There are two important points to trade in financial markets. The first is that you can spend an entire life, trying to explore how it works. The second - that the markets offer great opportunities to earn their money. One of the old methodology, which was used for the analysis of price movements in any market - it is the Japanese candles, and their models. Price action when it is depicted in the graph, using candles, representing the price extremes, and the main range of trade, the model shows that are repeated. These repetitive patterns candle represent excellent opportunities for trade. Many traders are aware of the candle patterns, but they are not inclined to spend time and effort required to remember all the details included in each model.
Last year I spent a lot of time studying and considering the formation of candle patterns to see whether they bring any benefit to my trading. I found that there was a huge pile of books filled with lists of different types of bars and structures associated with candles. Some are very good, while the majority do not represent anything of value to trade. Several models, which I found useful in the real trade, have been extremely valuable. I found that they are easy to recognize and interpret. Points of entry and stop orders are very clear. The only problem for the trader is to find these models. To classify a series of price bars, as a certain candle patterns, should be executed a number of criteria, which include multiple combinations of minima to maxima, discovery against the closure, bull bars bear against the bars, which are all intertwined. Any trader knows that requires an incredible amount of time to see a schedule, to check whether a maximum or above the minimum below the minimum, etc. Needless to say, to remember all the combinations of rules and apply them to find appropriate situations in the graphs. An attempt to find these models at the intra-day charts, and does seem unrealistic. I greatly reduced the list of models, including only the most reliable of them. I have included this model in its trading system to use a very simple method. If, on the basis of its preliminary analysis, I get a message to sales, I am looking for any bear candle model for a good entrance to the short position. If I get a signal to buy, then I am looking for any bychi candle model for 5-minute charts for entry into a long position. You can also use our analysis methods in combination with these candle patterns to help you implement a sound and accurate entry into the market.
So let's look at a brief description of certain candle patterns, which can be viewed in any temporal form.
Forming candle patterns
All the models are well-known features, which represent a good trading opportunity. Models of the most reliable, when they occur at or near the levels of resistance or support Fibonacci. It is best to use candle patterns as signals to the end of the counter-trend movement. This candle can be useful models for any market, especially at vysokopodvizhnyh and highly liquid markets.
Bear candle model
1. Harami Bear - This bear turning model. Prices are rising, when the last bar in the formation stops. The body of the last bar is in the body of the previous bar. The last bar is a bear turning bar. It should be read in the short side, when the price moves below the minimum of the last bar formations. Stop order placed on the maximum level of the last bar model.
Red arrow shows the level of the entrance to the short position, which is below the minimum of the last bar model.
Please note: there are different combinations that constitute the model of "Bear Harami. The body of the bar, which is located inside the bar "Harami", may bear a bar instead of bovine bar used in a graphic example.
2. Confirmed bearish Harami (Three internal bar down) - This model occurs when the bar after the last bar model "Bear Harami confirms disservice model, closing below the closing price of Bear bar 'Harami. The tactics of trade on this model is to go to the short side, when the price moves below the minimum of the last bar of the model. This pattern occurs regularly and is considered the strongest signal to bear than the simple model of "Harami".
The red line indicated the level of the entrance to a short position when the price moves below the minimum confirming bar. Also, please note confirming the bar, which is to close following the closure of the bar 'Harami.
3. Medvezhye absorption - this model is formed, when prices rose, and the last was called to the bar formation GEPom up towards bovine trend, then turns and closes below the main body of the previous bovine bar. This creates a turning bearish bar, which consumes the body of the previous bovine bar. Technique is to go to the short side, when the price moves below the minimum of the last bar, which is a bar sinks. Use the maximum absorption of the bar as a level for placing stop orders. If prices are too far from the level of stop-order, then a closer logical level.
Red arrow to specify the level of the entrance to a short position on the bar below the minimum absorption.
4. Proven Medvezhye absorption (three external bar down) - This model occurs when the bar after the last bar model Bear absorption confirms disservice model, closing below the closing price of the bar Bear absorption. The method of trading is to go to the shortest side, when the price moves below the minimum of the last bar of the model. This model is considered more reliable than Medvezhye absorption.
