Topic: Candle Stick reading for Beginners (Read 281 times)

some people believe that reading a candle stick will help trade. I'm still dizzy to learn this, and it's confusing.
for me it's only suitable for long-term trading.

Normally candlestick pattern  will be work in higher times frame,  and this strategy will be more accurate for swing  trading.  For the day trading , will be better to take combination between candlestick pattern and also price pattern.  Some price pattern that work in trading is bullish/bearish flag,  shoud and head shoulder, pennant,  etc.

Everybody wants to be a professional cryptocurrency trader as a trader candlestick pattern is very important part of trading platform. If you want to learn about candlestick pattern so you must read babypips because this is a number one learning website for Forex and cryptocurrency trading so he should learn then start cryptocurrency trading.

Thanks for this. I was a bit confused about candle sticks. And I am glad there is someone here who added an image for me to well understand  those candle differences. A newbie like you had a great contribution and I appreciate the effort you made in posting like this.

This is good but still not for newbies/beginners. They (or we) need to at least learn the basic without using an automatic detection tools or bots. Anyway, thanks for sharing.


Haha. Thanks. So kind, bro/sis.

Candle stick is really a thing when you're trading. And what's more helpful is candlestick reading plus the indicators.

Suppose to do the same thing but you have done it already and this do deserve some points 

Candle stick reading is really just a basic thing you should know when it comes to technical aspects.Even if you are just a beginner learning up these things would be quite helpful on your
trading career it might not be accurate or precise anytime but  having some analysis would be always better than have nothing.

Great post, glad to see somebody contributing value here. I recommend all users who finishing reading this then move onto learning about different types of limit orders, that way you wont end up losing 70% of your portfolio like a lot of people seem to complain about around here.

Jr. Member can post images if he will upgrade to a copper membership. 


Yeah i believe so since some newbies doesn't equip enough to use this candle sticks, well actually even some of us here will find this a little bit confusing.

I would recommend to avoid using such services for beginners especially. Better concentrate on your risk/reward ratio

They are even more helpful with levels, I think.

This is a very resourceful thread for traders and the links to further study. I like this a lot.

I trade with candlestick too and they are very helpful with other indicators to show you the direction or trend. Nice job brother.

Thank you very much, I am always happy being because of a lot of free knowledge being shared by different individuals here. I am not much of a TA expert as I never particularly learnt the terms associated with the candles, but I can relate with each of those candles as I usually study the candle movement before making trade decisions especially in identifying the support and resistance zone

https://coinalyze.net/candlestick-patterns/ auto detects candlestick patterns on multiple timeframes

Just to help his/her, I didn't know if a Jr. Member can (now) post an image, so I will do this:

INVERTED HAMMER AND SHOOTING STAR


HARAMI

• Types of Harami
• 

ENGULFING


BULLISH ENGULFING


BEARISH ENGULFING


PIERCING


DARK CLOUD COVER


BULLISH KICKER

I've been using Candlestick Chart for almost a month now rather than the Lines or Bars, especially in IQ Option trading - sometimes I used Heikin-Ashi though, similar in Candlestick. I didn't know that it was founded by a Japanese.

---

Anyway...

First, I would like to commend you for posting this information instead of complaining about this new and enhanced merit system implemented by theymos.

Second, this post is really necessary if you're really a beginner, like me. Kuddos.

Last, can you please provide some links or website where we can read more of this and that, do's and don't's of trading? I would appreciate that, if you will.

Before we pursue, the Candlestick Chart was used in the 18th century, founded by Mr. Munehisa Homma. He is a Japanese so they called it Japanese Candlestick.Then it was introduced into the stock market and developed patterns based on supply and demand and emotion of traders to know where the price will go.

CANDLE -Is a chart style where he says what is OPEN and CLOSE price, HIGHEST and LOWEST price on a trading day (daily chart). There are many chart style like the candle, bar, line, mountain etc. But let's focus on candle because that's what most people use in trading today.

In candlestick trading,it is primarily for our entry(buy) and exit (sell), we look at the Sign Of Reversal (SOR) if the price goes up or down.

Sign Of Reversal are the "WARNING / CAUTION / SIGNAL / SIGN" which can change or reverse a trend (uptrend or downtrend). It's 'MAJOR' change will results in the battle of bulls (buyers) and bears (sellers) and that's where SOR patterns are formed.

This are various types of Candle Stick Patterns.

