Candlestick Basics

 

Candlestick basics: Candlestick charts are an effective way of  seeing price movements. There are two basic candlesticks:

. Bullish candle: When the close is higher than the open (usually green or white)

.Bearish candle: When the close is lower than the open (usually red or black)

 

 

Candlestick parts                                                     

There are three main parts to candlestick:

Upper Shadow: The vertical line between the high of the day and the close(bullish candle)or open(bearish candle)

Real Body: The difference between  the open and close;coloured portion of the candlestick

Lower Shadow: The vertical line between the low of the day and the open(bullish candle)or close (bearish candle)

Candlestick patterns

The power of the candlestick charts is with various candlicksticks forming reversal and continuation patterns.maxmisewealthblogspot.com has many detailed explanations of this candlestick patterns; the links are given below:

.Bullish Engulfing Pattern

.Bearish Engulfing Pattern       

.Dark Cloud Cover

.Piercing Pattern

.Doji

.Dragonfly Doji

.Gravestone Doji

.Evening Star

.Morning Star

.Hammer

 

.Hanging Man

.Inverted Hammer

.Shotting Star

.Harami

.Tweezer Tops & Bottoms