Japanese Candles
Japanese candle patterns are clear and easy to identify, demonstrating highly accurate changes in investor confidence. The Japanese sail patterns are made up of approximately 40 investments patterns of continuation of which all have a credible probability of indicating the future and correct direction of the price movement. However, the 12 largest patterns of Japanese candles offer more than enough operating situations for most investors. There are only 12 major patterns that must be memorized but this does not mean that secondary patterns should not be considered. In fact, these signals are extremely effective for the production of profits. However, it is shown that some of them rarely occur.
The analysis of trading of the Japanese candles does not require to know complex formulas or ratios and does not require much education to use the signals with efficiency. Signals and patterns are easy to see as illustrated below. As you can see, an action price closure higher than when it has opened and will produce a white or green candle. A low-action price closure when you have opened a black or red candle. The formed pictures are called "the body" and the ends of the daily price movement are represented by the lines extending from the body. Those lines are called shadows or tails. When an action price closes where it opened or very close to where it has opened, it is called a "Doji". A hollow candle is formed when the market closes higher than its opening price and a solid (or refilled) candle is formed when the market closes lower than the opening price.
The 12 patterns of Japanese candles illustrate most of the signs. The definition of "major" means two things. First, they happen many times in price movement so it benefits the production of profitable operations. Second, they clearly indicate price investments with sufficient force to ensure the placement of an operation. The 12 largest patterns of Japanese candles are listed below and as you can see each sailing formation has a unique name. Some have Japanese names and others have English names
The 12 largest patterns of Japanese candles are: Doji, Bullish engulfing, Bearish engulfing, Hammer signal and hanging Man, piercing Pattern, Dark Cloud Cover, Bullish Harami, Bearish Harami, Morning star, Evening star, kicker signals (bass and bull), shooting Star, and inverted Hammer.
The average investor does not have to rely on a professional investment during the creation of Japanese candles. The recommendations of the professionals will not always be the best for your interest. Either with a totally unknown or very sophisticated investment concept in the investment experience, the trading formations in Japanese candles are easily used. The signs and patterns are easy to see and their interpretations are reliable.
Follow my articles we will continue to teach you which are the most revealing candles to guide us in an investment.
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