Japanese candles
A very interesting and effective method of predicting rates in the foreign exchange market for many years continues to be a Forex candle analysis or, in other words, the use of patterns of technical analysis. The basic principle of Forex candlestick analysis is to find on the price chart standard patterns (reversal or continuation of the trend), the interpretation of which allows with sufficient accuracy to predict the further behavior of the financial instrument quotes.
Analysis of combinations of Japanese candlesticks and patterns of technical analysis - accessible, effective, free
At ForTrader.org we look at the basic Forex candlestick patterns, or candlestick patterns that traders have been using for decades, as well as the very new and improved figures of technical analysis, developed by the current and popular trading strategies of today. But most importantly, the analysis of Japanese candlesticks is suitable for both experienced traders and novice speculators. It is proved by stock exchange history.
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Добрый день, уважаемые новички трейдинга и практикующие трейдеры! Мы продолжаем наш увлекательный курс лекций по теме гармоничных паттернов Гартли. И сегодня мы поговорим о такой замечательной фигуре как гармонический паттерн «Бабочка Гартли»! История открытия гармонического паттерна «Бабочка Гартли» Паттерн «Бабочка Гартли» был графически «открыт» в 1935 году, но все соотношения по уровням Фибоначчи для уточнения «крыльев» бабочки были рассчитаны в более поздний период учениками и последователями великого Гартли. Именно они разработали и дали математическое определение нескольким основным вариациям данного гармонического паттерна с разными уровнями Фибоначчи. Для начала рассмотрим эталонные классические модели — наиболее красивые и гармоничные. Паттерн «Бабочка Гартли» — на есть место…
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Мы продолжаем цикл статей, посвященных гармоническим паттернам Гартли на рынке . Сегодня рассмотрим условия формирования и принципы использования в торговле гармонического паттерна AB=CD. Как образуется гармонический паттерн AB=CD Равнозначные отношения цены, которые выражаются через соотношения Фибоначчи, образуют одну из интереснейших гармонических моделей — паттерн AB=CD, который, по сути, является главной составляющей всех остальных моделей. С одной стороны, такой гармонический паттерн будет являться коррекцией (если смотреть с точки зрения волновой теории Эллиотта), с другой — такой паттерн, в большинстве случаев, является разворотной моделью. Виды гармонической модели AB=CD Модель AB=CD подразделяется на 2 вида: Гармонический паттерн AB=CD с ретрейсментом точки С равным 61.8% и проекцией ВС=161.8%.…
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Good afternoon, dear colleagues! From today we are starting a series of articles devoted to Gartley harmonic patterns. Probably, all traders, especially experienced ones, have ever heard, used or put into practice this method of market analysis. For those who are just getting acquainted with this tool, I offer a brief excursion into the history and theory of harmonic patterns. What are harmonic patterns? Harmonic patterns were described by stock theorists Harold M. Gartley, Scott M. Carney and Larry Pasavento. But their discoverer was Gartley, who published his work "Profits In The Stock Market" in 1935. In this work, the author mentions a chart pattern that can be confused with the famous Elliott Wave. The similarity...
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Using graphical models in their pure form can seem quite risky at first glance, so traders build a system of filters that allow them to select more reliable models. Time and correction dependencies as well as separate indicators are used as such filters. For example, a trader decides to make a deal only if there is a divergence on the MACD along with the "Three Indians" reversal pattern. However, such a system can no longer be attributed to the Price Action methods, which involve trading without indicators. Parent and child patterns As an alternative to the use of calculated indicators as filters, the interaction of patterns can be used. Many of them have a wave structure,...
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Противники гармонической торговли утверждают, что симметрия рынка надумана, и движения рыночных котировок не могут вписываться в заранее установленную схему. Однако методы данного направления технического анализа продолжают работать, позволяя трейдеру определить важные уровни поддержки и сопротивления, а также выявить потенциальные точки разворота рынка. Графическая модель «Три шага» — путь к паттерну «Три индейца» Пусть графические конфигурации, использующие зависимости Фибоначчи, возникают не так часто, тем не менее, их эффективность проверена временем. Сегодня мы поговорим о такой разновидности известной графической модели «Три индейца», описанной Линдой Рашке и Лоуренсом Коннорсом в своем бестселлере «Биржевые секреты», как паттерн «Три шага». Как бы детально не подошли к…
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The more a trader is present in the market, the more he or she becomes convinced of its harmony. It doesn't matter what instruments you trade, what time intervals you use or what trading style you prefer - understanding the patterns of market price movements comes from understanding the clear interrelationships that form in the interaction of supply and demand. At a certain point in time, a trader discovers the patterns of harmonic trading. We will tell you about the method of using the harmonic patterns of Gartley to find the reversal points of the markets. Harmonic Pattern AB=CD In a simplified form, any graphical configuration can result from the failure of the market to form a new extremum (1-2-3 pattern), or from the successful testing of a previously formed maximum (minimum...
