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5 Fibonacci Tricks
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HOMEBULLISH PATTERNSBEARISH PATTERNSCANDLESTICKS

Bearish Patterns

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Bearish Downside Gap 3 Methods

 

Bearish Downside Tasuki Gap

 

Bearish Side-By-Side White Lines

 

Bearish Abandoned Baby

 

Bearish Advance Block

 

Bearish Deliberation

 

Bearish Evening Doji Star

 

Bearish Evening Star

 

Bearish Identical 3 Crows

 

Bearish 3 Black Crows

 

Bearish 3 Inside Down

 

Bearish 3 Outside Down

 

Bearish Tri-Star

 

Bearish 2 Crows

 

Bearish Upside Gap 2 Crows

 

Bearish In-Neck

 

Bearish On-Neck

 

Bearish Separating Lines

 

Bearish Thrusting

 

Bearish Dark Cloud Cover

 

Bearish Doji Star

 

Bearish Engulfing

 

Bearish Harami

 

Bearish Harami Cross

 

Bearish Kicking

 

Bearish Meeting Lines

 

Bearish Shooting Star

 

Bearish Belt Hold

 

Bearish Hanging Man

 

Bearish Tweezer Top

 

     

You may be asking yourself, "If I can already use bar charts to view prices, then why do I need another type of chart?"

The answer to this question may not seem obvious, but after going through the following candlestick chart explanations and examples, you will surely see value in the different perspective candlesticks bring to the table. In my opinion, they are much more visually appealing, and convey the price information in a quicker, easier manner.

What is the History of Candlestick Charts?

Candlestick charts are on record as being the oldest type of charts used for price prediction. They date back to the 1700's, when they were used for predicting rice prices. In fact, during this era in Japan, Munehisa Homma become a legendary rice trader and gained a huge fortune using candlestick analysis. He is said to have executed over 100 consecutive winning trades!

The candlesticks themselves and the formations they shape were give colorful names by the Japanese traders. Due in part to the military environment of the Japanese feudal system during this era, candlestick formations developed names such as "counter attack lines" and the "advancing three soldiers". Just as skill, strategy, and psychology are important in battle, so too are they important elements when in the midst of trading battle.

What do Candlesticks Look Like?

Candlestick charts are much more visually appealing than a standard two-dimensional bar chart. As in a standard bar chart, there are four elements necessary to construct a candlestick chart, the OPEN, HIGH, LOW and CLOSING price for a given time period. Below are examples of candlesticks and a definition for each candlestick component: