There are many models of candles, but only a few are really worth knowing. Here are 10 models of candles that are worth looking for. Remember, these templates are only useful if you understand what is happening in each model.They must be combined with other forms of technical analysis to be really useful. For example, if you see one of these patterns on the daily chart, switch to the hourly chart. Does the hourly chart match your Best forex indicator expectations on the daily chart? If so, the chances of an inversion increase.
The following models are divided into two parts: bullish models and bearish models. These are inversion models that occur after a bullish model or a rally (bearish models).
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bullish candlestick pattern
Ok, let’s start with the first …
This is my favorite candle model of all time. This model consists of two candles. The first day is a narrow sail that closes during the day. The sellers always control the stock, but as it is a low candle and the volatility is low, the sellers are not very aggressive. The second day is a big candle that “swallows” the body of the first candle and closes near the top of the row. Buyers have overwhelmed sellers (demand is greater than supply). Buyers are ready to take control of this action!
As discussed on the previous page, the action was opened, then the sellers finally took control of the stock and pushed it further. At the end of the day, buyers won and had enough power to close the stock at the top of the series. Hammers can develop after a group of stop-loss orders have been hit. This is when professional traders come in to bargain at a lower price. Learn more about how to change a hammer candle pattern.
When you see this model, the first thing you realize is that the previous impulse stopped. The first day you will see a long-range candlestick pattern that closes near the bottom. Vendors always have control of this action. On the second day, there is only a narrow sail, closed during the day. Note: Do not confuse this pattern with the surrounding pattern. The candles are opposite