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Technical analysis figures and candlestick patterns are often used by traders both as an independent form of analysis and as a supplement to other forecasting techniques. This course of lectures can be useful for both novice traders and experienced masters. I would like to start this series with the reversal candlestick patterns "Hammer" and "Hangman". Description of the "Hammer" and "Hangman" reversal candlestick patterns The "Hammer" and "Hangman" candlestick patterns consist of one candle. They have long lower shadows and small bodies, located at or very close to the top of the daily trading range. The "Hammer" candlestick pattern occurs on a downtrend and is so named because it forges the bottom, and the Japanese word "tonkachi" for this pattern,...
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Price figures are often used by traders in technical analysis both as its independent type and as addition to other forecasting techniques. This course of lectures can be useful both for beginners and experienced traders. I would like to begin this series with reversal candlestick patterns - "Hammer" and "Hangman". Fig. 1. Reversal candlestick patterns: "Hammer" and "Hangman" (Kanazuchi/Tonkachi and Kubitsuri). Description of the reversal price patterns "Hammer" and "Hangman" The Hammer and the Hangman consist of one candle (see Fig. 1). They have long lower shadows and small bodies that are at or very close to the top of the daily trading range. The hammer occurs on a downtrend...
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The candlestick model "Spike" is characterized by a strong signal of change in the trend direction, so it is referred to the reversal patterns of technical analysis. The "Spike" candlestick pattern is formed after a strong, almost sheer movement up or down, and the same sharp, impulsive movement in the opposite direction. Because of this, a pattern with a sharp end is formed on the price chart, which is called "Ship". As a rule, the price movements in either direction are quite fast and characterized by long candles without zones of consolidation at the bottom or top. Trading with the candlestick pattern "Spike" When the candlestick pattern "Spike" appears on different timeframes, it is recommended to open a position already after the formation of a wedge in the...
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The Doji Star candlestick pattern is a warning that the current trend is close to a reversal. In order to state the appearance of this price pattern, it is necessary to form a candle with a long body, the color of which reflects the current trend. Further, the next day the opening and closing prices should be equal. Such weakening for the current trend is a cause for concern. A perfectly defined doji star signal is an excellent example of the use of the Japanese candlestick chart method. The signal would not be so clear, if we used another method of graphical analysis. Fig. 1. Graphical example of bearish and bullish Doji stars Rules for Doji Star Model Formation To summarize the above: The first day is long. The second day is Doji.....
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One of the strongest trend reversal patterns is the Head and shoulders pattern. It may be formed both in an uptrend and in a downtrend, in which case it is called an inverted head and shoulders pattern. According to the name, this figure has two shoulders and a head, which is higher than the shoulders. In the picture we see that the price reaches the top and rolls back to the level of support, which is the first left shoulder, after crossing resistance (it is slang for "neckline"). Then the price turns around and renews the maximums, after which it rolls back to the support level again. Then the last growth attempt takes place, which turns out to be...
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The Triple Top and Triple Bottom reversal patterns have the same economic sense of formation as Double Top and Double Bottom, with the only difference being that price attempts to break through a certain level three times to continue the direction of the original trend. Triple Top" pattern formation The Triple Top reversal pattern formation mechanism is as follows: price gets over the resistance level, which then becomes support, and starts growing up to new resistance. Having reached it, the price rolls back to the support and tries to grow again, but in the area of the first summit it cannot overcome it and rolls back. After that, unlike the double top, the price doesn't sell off, but makes efforts...
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"Bowl" is a rather interesting price reversal pattern in terms of its construction. It is formed less often than other reversal patterns, but that does not make it less effective. Let's consider an example of the uptrend with formation of the "Inverted Bowl". The trend moves upwards progressively with the formation of new peaks (highs). When the price reaches certain values, it begins to slowly "slide" downward without forming new tops. Once the price overcomes several support lines, it begins to gather momentum and speeds up its fall. Inverted Bowl" candlestick pattern trading signals The entry point of the "Inverted Bowl" pattern of technical analysis can be determined by various methods - with the help of volumes, Fibo levels and so on. Also one of...
