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Lecture 1 Candlestick

The document provides a detailed explanation of important candlestick patterns used in trading to understand market reversals. It outlines key elements of candlesticks and describes ten specific patterns, including their meanings, appearances, and signals. These patterns help traders identify potential bullish or bearish reversals in the market.

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12 views13 pages

Lecture 1 Candlestick

The document provides a detailed explanation of important candlestick patterns used in trading to understand market reversals. It outlines key elements of candlesticks and describes ten specific patterns, including their meanings, appearances, and signals. These patterns help traders identify potential bullish or bearish reversals in the market.

Uploaded by

nts.supermart
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Candlestick Patterns

(Detailed Explanation)
Part - 1
BY: TRADER.USAMAA
YOUTUBE CHANNEL :
HTTPS://YOUTUBE.COM/@CRYPTO.USAMAA?SI=EYXZH8CWKY9MMJ36
Important Candlestick
Patterns
UNDERSTAND MARKET REVERSALS
Candlestick

7 Elements :

1. High
2. Low
3. Open
4. Close
5. Upper wick
6. Lower wick
7. Body
1. Hammer

 Meaning: Bullish reversal after a downtrend.


 Appearance: Small body at the top, long lower shadow.
 Signal: Buyers are stepping in after heavy selling pressure.
2. Hanging Man

•Meaning: Bearish reversal after an uptrend.


•Appearance: Same as Hammer — small body on top, long lower shadow — but appears at market tops.
•Signal: Sellers are beginning to overwhelm buyers
3. Inverted Hammer

•Meaning: Bullish reversal after a downtrend.


•Appearance: Small body at the bottom, long upper shadow.
•Signal: Buying pressure is building, despite initial selling
4. Shooting Star

 Meaning: Bearish reversal after an uptrend.


 Appearance: Small body at the bottom, long upper shadow.
 Signal: Sellers stepping in strongly after buyers tried to push higher.
5. Bullish Spinning Top

•Meaning: Market indecision, but slight bullish bias.


•Appearance: Small green body with long upper and lower shadows.
•Signal: Weak control by buyers; often seen before continuation or reversal.
6. Bearish Spinning Top

 Meaning: Market indecision, slight bearish bias.


 Appearance: Small red body with long upper and lower shadows.
 Signal: Weak control by sellers; potential reversal or continuation.
7. Bullish Marubozu

 Meaning: Strong bullish momentum with no doubt.


 Appearance: Full green body without upper or lower wicks.
 Signal: Buyers dominated the entire session; strong continuation signal.
8. Bearish Marubozu

•Meaning: Strong bearish momentum with no hesitation.


•Appearance: Full red body without upper or lower wicks.
•Signal: Sellers had full control; strong bearish continuation signal.
9. Dragonfly Doji

 Appearance: Open, high, and close are nearly the same, with a long
lower shadow.
 Meaning: Potential bullish reversal.
 Signal: Buyers regained control after significant selling.
10. Gravestone Doji

•Meaning: Potential bearish reversal.


•Appearance: Open, low, and close are nearly the same, with a long upper shadow.
•Signal: Sellers regained control after buyers pushed prices higher.

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