DOJI -It's a reversal candlestick signal that simply means opening and closing at the same price, it's a signal that the trend will change but it all depends on his position, if it's in the UPTREND it a sign that it will go down, on the DOWNTREND will go up.
              


DRAGONFLY DOJI -Is a helpful Candlestick pattern to help traders visually see where support and demand was located. After a downtrend, it a signal to traders that the downtrend could be over and that short positions could potentially be covered.

GRAVESTONE DOJI -Is a reversal pattern to help traders visually see where resistance and supply is likely located. After an uptrend, it can signal to traders that the uptrend could be over and that long positions could potentially be exited.

LONG-LEGGED DOJI -Indicates that prices traded well above and below the session's opening level, but closed virtually even with the open.

HAMMER -It is hammer-shaped candlestick bullish reversal pattern that if found in the downtrends, this indicates that after a downtrend, it signifies that an uptrend is on the way. If the price pattern of the stock is always bouncing 'immediately' after the SOR candle, the more accurate it is because stock traders are expecting that effect after the SOR candle.

HANGING MAN -It's opposite hammer that if located in the uptrend that's a sign that it will down.

INVERTED HAMMER and SHOOTING STAR -These two are reversal candlestick signals opposite the hammer and hanging man, their long shadow are on top and also have small body. That means buying bulls have a heavy buying price to push the price upward, notice that its long upper shadow. But the bears (sellers) have also been pushed. This is the reason why they are 'WEAKER' SOR because the bulls eventually lost. So better if there is a confirmation candle to see if they succeed in reversing. If see it the uptrend it signals it will go down (Shooting Star) and in the down trend (Inverted hammer).https://i.postimg.cc/RCc9nhx8/inverted_hammer_shooting_star.jpg

HARAMI -Is the japanese word for pregnant. This consist of mother and a baby, it indicates when the baby gets smaller, the signal grows, so if the doji is a baby the stronger the SOR.
https://i.postimg.cc/qgVzw5vT/index.png This are the types of harami https://i.postimg.cc/FsC9hq4s/HARAMI.jpg.

ENGULFING -engulf means completely covered it's another SOR pattern that opposite to harami, if harami baby is on the right side this is on the left side. Bearish if its on the uptrend(the second candle should be red) and bullish if its on the downtrend (second candle should be green) https://i.postimg.cc/tCpL8znR/images.png.

BULLISH ENGOLFING -This pattern means that bulls have taken control. In a downward trend, after several red candles, the bulls suddenly showed interest. This signals can be reversed.
If the candle is less than 25% compared to the 2nd candle and especially if the 2nd candle does not have a shadow, that's a very powerful SOR. https://i.postimg.cc/htKs3RZz/buliish_engulfing.jpg

BEARISH ENGULFING -Means that bears have taken control. In the upward trend, after several green candles, it has shown heavy selling, lock in profit or bad news, etc etc, as well as bulls. https://i.postimg.cc/26DV78FK/bearish_engulfing_final.jpg

PIERCING -This is one of the few important pattern in TA, In a 'downtrend', and gap down on open price. This means that the bulls were defeated. Which is a very strong sign that keeps the price down. 'THEN' all of a sudden suddenly the price reverse and here comes the bulls! HEAVY BUYING! pushing the price pushed and closed 'more than' 50% of the previous candle. https://i.postimg.cc/6qnSCsYW/index.jpg

DARK CLOUD COVER -The opposite of the above, In an 'uptrend', and the price is up. This means that the bulls, bulls win in pre-opening battle. Which is very strong sign that continues to increase, but suddenly, here come the bears! HEAVY SELLING! lowered the price and then closed 'more than' 50% of the previous candle. https://i.postimg.cc/W3RwgdKZ/image.png

BULLISH KICKER -This is the most important that you shouldn't have miss because it is the most powerful SOR where you can gain your profit. Mostly it will be triggered if the stock has surprise news or update. It is the most bearish and bullish among all candle patterns if you see that the candle has no shadow both high and low. Green candle means the bulls have a complete control they never let the price go down by heavy buying that push the price up until closing.

https://i.postimg.cc/C5WybdbZ/image.png

BEARISH KICKER -The same also with Bullish Kicker with no shadow in the high and low but opposite, it is on Red candle this means that the bears has a complete control of the price and did not allow the price went up by heavy selling that makes the price went dip.