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    Why I Love Candlestick Charts

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    dilipp_2
    1) The document discusses why the author loves candlestick charts and analyzes the price action and candlestick patterns of a particular stock. 2) An engulfing candlestick pattern formed, indicating that sellers had taken control of the stock, followed by narrow range candles showing weakness from buyers. 3) Another engulfing candlestick later formed, showing that sellers had completely overwhelmed buyers, causing the stock to tank.

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    Why I Love Candlestick Charts

    Uploaded by

    dilipp_2
    96 views2 pages
    1) The document discusses why the author loves candlestick charts and analyzes the price action and candlestick patterns of a particular stock. 2) An engulfing candlestick pattern formed, indicating that sellers had taken control of the stock, followed by narrow range candles showing weakness from buyers. 3) Another engulfing candlestick later formed, showing that sellers had completely overwhelmed buyers, causing the stock to tank.

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    on trading

    Original Title

    Candlestick Signals

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    1) The document discusses why the author loves candlestick charts and analyzes the price action and candlestick patterns of a particular stock. 2) An engulfing candlestick pattern formed, indicating that sellers had taken control of the stock, followed by narrow range candles showing weakness from buyers. 3) Another engulfing candlestick later formed, showing that sellers had completely overwhelmed buyers, causing the stock to tank.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    96 views2 pages

    Why I Love Candlestick Charts

    Uploaded by

    dilipp_2
    1) The document discusses why the author loves candlestick charts and analyzes the price action and candlestick patterns of a particular stock. 2) An engulfing candlestick pattern formed, indicating that sellers had taken control of the stock, followed by narrow range candles showing weakness from buyers. 3) Another engulfing candlestick later formed, showing that sellers had completely overwhelmed buyers, causing the stock to tank.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    CANDLESTICK SIGNALS

    Why I Love Candlestick Charts


    I came across this stock the other day and I just became fascinated with the rice
    action in this stock! It a"so reminded me why I am such a bi# fan of cand"estick
    charts!
    Take a "ook at the fo""owin# chart and fo""ow a"on# be"ow!!!
    $% This stock was in a nice utrend unti" the bi# #a down with a wide ran#e
    cand"e on massi&e &o"ume! These tyes of mo&es are institutiona""y dri&en and
    often i#nite new trends!
    '% After a short two(day bounce) a bearish en#u"fin# cand"e forms! Engulfing
    candles are my all time favorite candlestick pattern. *hi"e other cand"estick
    atterns show a s"owin# of momentum) engulfing candles tell you for a fact
    that the other side has taken control of the stock.
    +f course this can chan#e on the fo""owin# day but at that oint in time) you ha&e
    confirmation that a re&ersa" is takin# "ace!
    +&er the ne,t se&era" days) narrow ran#e cand"es de&e"o that stay near the
    bottom of that en#u"fin# cand"e! This shows weakness on the art of the buyers!
    If they can-t e&en mo&e the stock &ery far into the rior days ran#e) then you
    ha&e to assume that se""ers wi"" take contro" of the stock a#ain! And they did!
    .% After a fi&e day ra""y another en#u"fin# cand"e forms! *e know for a fact that
    se""ers ha&e com"ete"y o&erwhe"med the buyers! Those who bou#ht into this
    ra""y are now /uestionin# their decision! 0ear crees in and the stock tanks!
    1% This stock first showed u on my scan with the doji at 2''!33! I thou#ht) 45ey
    this mi#ht be a #reat shortin# oortunity!4 *hi"e a doji te""s you that a s"owin# of
    momentum has occurred) it rea""y doesn-t si#na" a re&ersa" in and of itse"f! It te""s
    you that a re&ersa" could haen! It didn-t!
    So now we ha&e an interestin# ra""y! It started out innocent enou#h with just a
    cou"e of narrow ran#e cand"es) but now it has e,anded into a stron# ra""y!
    Greed is be#innin# to set in as the dai"y ran#es e,and!
    This stock has retraced too much of the rior swin# for me to consider shortin#
    this stock now) but at the &ery "east this stock wi"" conso"idate! It may re&erse!
    5eck) maybe another en#u"fin# cand"e wi"" de&e"o!
    So) whi"e a re#u"ar o"d bar chart #i&es you the same information) a cand"estick
    chart aints ictures of human emotions! That-s why I "o&e cand"estick charts! As
    a discretionary trader) I need these ictures to make #ood trades6

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