Red arrow shows the level of the entrance to the short position below the minimum confirming bar.
5. Bear JB - this model occurs when you have three long-running bull bars, each with a higher maximum. The last bar in the formation is unable to reach a maximum of the previous bar and the bar is a bar with a narrow range. The method of trade is to go to the short side, when the price crosses the minimum of the last bar formations. Use the maximum of the last bar as a level for placing stop orders. (Although, it is not sufficiently widespread candle model, I have met many times before you add to your arsenal).
Red arrow to specify the level of the entrance to the short position below the minimum of the last bar model, which is a bear turning bar.
6. Bear left to a child - This is turning model bovine trend. Price increases and then makes the price bar GEO upwards. This bar has made the GEO, a bar with a narrow range. The lower shadow of the bar, making the GEO does not overlap a maximum of the previous bar. Price then in the next bar down, and makes GEO closes below the opening. Technique is to go to the short side, when the price moves below the last bar formations. Maximum last bar formation is used as a level for placing stop orders.
Red arrow to specify the level of the entrance to the short position below the minimum bar, opened with GEPom down.
7. Medvezhye dark cloud - turning this model, which occurs when prices increased. First, you must be a long bull bar. He is accompanied by the bar, which opens with GEPom above the closing price of bovine bar, but then declines at the close to average a point a long bovine bar. The tactics of trade is to go to the short side, when the price moves below the minimum of the last bar formations. Use the maximum of the last bar formation as a level for placing stop orders.
Red arrow shows the level of the entrance to the short position below the minimum turning Bear bar.
8. Medvezhye recent takeover - This is turning model, which is formed when prices rise. Then a bar bovine absorption. Price bar next to the bar is the absorption of bovine bear bar, which closed below the closing bars bovine absorption. This model is the most reliable, if it occurs at the maximum of the last 14 years. The method of trading is to go to the shortest side, when prices move below the minimum of the last bar formations. Maximum last bar is used as a level for placing stop orders.
Red arrow shows the level of the entrance to the short position below the minimum turning Bear bar.
9. Footballer Bear - This model can indicate the prices. It can occur anywhere on the graph, and will signal the spread of the trend. Bear football player is a model consisting of two bars, where the first bar represents a bullish bar. The next bar was called for the same price at which bovine bar opened, but changes direction and rose as bearish bar. Technique is to go to the short side, when the price moves below the minimum of the second bar. Maximum turning bar is the placement of stop-order. This model will be most effective if both bars are not bars with a narrow range.
Red line shows the level of the entrance to the short position below the minimum Bear turning bar and the placement of stop-order. In this example, with a 5-minute schedule, you can see that, depending on your trading style, this deal would be a winning position can be closed by stop-order. For the conservative style is to wait when the price closes below the minimum, before you enter into the market. If you prefer a more aggressive entry price and then turns up, it would be prudent to withdraw from the deal when you reach the level of stop-order and then re-enter the market at the same level.
Bychi candle model
1. Bullish Harami - This is the inverted version of the model "Bear Harami. This model arises when the price falls and then the last bar stopped and can not
to overcome the closure of the previous Bear bar. Bar "Harami" closes below the opening of the previous Bear bar. Therefore, the body of the last bar is in the body of the previous Bear bar. Tech trade in this model is to go a long way, when the price crosses the maximum bar "Harami". Place a stop order should be at the level of the minimum bar 'Harami.
Green arrow shows the level of the entrance to a long position above the maximum of the bar 'Harami', and red - the level of placing stop orders below the minimum of the bar. Please note that there are different combinations that constitute a "bullish Harami. The body of the bar, which contains a bar Harami, maybe a bar instead of bovine Bear bar, used in a graphic example.
2. Confirmed bullish Harami (Three internal bar up) - This model occurs when the bar following the formation "bullish Harami" rose above the closing of the bar "Harami". This is a confirmation of bovine Harami, and is a stronger signal. Engineering trade is to go a long way, when the price crosses up past the bar formation. At least the last bar is used as a level for placing stop orders.
