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Models of individual Japanese candles Part II
22-08-2017 | No Views : 617
We will discuss in the second part of the individual Japanese candlestick models three models and are peaks and bottoms, roller Doji model Marubozu.
Doji Model:We now turn to model Doji, which is the most famous Japanese candles, the most presence on the chart, indicating that the neutrality controls on prices, because the sellers equal with buyers.
In the model Doji, even with the opening price of the closing price at one level, or the difference between them very little to become the real body size of a small candle, so to become a candle Doge must be a thin line of her body.
Doji reflect a strong conflict between the selling and purchasing power, Over the given period of time there will be wrestling between buyers and sellers pay the price to move higher and lower than the opening price, but during the end of the session the price of a new back to the opening or near the price. Where buyers or sellers could not control the trades and the result was a draw.
The following candlestick is important, as it indicates who controls the price, if the following candlestick is a bullish doji, it means buyers win in the conflict that was between them and the sellers reflected on the graph form the form, and vice versa for the descending candlestick that comes after the model, Reflect the sellers' victory in the conflict.
The model is not a high-profile model and does not rely heavily on trading, but we do not care about modeling as mentioned in previous articles.
Vertices and rotary bottomsThe model of vertices and rotary peaks is similar to the Doji pattern in terms of formation psychology. This model reflects the current market uncertainty and the parity of selling forces and purchasing power.
As we see in the previous illustration, the real body of the candle is small in the model of vertices and rotary bottoms, but larger than the body size in the doji model. Throughout the trading session there is a strong struggle between the selling and buying forces pushing the price to the upside and the drop above and below the opening price. However, as the close of trades close within the specified time period, the price is close to the beginning of the trades. There is a relatively small difference between the opening price and the closing price. Relatively larger between the highest price and the lowest price.
When the pattern of vertices and rotary peaks is shown on the chart, it does not reflect the trend, while indicating the weak start of the weak trend, as with the previous Doji candlestick pattern.
Marubozu Model:In this model, the candle is a real object that has no upper or lower shadows. This candle refers to the acquisition of one of the two forces, whether selling forces or purchasing power to trade in full during a specified period of time.
Marubozu Rising Candle: A long white candle opening price equal to the lowest price and closing price is equal to the highest price. This candle indicates the acquisition of purchasing power completely on the trading of the husband during a certain period. This model could be a reflection of the start of a new or sustained upward trend.
Marubozu Down: A long black candle where the opening price is equal to the highest price and the closing price is equal to the lowest price. This candlestick indicates the acquisition of the selling forces completely on the pair's trading during a certain period. This pattern may be reflected in a new or continuing downtrend.
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