Learn To Trade
Models of Japanese Candles Double Part I
22-08-2017 | No Views : 398
We now turn to a new type of Japanese candlestick pattern, which is a double pattern. In this way, the price creates two consecutive candlesticks that help us predict the direction of price action for the coming period. The pattern is two consecutive candles, not one candle, as was the case with individual candles.
Is a reflective pattern that causes a reversal of the trend, depends on two candlesticks and not a single candle, as it should be at the end of a clear direction, and the pattern comes to indicate that the buying forces prevail on the selling strength if it is at the end of a bearish trend, On the forces of demand.
It is worth mentioning that the swallow pattern comes in two directions. At the end of the bullish trend it is called the negative or bullish ingestion pattern, while in the bearish trend it is called the buy or the positive swallow pattern.
Characteristics of the model:1- The end must come at a clear direction, both long and short term.
2- The form consists of two candles The second candle covers the entire body of the first candle, the most important is the body and not the tail.
3- The model consists of two candles each candle in the color of the successor, for example positive model is the first candle drop and the second rising covering the body of the first candle completely.
Some factors increase the strength of the model:
- When the body of the first candle comes small, the body of the second candle is too large to cover more than its previous candle.
- The model will be after a sharp rise.
- If the second day has a huge trading volume, (for the stock market), and in the FX market for those who analyze liquidity (VSA).
Model of top and bottom trimmer:The pattern is formed after a bullish or bearish trend indicating the possibility of a reversal of the pair, indicating that the purchasing or selling forces are no longer able to push the price higher or lower and thus the price is about to reverse.
Conditions for the model of the top and bottom trimmer:
- The first candle is in the same direction as the pair at the moment. If the trend is bullish, the first candle will be a rising candle. If the trend is bearish, the first candle will be a bearish candle.
- The second candle is reversing the current trend of the pair. If the general trend is bullish, the second candle will be bearish. The opposite is true if the general direction is fading, the second candle will be bullish.
- Candle shades should be equal. If the pattern is in an upward direction, the upper shadows of the two candles should be equal. If the pattern is at the end of a bearish trend, the lower shadows of the two candlesticks should be at one level.
- For example, it is possible that the real object of the first candle is larger than the second, but once the shadows are equal, we can call it the model of the peaks and bottoms as in the previous illustration.
- Technical analysis and outlook for most currencies - commodities and Shares for 2019 05:20 pm 2019-01-01
- The last part: the difference between correction and reflection and how to trade them? 09:36 am 2018-12-18
- Difference between correction and reversal and how to trade them? 08:04 am 2018-12-17
- Dogecoin .. Electronic currency arose as a result of irony 03:54 pm 2018-01-26
- Currency and commodity analysis for 2018 05:14 pm 2018-01-01