3. Byche absorption - This model arises when the price has committed a decrease. The last bar in the formation was called to GEPom down and then rose above the opening of the previous Bear bar, absorbing all of his body. The method of trade in this model is to go a long way, when the price moves above the maximum absorption of bovine bar. Minimum bar uptake is used as a level for placing a protective stop orders.
Green arrow to specify the level of the entrance to a long position above the maximum absorption of the bar. The red line indicates the level of placing stop orders.
4. Proven byche absorption (three external bar up) - When the price is initially formed bovine model of absorption, if the next bar closes above the closing price of the bar bovine absorption, the model confirmed
and this is a more powerful signal than a simple byche absorption. Engineering trade is to go a long way, when the price moves above the maximum of the last bar formations. At least this bar confirmation is used to determine the level placement of stop-order.
Green arrow shows the level of the entrance to a long position above the maximum bar confirmation.
5. Bullish abandoned baby - This is turning model, which is formed when, after the fall of prices, the next price bar doing GEO down. This bar has made the GEO-down, is a bar with a narrow range and does not cross the previous Bear bar. The next bar opens from GEPom up and closed above its opening. Engineering trade is to go a long way, when the price moves above the maximum of the last bar formations. At least the last bar is used as a level for placing stop orders.
Green arrow shows the level of the entrance to a long position or closing above the maximum of the bar, made up of GEO.
6. Byche recent takeover - This is turning model, which occurs when, after the price dropped to a new level, it forms a bar Bear absorption. Bar, following this bar Bear absorption turns up and rose above the closing price of the bar Bear absorption. If this happens to 14-periodnom minimum, it increases the reliability of the model. Engineering trade is to go a long way, when the price moves above the maximum of the last bar formations. At least the last bar is used as a level for placing stop orders.
Price formed a bar Bear absorption, but the next bar turned and closed above the closing bars Bear absorption. Green arrow to specify the level of the entrance to a long position above the maximum turning bar.
7. Bovine footballer - turning this model occurs when the first bar formation is the bear bar. The second bar opens at the same level as the first bar, but moves in the opposite direction, rose as turning bullish bar. The method of trade in this model is to go a long way, when the price moves above the maximum of the second bar. This model would be more effective if both bars are not bars with a narrow range.
Green line shows the level of the entrance to a long position above the maximum turning bar. The red line indicates the level of placing stop orders.
Last year I spent a lot of time studying and considering the formation of candle patterns to see whether they bring any benefit to my trading. I found that there was a huge pile of books filled with lists of different types of bars and structures associated with candles. Some are very good, while the majority do not represent anything of value to trade. Several models, which I found useful in the real trade, have been extremely valuable. I found that they are easy to recognize and interpret. Points of entry and stop orders are very clear. The only problem for the trader is to find these models. To classify a series of price bars, as a certain candle patterns, should be executed a number of criteria, which include multiple combinations of minima to maxima, discovery against the closure, bull bars bear against the bars, which are all intertwined. Any trader knows that requires an incredible amount of time to see a schedule, to check whether a maximum or above the minimum below the minimum, etc. Needless to say, to remember all the combinations of rules and apply them to find appropriate situations in the graphs. An attempt to find these models at the intra-day charts, and does seem unrealistic. I greatly reduced the list of models, including only the most reliable of them. I have included this model in its trading system to use a very simple method. If, on the basis of its preliminary analysis, I get a message to sales, I am looking for any bear candle model for a good entrance to the short position. If I get a signal to buy, then I am looking for any bychi candle model for 5-minute charts for entry into a long position. You can also use our analysis methods in combination with these candle patterns to help you implement a sound and accurate entry into the market.
So let's look at a brief description of certain candle patterns, which can be viewed in any temporal form.
Forming candle patterns
All the models are well-known features, which represent a good trading opportunity. Models of the most reliable, when they occur at or near the levels of resistance or support Fibonacci. It is best to use candle patterns as signals to the end of the counter-trend movement. This candle can be useful models for any market, especially at vysokopodvizhnyh and highly liquid markets.
