Presentation on theme: "Introduction to Advanced Candlestick Patterns"— Presentation transcript:
1 Introduction 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
25 Cradle 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.
32 Jay 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
33 Jay 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
34 Jay Hook PatternHow to differentiate between profit taking and a full-scale reversal.
57 Belt 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
86 Trading 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.
87 High Powered Scanning Techniques with Candlesticks Market trendStrongest sectorsStrongest signals in those sectorsAdditional indicators confirmingBest Target potentialsEasy stop loss points