candlestick pattern cheat sheet pdf download

The textbook definition of a patterns states certain criteria, but one should state that there could be minor variations to the pattern depending on certain market conditions.

One should ensure that whenever they are buying it is a green candle day and whenever they are selling, ensure that it’s a red candle day.

Strength is represented by a bullish or green candle and weakness by a bearish or red candle.

The upper shadow shows the high price and lower shadow shows the low prices reached during the trading session.īefore we jump into learning about different candlestick charts, there are few assumptions which need to be kept in mind that are specific to the candlestick charts. The thin vertical lines above and below the real body is knowns as the wicks or shadows which represents the high and low prices of the trading session. It shows that the prices opened, the bulls pushed the prices up and closed higher than the opening price. If the real body is empty, white or green then it means that the close was higher than the open known as the bullish candle. It shows that the prices opened, the bears pushed the prices down and closed lower than the opening price. When the real body is filled, black or red then it means that the close is lower than the open and is known as the bearish candle.

This real body shows the price range between the open and close of that day’s trading. The candlestick’s wide or rectangle part is called the “real body” which shows the link between opening and closing prices. In the 1700s, a Japanese man known as Homma discovered that as there was a link between price and the supply and demand of rice, the markets also were strongly influenced by the emotions of traders.Ī daily candlestick chart shows the security’s open, high, low, and close prices for the day. Bottomline: How to Read Candlestick Charts?Ĭandlestick charts originated in Japan over 100 years before the West had developed bar charts and point-and-figure charts.You can also watch the video on candlesticks charts from here.Trading made easy with Candlesticks in Tamil – Identifying trading opportunities using candlesticks analysis. Short Online Webinars on Candlestick Patterns:.Short Online Courses on Candlestick Patterns:.Filter Stocks with Specific Candlestick Chart Patterns using StockEdge:.

Candlestick pattern cheat sheet pdf download