Bear candle model
1. Harami Bear - This bear turning model. Prices are rising, when the last bar in the formation stops. The body of the last bar is in the body of the previous bar. The last bar is a bear turning bar. It should be read in the short side, when the price moves below the minimum of the last bar formations. Stop order placed on the maximum level of the last bar model.
Red arrow shows the level of the entrance to the short position, which is below the minimum of the last bar model.Please note: there are different combinations that constitute the model of "Bear Harami. The body of the bar, which is located inside the bar "Harami", may bear a bar instead of bovine bar used in a graphic example.
2. Confirmed bearish Harami (Three internal bar down) - This model occurs when the bar after the last bar model "Bear Harami confirms disservice model, closing below the closing price of Bear bar 'Harami. The tactics of trade on this model is to go to the short side, when the price moves below the minimum of the last bar of the model. This pattern occurs regularly and is considered the strongest signal to bear than the simple model of "Harami".
The red line indicated the level of the entrance to a short position when the price moves below the minimum confirming bar. Also, please note confirming the bar, which is to close following the closure of the bar 'Harami.3. Medvezhye absorption - this model is formed, when prices rose, and the last was called to the bar formation GEPom up towards bovine trend, then turns and closes below the main body of the previous bovine bar. This creates a turning bearish bar, which consumes the body of the previous bovine bar. Technique is to go to the short side, when the price moves below the minimum of the last bar, which is a bar sinks. Use the maximum absorption of the bar as a level for placing stop orders. If prices are too far from the level of stop-order, then a closer logical level.
Red arrow to specify the level of the entrance to a short position on the bar below the minimum absorption.4. Proven Medvezhye absorption (three external bar down) - This model occurs when the bar after the last bar model Bear absorption confirms disservice model, closing below the closing price of the bar Bear absorption. The method of trading is to go to the shortest side, when the price moves below the minimum of the last bar of the model. This model is considered more reliable than Medvezhye absorption.
Red arrow shows the level of the entrance to the short position below the minimum confirming bar.5. Bear JB - this model occurs when you have three long-running bull bars, each with a higher maximum. The last bar in the formation is unable to reach a maximum of the previous bar and the bar is a bar with a narrow range. The method of trade is to go to the short side, when the price crosses the minimum of the last bar formations. Use the maximum of the last bar as a level for placing stop orders. (Although, it is not sufficiently widespread candle model, I have met many times before you add to your arsenal).
Red arrow to specify the level of the entrance to the short position below the minimum of the last bar model, which is a bear turning bar.6. Bear left to a child - This is turning model bovine trend. Price increases and then makes the price bar GEO upwards. This bar has made the GEO, a bar with a narrow range. The lower shadow of the bar, making the GEO does not overlap a maximum of the previous bar. Price then in the next bar down, and makes GEO closes below the opening. Technique is to go to the short side, when the price moves below the last bar formations. Maximum last bar formation is used as a level for placing stop orders.
Red arrow to specify the level of the entrance to the short position below the minimum bar, opened with GEPom down.7. Medvezhye dark cloud - turning this model, which occurs when prices increased. First, you must be a long bull bar. He is accompanied by the bar, which opens with GEPom above the closing price of bovine bar, but then declines at the close to average a point a long bovine bar. The tactics of trade is to go to the short side, when the price moves below the minimum of the last bar formations. Use the maximum of the last bar formation as a level for placing stop orders.
Red arrow shows the level of the entrance to the short position below the minimum turning Bear bar.8. Medvezhye recent takeover - This is turning model, which is formed when prices rise. Then a bar bovine absorption. Price bar next to the bar is the absorption of bovine bear bar, which closed below the closing bars bovine absorption. This model is the most reliable, if it occurs at the maximum of the last 14 years. The method of trading is to go to the shortest side, when prices move below the minimum of the last bar formations. Maximum last bar is used as a level for placing stop orders.
Red arrow shows the level of the entrance to the short position below the minimum turning Bear bar.9. Footballer Bear - This model can indicate the prices. It can occur anywhere on the graph, and will signal the spread of the trend. Bear football player is a model consisting of two bars, where the first bar represents a bullish bar. The next bar was called for the same price at which bovine bar opened, but changes direction and rose as bearish bar. Technique is to go to the short side, when the price moves below the minimum of the second bar. Maximum turning bar is the placement of stop-order. This model will be most effective if both bars are not bars with a narrow range.
