Bullish Engulfing Pattern

This is another pattern among Japanese candlesticks and is a major reversal pattern comprised of two opposite colored bodies. It is formed after a downtrend which means that it opens lower than the previous day’s close and closes higher than the previous day’s open. The first candlestick represents a falling share price (red [...]

continue reading.....

How to Trade the ‘Doji’ and ‘Doji Variations’

Doji
The Doji is one of the most informative signals in Candlestick trading and is comprised of one candle. It forms when the open and close occur at the same level (or very close) in a specific timeframe. In order for a doji signal to be valid it must [...]

continue reading.....

Japanese Candlesticks are gaining popularity among individual traders, due mainly to the reason that they are easier to learn and interpret versus bar charts. Of equal importance is the fact that they fall into the category of leading indicators. Unlike lagging indicators (for example; a moving average) which appear after the fact, the Japanese Candlesticks [...]

continue reading.....