Presentation on theme: "Introduction to Advanced Candlestick Patterns"— Presentation transcript:
1Introduction to Advanced Candlestick Patterns Thank your Host – Mona and The FOREX Traders Association for inviting you to speak.Introduce Pat Johnson, Business & Marketing Director and Debi McDonough, Editorial DepartmentExplain this is Advanced by request but the beauty of candlesticks is the quick and easy visual …Introduction to Advanced Candlestick Patterns
2Advanced Candlestick Patterns Fry Pan BottomCradle PatternJay-HookScoop PatternBelt HoldBreakout Patterns
3Fry Pan BottomThe downtrend starts waning with the appearance of small trading bodiesAs the trend starts slowly curling up, a gap up in price indicates that strong buying sentiment has now returned
4Long Rounded Curved bottom Fry Pan BottomLong Rounded Curved bottom
5Fry Pan Bottom – minutes, days, months The indecisive rounding bottom is the predominant factor
6Fry Pan Bottom - Past Analysis Big Percent move at top has a differentmeaning when a pattern can be identified
7Fry Pan Bottom measuring point A dimple usually marksthe Halfway point
8Fry Pan Bottom - A Break Out or Failure? Easy identification of a failure, whichmakes for easy stop loss procedures
9Fry Pan Bottom can become a Cup and Handle Or a J-hook pattern
10Fry Pan Bottom – Exuberant buying Want to see break out buying
25Cradle PatternThe Cradle Pattern is a symmetric bottom pattern that is easy to identify.A downtrend becomes obvious with a large black candle at the bottom.A series of small or indecisive trading days trade in a flat area.A bullish candle, more powerful with a Bullish Engulfing signal, is formed of approximately the same magnitude as a Bearish candle at the end of the downtrend.This signifies that the Bulls have come out of the indecisive trading area with decisive force.
32Jay Hook Pattern The first move of the uptrend is very strong. A candlestick sell signal indicates a pullback about to occur.After a few days, small indecisive candles start to appearDoji, small Hammers, Bullish Engulfing signals
33Jay Hook Pattern The first test becomes the recent high Indecision as found in candlestick sell signals at the recent high becomes a quick indicator to get out of the positionA Bullish candle breaching the recent high illustrates that investor sentiment is taking prices up
34Jay Hook PatternHow to differentiate between profit taking and a full-scale reversal.
57Belt Hold Pattern Strong prevailing trend The candlestick body should be the opposite color of the prevailing trendGap on the open, continuing the trendThe open is the high or low of that trendThe length of the body should be a long body.You can read my full article on ‘The Belt Hold Signal’ in Feb 2006 issue of Stocks & Commodities Magazine.The Bullish Belt Hold is a long white candle that has gapped down in a downtrend. From it’s opening point, it moved higher for the rest of the day.The bearish Belt Hold is just the opposite. It is formed with a severe gap away from the existing uptrend. It opens at it’s high and immediately backs off for the rest of the day
86Trading GapsGaps represent enthusiasm to get into a position to the point that investors will pay prices away from any of the previous day's trading range.Great for identifying panic selling at the bottom and exuberant buying at the top.
87High Powered Scanning Techniques with Candlesticks Market trendStrongest sectorsStrongest signals in those sectorsAdditional indicators confirmingBest Target potentialsEasy stop loss points