MODELS SHOULD BE BASIC PART 4

Part 4 is also the last part in the series on basic candlesticks. In this section, Blackmantrader will introduce you to the Doji candlestick, which represents market hesitation. Let’s find out how this type of candlestick generates market signals

BASIC CANDLESTICK PATTERN: DOJI CANDLESTICK

BASIC CANDLESTICK PATTERN: DOJI CANDLESTICK

Describe:

Without a candlestick, the closing price is equal to the opening price

Price action:

Expresses hesitation in the market of both buyers and sellers.

Advice:

If it appears after a series of candlesticks, the buying pressure may decrease, if it appears after a series of bearish candlesticks, the pressing pressure may decrease

BASIC CANDLESTICK PATTERN: QUAD DOJI CANDLESTICK

Describe:

There are no candlesticks and shadows, just a horizontal line, the highest price, lowest price, false opening and closing price are all equal

Price action:

Often occurs at periods of illiquidity

Advice:

Do not trade with a quad Doji candlestick because there is no information about the market, neither buyers nor sellers have made any upward moves or the market liquidity is very poor.

BASIC CANDLESTICK PATTERN: LONG-LEGGED DOJI CANDLESTICK

Basic candlestick pattern should Doji

Describe:

There is no candlestick body or extremely small body, no matter the color, the shadow is very long on 2 sides

Price action:

Appears when the price range during the day is very large but the candlestick closes very close to the opening price

Advice:

Note the location of the candlestick’s appearance. This pattern will be especially important when appearing at the top of the market

BASIC CANDLESTICK PATTERN: UMBRELLA CANDLESTICK

Basic candlestick pattern should be umbrella

Describe:

Also called dragonfly candlesticks (Dragonfly), there is no upper body and shadow. The lower shadow is very long.

Price action:

It showed that sellers prevailed and the price was pushed very deep downwards but the buyers flipped the truss and closed the candlestick very well from the lowest price.

Advice:

Depending on where it appears, it may indicate a bullish reversal in a downtrend or at a support level or may signal a bearish reversal in an uptrend or at a resistance level

BASIC CANDLESTICK PATTERN: INVERTED PARACHUTE CANDLESTICK

The basic candlestick pattern should be an inverted umbrella

Describe:

Also called a tombstone candle (Gravestone), without the body and the lower shadow, the shadow is very long.

Price action:

Showing that the buyers were dominant, the price was pushed upwards but the sellers flipped the truss and closed the candlestick very far from the highest price.

Advice:

Depending on where it appears, it may signal a bullish reversal in a downtrend or at a support level or may signal a bearish reversal in an uptrend or at a resistance level

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