
This candle is characterized by the fact that its body is too small may be a straight line because the opening price is the same as the closing price or higher or lower than the closing price, but by a very small
It is characterized that its shadows are very long times the length of the body and this is what differentiates them from a small candle whose body is small but its shadows are shorter than the length of its body
These long shadows that distinguish this candle indicate the confusion of dealers and the inability of both buyers and sellers to control the stock, so the deal ends at a price equal to the opening price
Due to the importance of this candle in the presence of this confusion in dealing and this small body very because if it came for example after a long white candle, this is evidence of the stop buying large movement on this stock and the beginning of a period of weakness and confusion ends with a surprise in dealing
Conversely, if it appears after a black candle, the stock may have a sudden rise
This candle appears in several forms including: plus sign (+), cross and inverted cross
These forms apply to the previous interpretation of the confusion of dealers and stop the movement of dealing, but there are other forms of them
dragon fly doji
This candlestick indicates a large sell-off that led to the decline of this stock to this extent, but the buyers bought a large amount of the stock, which led to his return back to the opening price. Surprise rally because there are a large number of buyers willing to sacrifice and save this stock Haha
gravestone doji
This candle indicates a significant buying of the stock led to raise it to this extent represented by this head, but the sellers returned it to the opening price again means this candle indicates the weakness of the deal, but the sellers are dominant so if it appears at the point of resistance to the stock we wait for a calamity will occur after the emergence
long legged doji
This candle has very long legs evidence of a very high volatility in dealing and depression of dealers with the stock so that the stock returns back to the opening price and this candle is a very clear forms of doji, which is applied to the previous explanations without overlapping with any other candles
Seventh candle: MARUBOZU
This candle is a very long white or black candle but has no head or man
It does not have any shades, including two types:
The white marbouz indicates that the buyers took control of the stock from the first opening to the close and none of them hesitated to buy the black marbouz and indicates that the sellers took full control of the stock
This candle appears in the normal linear curve in the form of a straight line heading from the opening point to the closing point
This often happens when very strong news about the stock arrives
If the news is good, this white candle appears, and if the news is bad, the black candle appears in a straight line from the opening down.
This was the last of the individual candles we talked about and their names were as follows:
- The long white candle
- long black candle
- White and black short candle
. Hammer and hanging man
- Inverted hammer and meteor
- Doji all kinds
- Marbouz eggs and blacks
Then we talk about the candles compound, which consists of more than a candle contiguous with each other
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