Japanese Candles ... Third Chapter

Composite candles

Candles are made up of more than one adjacent candle.

bullish engulfing

This candle is named by this name because its appearance indicates the probability of the rise of the stock and because of the most important conditions that the second candle swallows the first candle and contain it so called a bolus or bolus

This candle is made as pictured from

A small black candle, which indicates that the share price has fallen from the opening price and the presence of large quantities of the stock.

The second candle is a long white candle.

The explanation of this candle compound that the black candle indicates a very weak trading on the stock and the control of the sellers and then appeared white, which began to drop the stock from the closing price yesterday and then corrected and returned to the closing price and then began to increase until it reached a higher higher than yesterday's opening price in black

This is indicative of large quantities of the stock and that buyers intend to raise the stock in the following days

Therefore, it indicates a high probability of a rise in trading this stock

Of course this talk if each candle of them indicate the trading of a full day of the stock means its time a full trading day

It is interesting that this candle indicates a well-known method of speculation talked about by al-Harbi and Ahmad Ali, a gap down

I mean, the white candle started to fall and then adjusted itself and returned to the closing price.

This is an example of this candle

The second compound candle

BEARISH ENGULFING

This candle is a reverse image of the previous candle and is from

A small white candle followed by a large black candle. The white candlestick indicates that trading led to a price increase and that the closing price is higher than the opening price

The big black candle is evidence of a higher opening than yesterday's close and then the stock started to collapse until it closed at a price lower than yesterday's opening price.

From the candle shows that trading up was small but trading down was very large and represented by the black candle and this shows the control of sellers and their intention to reduce this stock

All this gives a prediction of the decline that will occur in the following days, but this candle needs other indicators to help in order to indicate this decline or it will become just a resistance point for the stock.

The third compound candle

PIERCING PATTERN COLD CANDLE

Don't know why they called her that name? Apparently because it is a cold candle has no meaning. Important they consist like a candle

The previous bullion of black but long candle and long white candle also open lower than yesterday's closing price

It closes after the middle of the black candle

So the difference is that the candles are long and white closes after the middle of the black and this is what differentiates them from the previous phagocytosis

This candle should come after a drop in the stock or at a support point for the stock to say that it indicates the beginning of the rise and must

Other indicators come with it, otherwise it is only a support or a normal trading point

The fourth compound candle

HARAMI PATTERN

This candle I did not find the translation of her name and therefore called Harami on the same pronunciation of the name is important that it consists of two candles long and the second short and preferably doge

The colors of the two candles vary each time, the first may appear white and the second is black or black and white or white and white or black and black is important that these colors do not matter in the indication of something specific

This candle may indicate up or down depending on where you are

I mean, if it was at a support point for the stock and after a sharp drop to him we say that it indicates the rise even at the point of resistance and after

Rise we say it signifies an upcoming landing

The explanation for this candle is that the long initial candle, whether black or white, indicates a very high trading on the stock then

The short candle comes afterwards, preferably to doji, to indicate a great confusion among traders and their desire to

This situation changed to the opposite situation and this is what I said when explaining the importance of Doji

Note here that the long candle embraces the short candle and do not let it go out of its limits because there are other candles come after that throw the long candle short candle away from it

The fifth compound candle

morning star

This candle consists of three candles, the first black long and the second short black or white and consists of the closure of the initial black candle and if this second candle doji type, this model is called: morning doji star

The third candle is a long white candle

The explanation is that the first long black candle is a guide for the sellers' control and the wave of getting rid of this stock, then the Doji comes to show that the sellers went in shrewd and then the white candle comes to say rest assured good guys arrived.

So this candle at the support points suggests flying the stock

Sixth compound candle

abandoned baby abortion candle

The candle of a woman who has abandoned her fetus (illegal pregnancy) is composed of three candles such as the morning star

Exactly the difference is that the small candle in the middle started very far from yesterday's closing price and that is why the label

The explanation is that the first black candle is evidence of the selling wave and the control of the sellers and then come short doji and open on

A sharp drop in the next day is a sign of continued sellers' control and then the white candle opens to a higher price

The highest price of the stock the previous day and this indicates the beginning of a very large buying wave on the stock

So this candle, which threw her son away, is a sign of coming ascent in the following days

To be continue