Fundamentals Flashcards
How to keep us from failing victim to Everyday emotion and delusion; when our portfolio, all of the fears that we can imagine are dragged out;recession,debt,war,Budget,bank failures,etc; that something is what ?
Technical Analysis;because it generates useful information,which if used for nothing more than uncovering and organising Facts about market behaviour, will increase the investors understanding of the market.
Why bad investors/speculators lose money ?
- inability to transform their analysis into sound practice.
The Inabilities to bridge the vital GAP between analysis and action requires ?
Bridging the vital gaps between analysis and action requires overcoming the threats of Fear , Greed and Hope.
How to overcome Fear , Greed &; Hope ?
Controlling impatience & the desire to STRAY away from a sound method to something new during times of temporary adversity. Y
How to Control impatience & the desire to STRAY away from a sound method to something new during times of temporary adversity ?
Having the Discipline to Believe what you see and to follow the indications from Sound methods, even though they contradict what everyone else is saying or what seems to be the correct course of action.
What benefits does Japanese Candlestick charting offers ?
The Tool helps Sort and Control the constant Disruption and continuous outside influences on sound stock and future market analysis.
What difference compared to western charts?
Leads to quicker and easier insight to recent trading psychology.
Japanese candlestick offers a quick picture of ?
Short-Term Trading.
Japanese candlestick offers a quick picture of studying the ?
Effect, not the Cause.
Prices are driven by investors ‘s psychology influenced by ?
Emotions of Fear , Greed & hope.
What does Japanese candlesticks reads ?
The Changes in the makeup of the investor’s interpretations of value.
More than just a method of pattern recognition, candlesticks shows the interaction between?
Buyers & Sellers.
What is Japanese candlesticks works well with ?
Stocks & commodities.
What is high price ?
The highest price that the issue traded that day.
The Body
Makes up the difference between the Open and Close.
When the body is Black
Means Closing price was Lower than the Opening price.
The Body is white
The Closing price is higher than the opening price.
What is define as ‘LONG’?
Long describes the Length of the candlesticks body, the difference between the open and the close price.
‘LONG DAY’ is what ?
A LONG DAY, represents a A large price movement for the day, in other words the open and close price were considerably different.
Describe MARUNOZU ?
Means close-cropped
Describe Black Marubozu ?
A Long Black Body with no shadow on either end.
What does Black Marubozu means ?
- an extremely weak line
- Often becomes part of a bearish continuation pattern.
- Bullish reversal pattern,especially in an downtrend.
- Could means a final sell-off ;often 1st day of many bullish reversal patterns.
Describe White marubozu ?
A Long White Body with no shadow on either end.
White Marubozu means ?
- Extremely strong line
- often 1st part of a Bullish continuation.
- Bearish Reversal pattern.
Closing Marubozu?
No shadow extended from close end of the body, whether body is white or black.
White does Closing Marubozu considered ?
A strong line.
Black Closing Marubozu means ?
- Means a weak line.
2. Yasunebike = Black Closing Marubozu.
Open Marubozu ?
Has no shadow extending from the open price end of the body.
If the body is white for Open Marubozu , there will be no lower shadow, what does it indicate?
It is a Bullish Line.
Black Opening Marubozu in Japanese ?
Yoritsuki-Takane
Black Opening Marubozu ?
No upper shadow, is a weak and therefore Bearish Line.
What is Spinning TOP in Japanese ?
Koma
Spinning TOPS ?
Represents indecision between the Bulls and the Bears.
Describe Spinning TOPS ?
Small real bodies with upper and lower shadows that are of greater length than the body’s length.
Describe DOJI ?
When the Body Of a candle line is so small that the open and the close prices are equal.
DOJI means ?
Simultaneous or Concurrent Lines
DOJI also means ?
Bungle- Carried out task clumsily.
Goof - a foolish person/mistake
JUJI means ?
Cross
Describe Long-legged DOJI (JUJI) ?
Has Long upper and lower shadows in the middle of the day’s trading range, clearly reflecting the indecision of buyers and sellers.
Gravestone Doji (Tohba)
Another form of Doji Day. It develops when The Doji is at or Near the Low Of the Day.
Dragonfly Donji(Tonbo)
Occurs when the open and close are at the high of the day.
Tonbo line with a very Long lower shadow(tail/ Shitahagi) is also known as ?
Takuri line
Four Price Doji?
Occurs when all the four price components are equal. Open High Low Close
STARS (HOSHI)
Appears whenever a small body gaps above or below the previous day’s LONG Body.
Ideally the GAP should encompass the Shadows.
Paper UMBRELLA (KARAKASA)
- Strong Reversal implication
- Two of the Umbrella Lines are
Hammer
Hanging Man
Depending upon their location in the trend Of the market.
The Shadows (KAGE)
Represent the High& Low prices reached during the Trading Day.
Upper Shadow (UWA-KAGE)
Represent High price.
Lower Shadow (SHITA-KAGE)
Represent the Lower price.
Ha-ka-I-Shi (GraveStone) Doji develops when the Doji is at ?
Or very near ,the Low of the Day.
Gravestone Doji means
Bearish-Price open and trade higher all Day Only to close where they open.
The Gravestone Doji at the market TOP means another version of
Shooting Star
The difference it has a smaller Body
While no Body for Gravestone Doji
Dragonfly Doji similar to Two Candle Line , they are
Hammer
Hanged Man
Depending on the location in the trend of the market.
Attempt to identify candle patterns universally fell into 2 Categories, what are they ?
- Those that seemed to work well all the time so Do not need Confirmation.
- Those Never seemed to work well so will need Confirmation.
