3. Simple Candlestick Formations Flashcards
What is this candle called?
Big Candle
What do “Big Candles” indicate?
Indicates a price movement in the same direction as the candlestick, can be traded effectively when they occur in the direction of a dominating trend
What is this candlestick called?
Dragonfly Doji
What do Dragonfly Doji’s indicate?
In a bullish trend it eans demand exceeds supply and prices can continue to rise.
In a bearish trend it indicates a beginning reveral.
What is this candlestick called?
Gravestone Doji
What do gravestone doji’s indicate?
Signals a downwards trend, and when at the top of a price movement indicates a beginning reversal
What is this candlestick called?
Hammer
What does the “hammer” indicate?
In a downwards trend it indicates bullish tendencies and can be an indicator for a reversal
What is this candlestick called?
Inverted Hammer
What does the inverted hammer indicate?
It indicates beginning bearish tendancies in an uptrend and can be a first sign for a reversal, if the body is especially small it is considered a shooting star and becomes an even stronger indicator of a reversal
What is this candlestick called?
Inverted Black Hammer
What does the inverted black hammer indicate?
A hammer formation in bear trend is considered a bottom reversal signal, when it occurs after a downtrend it is an indicator for the beginnning of an uptrend
What is this candlestick called?
Long Lower Shadow
What does the long lower shadow indicate?
Similar to the hammer, the difference being its longer lower wick, it indicates a very strong reversal. Especially around a price support level, great indicator for a beginning bullish trend
What is this candlestick called?
Long Upper Shadow
What is this candlestick called?
Marubozu
What does a marubozu indicate?
Indicates a strong price movement that is likely to continue, works in both directions
What is this candlestick called?
Long Legged Doji
What does the long legged doji indicate?
This formation occurs both directions are balanced, as soon as the market breaks out of this balance, it signals the beginning of a longer movement
