Japaness candlestick help!

[mjstyle]

I was wondering there is sooooo many different symbols for the japaness candlestick.. we are unable to know them all, are there certain important ones to know or we just have to take time and know them all? When you look at a chart what are the things you are looking for and how many days do we need to analysis a chart more accuratly. Thank you

[rb122756]

Mj,

Candlesticks are useful because once you learn how to read them they help you determine the pyschology of traders as it relates to a specfic stock.  They show you what traders are thinking.

Candlesticks and candlestick patterns fall into two categories - continuation and reversal.  Continuation patterns show strength and indicate that a stock will probably continue it's trend.  Reversals are warnings the the trend is probably about to change.

Individual candlesticks are variations of one of two types - the white or black marubozu (long white or black candle) which indicates strong buying or selling pressure or the doji which indicates indecision.  The marubozu family consists of true marubozus which are long white or black candles with no wicks and quasi maribozu candles which have wicks of varying lengths. These signify strength.   The doji family consists of a true doji, spinning top, dragonfly, tombstone, hammer, hanging man, etc. and usually indicate indecision and possible reversal.

I'd recommend starting with these patterns - http://www.candlestickforum.com/PPF/Parameters/16_332_/candlestick.asp - they are the most common and the ones that will make you the most money.

I'd highly recommend 'Candlestick Charting Explained' by Greg Morris.  He was a student of Steve Nisons.  He boils this down into one short book that teaches you how to start looking at the physcology and how to blend multiple candles into one candle so you don't have to memorize hundreds of patterns.  You can probably pick this up used on amazon for under 20 bucks.

RB.

[mjstyle]

oh really niceee do you what the book is called by any chance. Thank you so much for the help

[rb122756]

Mj,

Candlestick Charting Explained by Greg Morris, McGraw Hill Publishing.

http://www.amazon.com/gp/offer-listing/1557388911/ref=pd_bbs_olp_3?ie=UTF8&s=books&qid=1210304944&sr=8-3

It will be well worth your money.

Happy Trading.

Rb.

[Tommy86]

thx rb, great help here

[rb122756]

No problem Tommy.  Glad to help.

RB.

[829]

I just received my copy of Candlestick Charting Explained in.

[Tommy86]

I just received my copy of Candlestick Charting Explained in.

great, i see you are really working on your TA skills, continue that way!

[829]

I have also spoken to a financial planner, just in case I would rather have someone "in the know" to help me build wealth. Penny's are fun, but it takes a while to build real wealth with them.

[vega-68]

HEPI, is this a Bullish Engulfment?

[boomer]

HEPI, is this a Bullish Engulfment?

I would think not. on the daily. chart the reason is because it does not come at the end of a clearly defined down trend.

How ever the weakly chart shows / has a dark cloud starting at the beginning of may and now an bearish engulfment. the real question is witch way does it break out of that ascending triangle?  maybe a good use of the Elliot wave ?

[vega-68]

This is probably a really stupid question, but what is the difference between a regular candle and a filled candle?

[Greg]

This is probably a really stupid question, but what is the difference between a regular candle and a filled candle?

go here for a review of candlesticks...http://www.candlestickforum.com/PPF/Parameters/16__/candlestick.asp

[tu]

Sometimes I notice a candle with an extremely long lower wick, many times prior to an uptrend or short term rally.  I've read somewhere that stop positions are being purchased at bargain prices with the expectation that the price will continue to rise.

What exactly is taking place in these situations? 

[Vegas]

Sometimes I notice a candle with an extremely long lower wick, many times prior to an uptrend or short term rally.  I've read somewhere that stop positions are being purchased at bargain prices with the expectation that the price will continue to rise.

What exactly is taking place in these situations? 

An excellent reference is linked in the post right above yours...