Red line shows the level of the entrance to the short position below the minimum Bear turning bar and the placement of stop-order. In this example, with a 5-minute schedule, you can see that, depending on your trading style, this deal would be a winning position can be closed by stop-order. For the conservative style is to wait when the price closes below the minimum, before you enter into the market. If you prefer a more aggressive entry price and then turns up, it would be prudent to withdraw from the deal when you reach the level of stop-order and then re-enter the market at the same level.Bychi candle model
1. Bullish Harami - This is the inverted version of the model "Bear Harami. This model arises when the price falls and then the last bar stopped and can not
to overcome the closure of the previous Bear bar. Bar "Harami" closes below the opening of the previous Bear bar. Therefore, the body of the last bar is in the body of the previous Bear bar. Tech trade in this model is to go a long way, when the price crosses the maximum bar "Harami". Place a stop order should be at the level of the minimum bar 'Harami.Green arrow shows the level of the entrance to a long position above the maximum of the bar 'Harami', and red - the level of placing stop orders below the minimum of the bar. Please note that there are different combinations that constitute a "bullish Harami. The body of the bar, which contains a bar Harami, maybe a bar instead of bovine Bear bar, used in a graphic example.
2. Confirmed bullish Harami (Three internal bar up) - This model occurs when the bar following the formation "bullish Harami" rose above the closing of the bar "Harami". This is a confirmation of bovine Harami, and is a stronger signal. Engineering trade is to go a long way, when the price crosses up past the bar formation. At least the last bar is used as a level for placing stop orders.
3. Byche absorption - This model arises when the price has committed a decrease. The last bar in the formation was called to GEPom down and then rose above the opening of the previous Bear bar, absorbing all of his body. The method of trade in this model is to go a long way, when the price moves above the maximum absorption of bovine bar. Minimum bar uptake is used as a level for placing a protective stop orders.
Green arrow to specify the level of the entrance to a long position above the maximum absorption of the bar. The red line indicates the level of placing stop orders.4. Proven byche absorption (three external bar up) - When the price is initially formed bovine model of absorption, if the next bar closes above the closing price of the bar bovine absorption, the model confirmed
and this is a more powerful signal than a simple byche absorption. Engineering trade is to go a long way, when the price moves above the maximum of the last bar formations. At least this bar confirmation is used to determine the level placement of stop-order.
Green arrow shows the level of the entrance to a long position above the maximum bar confirmation.5. Bullish abandoned baby - This is turning model, which is formed when, after the fall of prices, the next price bar doing GEO down. This bar has made the GEO-down, is a bar with a narrow range and does not cross the previous Bear bar. The next bar opens from GEPom up and closed above its opening. Engineering trade is to go a long way, when the price moves above the maximum of the last bar formations. At least the last bar is used as a level for placing stop orders.
Green arrow shows the level of the entrance to a long position or closing above the maximum of the bar, made up of GEO.6. Byche recent takeover - This is turning model, which occurs when, after the price dropped to a new level, it forms a bar Bear absorption. Bar, following this bar Bear absorption turns up and rose above the closing price of the bar Bear absorption. If this happens to 14-periodnom minimum, it increases the reliability of the model. Engineering trade is to go a long way, when the price moves above the maximum of the last bar formations. At least the last bar is used as a level for placing stop orders.
Price formed a bar Bear absorption, but the next bar turned and closed above the closing bars Bear absorption. Green arrow to specify the level of the entrance to a long position above the maximum turning bar.7. Bovine footballer - turning this model occurs when the first bar formation is the bear bar. The second bar opens at the same level as the first bar, but moves in the opposite direction, rose as turning bullish bar. The method of trade in this model is to go a long way, when the price moves above the maximum of the second bar. This model would be more effective if both bars are not bars with a narrow range.
Green line shows the level of the entrance to a long position above the maximum turning bar. The red line indicates the level of placing stop orders.Forex Magazine
based on www.ensignsoftware.com
based on www.ensignsoftware.com
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