Brought to you by: CandleStickShop.com Step 1 – Pull up a Weekly chart of the stock. Step 2 – Look for a BEARISH HARAMI against MINOR PRICE RESISTANCE, and/or a declining Major Moving Average (10 MA, 20 MA, or 50 MA) on the Weekly chart. Step 3 – Pull up a Daily chart of the
In the 1700’s a Japanese man named Munehisa Homma, a trader in the Osaka rice futures market, developed a method of technical analysis to analyze the price of rice contracts known as candlestick charting. Homma used Sakata’s Five Methods, patterns derived from rules used by local traders from his hometown of Sakata, as the foundation for
Brought to you by: CandleStickShop.com Step 1 – Pull up a Weekly chart of the stock after the market closes for the week (Friday after close). Step 2 – Look for THREE WHITE SOLDIERS against MINOR PRICE RESISTANCE, and/or against the declining Major Moving Average (10 MA, 20 MA, or 50 MA) on the Weekly
An unusual reversal pattern on a Japanese Candlestick chart defined by a gap followed by a Doji, followed by another gap in the opposite direction. The shadows on the Doji have to completely gap above or below the shadows of the first and third day. See Bullish Abandoned Baby
On a Japanese Candlestick chart, a two day reversal pattern that has a small body day completely contained within vertical range of the previous larger candle’s body. This formation suggest that the previous trend is coming to an end. The smaller the second candlestick, the stronger the reversal signal. See: Bullish Harami