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11 Winning Candlestick Patterns Part 1 C PDF

This document discusses 11 candlestick patterns that are considered winning patterns for traders. It begins by explaining what a candlestick chart is and the components that make up individual candlestick lines. It then proceeds to define and provide a brief description of 5 important candlestick patterns: 1) Doji, 2) Engulfing patterns, 3) Doji star, 4) Evening doji star, and 5) Gravestone doji. The document serves to introduce some basic candlestick patterns that technical traders use to identify reversal and continuation patterns in financial markets.

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341 views

11 Winning Candlestick Patterns Part 1 C PDF

This document discusses 11 candlestick patterns that are considered winning patterns for traders. It begins by explaining what a candlestick chart is and the components that make up individual candlestick lines. It then proceeds to define and provide a brief description of 5 important candlestick patterns: 1) Doji, 2) Engulfing patterns, 3) Doji star, 4) Evening doji star, and 5) Gravestone doji. The document serves to introduce some basic candlestick patterns that technical traders use to identify reversal and continuation patterns in financial markets.

Uploaded by

Anonymous sDnT9yu
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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11 Winning
Candlestick Patterns

Upper
Shadow

} Real
Body
Lower
Shadow

Candlestick Line

Candlestick lines and charts -- tra-


ditional Japanese charts whose
individual lines look like candles,
hence their name. The candle-
stick line is comprised of a real
body and shadows. See "Real
body" and "shadow."

1 http://www.traderstruthrevealed.com
Graphics & text from: Japanese Candlestick Charting Techniques by Steve Nison
11 Winning
Candlestick Patterns

Grave-
Long Stone
Legged

1. Doji

Doji --a session in which the open and close


are the same (or almost the same). There
are different varieties of doji lines (such as a
gravestone or long-legged doji) depending
on where the opening and closing are in
relation to the entire range. Doji lines are
among the most important individual candle-
stick lines. They are also components of
important candlestick patterns.
2 http://www.traderstruthrevealed.com
Graphics & text from: Japanese Candlestick Charting Techniques by Steve Nison
11 Winning
Candlestick Patterns

Bullish Bearish

2. Engulfing Patterns
Engulfing patterns -- there is a bullish and
bearish engulfing pattern. A bullish engulfing
pattern is comprised of a large whie real body
which engulfs a small black real body in a down-
trend. The bullish engulfing pattern is an impor-
tant bottom reversal. A bearish engulfing pattern
(a major top reversal pattern), occurs when sell-
ing pressure overwhelms buying pressure as
refleccted by a long black real body engulfing a
small
3
white real body in an uptrend.
http://www.traderstruthrevealed.com
Graphics & text from: Japanese Candlestick Charting Techniques by Steve Nison
11 Winning
Candlestick Patterns

3.Doji Star
Doji star -- a doji line which gaps from
a long white or black candlestick. An
important reversal pattern with confir-
mation during the next session.

4 http://www.traderstruthrevealed.com
Graphics & text from: Japanese Candlestick Charting Techniques by Steve Nison
11 Winning
Candlestick Patterns

4.Evening Doji Star


Evening doji star -- the same as an
evening star except the middle candle-
stick (i.e., the star portion) is a doji
instead of a small real body. Because
there is a doji in this patter, it is consid-
ered more bearish than the regular
evening star.

5 http://www.traderstruthrevealed.com
Graphics & text from: Japanese Candlestick Charting Techniques by Steve Nison

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