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Like other types of graphical triangles ("Pennant", "Wedge", etc.), the figures of technical analysis "Upward Triangle" and "Downward Triangle" are more price models of continuation of the trend, rather than reversal patterns. Trading signals of technical analysis figures "Triangles - ascending and descending" The distinguishing feature of ascending and descending triangles from symmetrical and expanding triangles is the presence of a clearly defined horizontal support line (in a descending triangle) or resistance (in an ascending one). In the ascending triangle price pattern, there is a pattern of gradual decrease in the waves-corrections after the price rebounds from the horizontal resistance level. After the breakdown of this level, the price moves towards the main trend at a distance equal to the height of the triangle base. In the "Downtrending Triangle" pattern.
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The figure of technical analysis "wedge" is similar to the price models "Vympel" and "Triangle" by its form and time of formation. But still "wedge" has its own features: - In contrast to the figure of "Vympel", "Wedge" does not have a pronounced preceding trend. - After the price leaves "Klin" consolidation zone, when breaking through the price pattern it is impossible to detect the final destination of the price movement, we can only speak about the continuation of the initial trend. - Another distinctive feature of the "Wedge" price pattern is its more noticeable slope angle to the main movement. It means the correction pullback, following the logic of the "wedge" will be deeper than, for example, for "Pennant" or "Flag". Thus.
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Price pattern "Rectangle" is a classic example of price consolidation in a narrow range before further market movement in the chosen direction. Rectangle" price pattern, located in the consolidation area, as a rule, has clear and pronounced horizontal support and resistance levels (without updating of maximums and minimums). In the stock markets such price pattern appears at the moments when traders and investors expect the release of important news, the results of which they doubt. After the publication, confirming the expectations of speculators, they continue to move the price in the previously chosen direction. Working out of the technical analysis pattern "Rectangle" After breaking through the resistance level in the bullish price pattern "Rectangle" the price passes the distance equal to the height of the rectangle. In a bearish price pattern...
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The figure of technical analysis "Pennant" is a frequent model of continuation of a trend on various stock exchanges, including . In its essence, "Pennant" is similar to the continuation pattern "Flag" with the only difference that it has the form of a converging triangle. This figure of technical analysis is a corrective movement with a narrowing range after a strong trend up or down. In fact, this is a period of fixing profits before a new breakthrough in prices. Trading signals of the figure of technical analysis "Pennant". If the trend is ascending, the algorithm of working with the figure "Pennant" is as follows: when breaking through the resistance line we open a long position with Stop-Loss just below the minimum point of correction and the potential target, equal to the movement of the initial trend is up. At.
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The technical analysis pattern "Flag" appears on price charts frequently and on almost all timeframes. It can be identified both on five-minute candles and on the weekly chart. The "Flag" pattern most often emerges after a strong price movement of the selected asset in one direction and represents a narrow consolidation zone, usually in the opposite direction from the initial impulse. The components of the figure of technical analysis "Flag" In the figure "Flag" distinguish: "flagpole" - the initial price impulse, and the "flag" itself - consolidation, a narrow price channel bounded by support and resistance levels. In most cases the length of "flag" is one third of the length of "flagpole". Trading signals of the technical analysis figure "Flag" Technical analysis figure...
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One of the most controversial graphical figures of technical analysis of the continuation of the trend on , are triangles. In fact, triangle shapes are similar in their construction to "Pennants" and "Flags" but without the initial upward/downward movement. Technical Analysis Trading Signals Symmetrical Triangle What is a symmetrical triangle and how is it formed? When the bulls and bears are in equilibrium in the market, and volatility gradually subsides, the price is "clamped" in a narrow range. We can make a symmetrical triangle with at least two points of lows and two points of highs in this narrowing formation. As a rule, a symmetrical triangle pattern will look like two converging support and resistance lines. After breaking through a narrow range and tapering...
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Like other types of graphical triangles ("Pennant", "Wedge", etc.), the figures of technical analysis "Upward Triangle" and "Downward Triangle" are more price models of continuation of the trend, rather than reversal patterns. Trading signals of technical analysis figures "Triangles - ascending and descending" The distinguishing feature of ascending and descending triangles from symmetrical and expanding triangles is the presence of a clearly defined horizontal support line (in a descending triangle) or resistance (in an ascending one). In the ascending triangle price pattern, there is a pattern of gradual decrease in the waves-corrections after the price rebounds from the horizontal resistance level. After the breakdown of this level, the price moves towards the main trend at a distance equal to the height of the triangle base. In the "Downtrending Triangle" pattern.
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