|
Written by Forexmotion
|
|
Thursday, 15 January 2009 16:21 |
Documento sin título
 |
Index:
|
| 1.Introduction. |
| 2.Large black and white candles. |
| 3.Marabozu sessions. |
| 4.Small real bodies. |
| 5.Karakasa sessions .
|
| 6.Examples. |
| 7.Spinning tops . |
| 8.DOJIS. |
| 9.Pattern summary I
. |
| 10.Pattern summary II. |
| 11.Pattern summary III. |
| 12.Pattern summary IV. |
| 13.Hammer. |
| 14.Bullish engulfing. |
| 15.Bullish harami. |
|
1.Introduction.
|
- When the real body is black the session has closed below the starting rate.
- When the real body is white the session has closed above the starting rate.
- The lines above and below the candle are known as shadows.
|
| Back to index |
|
2.Large black and white candles.
|
| By large real body, compared to medium or small, we mean a difference between starting and closing prices larger than the real bodies of previous sessions, i.e. a day when buying or selling pressure has dominated. |
 |
| Back to index |
|
3.Marabozu sessions.
|
| Marubozu is the term used when the high or low rates coincide with the starting or closing prices, i.e. the start is the high and the close is the low.
|
 |
 |
 |
 |
| Back to index |
|
4.Small real bodies.
|
- A small real body has a shorter than normal body range between start and close rates.
|
 |
- The shadows are short, otherwise we would have what is known as a spinning top.
|
 |
| Back to index |
|
5.Karakasa sessions.
|
| Karakasa candlesticks are known as umbrellas. They have small black or white real bodies, long shadows, at least double the body size and no second shadow or one less than the size of the body. |
 |
 |
 |
 |
| Back to index |
|
6.Examples.
|
|
|
7.Spinning Tops.
|
- Small real bodies.
- Both the upper and lower shadows are longer than the body.
- Spinning tops can be black or white. This fact is irrelevant as the concept depends on the shadow sizes in comparison to the body.
|
 |
 |
 |
 |
| Back to index |
|
8.DOJIS.
|
- A Doji opens and closes at the same (or practically the same) price. Therefore, the real body does not exist or is extremely small.
- It indicates doubt or indecision
|
 |
 |
 |
 |
| Back to index |
|
9.Pattern summary I.
|
|
|
10.Pattern summary II.
|
|
|
11.Pattern summary III.
|
|
|
12.Pattern summary IV.
|
|
|
13.Hammer.
|
- One line Karakasa pattern after a bearish trend.
- Long lower shadow, at least twice the length of the real body.
- Small real body, black or white (this is of no relevance, although white bodies imply bullishness and are more reliable than black ones), situated towards the end of the session.
|
 |
|
Back to index
|
|
14.Bullish engulfing.
|
- Clearly defined bearish trend.
- A large black candlestick is formed (not medium-large). In some cases it can be white.
- The following session has a small or medium-small real body, which is completely engulfed by the body before. In principle, it is more powerful if it has the opposite color, but it can be identical.
|
 |
|
Back to index
|
|
15.Bullish harami.
|
- Previous clearly defined bearish trend.
- Black real body followed by a white one which completely engulfs its predecessor, i.e. opens lower or at the same price and closes higher or the same as the previous day (only the floor or ceiling can be the same, not both).
- It does not necessarily engulf the shadows, but if it does, it has greater power.
|
 |
|
Back to index
|
|
|
Oriental Techniques 
