Candle Stick Formation

Candlesticks are usually composed of the body , and an upper and a lower shadow (wick): the area between the open and the close is called the real body, price excursions above and below the real body are called shadows. The wick illustrates the highest and lowest traded prices of a security during the time interval represented.
The body illustrates the opening and closing trades. If the security closed higher than it opened, the body is white or unfilled, with the opening price at the bottom of the body and the closing price at the top. If the security closed lower than it opened, the body is black, with the opening price at the top and the closing price at the bottom. A candlestick need not have either a body or a wick.

In here i give some examples to read candlestick that maybe you can learn in making your position transaction.

The Bullish Candlestick Formations
These are all bullish pattern. Some of them indicate strong bullish pattern. Few simple guide, if the following formations are found then it is likely that there is a bullish trend is imminent.

Hammer : you surely can guess why it is called a hammer. Hammer came after a strong downtrend. If there is a trend strengthened after sharp it is called the hanging man. Shaped like a bullish pattern with the lowest price that in and do not have the highest price.

Long Bearish Candle : bearish candle occurs when prices open near the highest price and closed near the lowest price.

Pricing Line : First Candle is a long bear candle followed by a too long bull candle. Bull Bear candle candle appears below but not until half of the bear candle.

Bullish Engulfing Lines : This is a strong bullish pattern and occur after a significant downtrend (and usually the trend reverse.) Occurs when a small bearish followed by a large bullish.

Hanging Man : Occurred after a significant uptrend. Consisting of two candles with the lowest price that far down without the highest price. This pattern is the opposite of the bullish candlestick formation Hammer.

Dark Cloud Cover : is a bearish pattern. It would be more powerful if the second candle appears in the bottom of the first candle bullish.

Shooting Star : is the trend behind the minor. Star must have the highest price, which is long enough to be able to say shooting star.

Doji Star : As in bullish doji star, doji star such as this indicates a bearish trend with a period of uncertainty. Necessary reinforcements such as evening star for sure.

Bullish Doji Star : Star like this show that are behind the trend is still uncertain. If there is no other supporting indicators that confirm the trend will last, it is advisable to wait and see first.

Morning Star : This pattern indicates the price has reached its bottom (support) potential. The emergence of star (candle in the middle) indicates will occur when followed behind the bullish trend on the next candle. Star can be a bull or bear candle candle.

Evening Star : Showing that prices have reached a resistance point. Star (candle in the middle) shows the possibility of turning the form of a bearish trend. Star can be a bear or bull candle candle.



Neutral Candlestick Formations
Neutral Candlestick Formations do not show an uptrend or downtrend. For these circumstances are advised to wait and see.

 Doji : As Doji on bullish or bearish formation. Positions such as these indicate uncertainty and the trend is going to happen periode.

Double Doji : Now for a model double doji like this likely will happen is the "breakout" to the uncertainty of what happened. However, the breakout model that will happen remains uncertain from these formations only. There must be other support.

Spinning Tops : It was symmetrical and the distance between the open and close is not too big. There is no certainty what will happen afterwards.


 

Harami : Models such as these indicate the reduced momentum of the trend that will soon be followed by the end of the trend. Consisting of the candle with a smaller size in the middle of a larger candle before. In the example in addition to marking the end of a bullish trend as bullish bearish candle followed by smaller ones.


Reversal Candlestick Formations
This formation is specific for the trend back / reversal.

Long-legged Doji : Frequently indicated turning point. Occurs when open and closing price is equal to the highest and lowest price is relatively large.

Dragonfly Doji : also a turning point. It's just here indicate that the lowest price was far greater than the highest price.

 

Gravestone Doji : Open and close and the lowest price is the same. While the highest price is much higher.

Stars : Now this is a reverse star. His position on top of the candle before the same kind. As in other formations, this condition indicates a trend reversal may occur.