Candlestick formations

Candlestick formations

In the big wide world of candlestick analysis, all known variants on the three basic formations Long White Body, Black Body and Doji Long back.

Whether totally unfamiliar with investment concepts or very sophisticated in investment experience, the Japanese Candlestick trading formations are easily, At the Long White Body is a white (unfilled) with a short candle wick and a short fuse. This strongly indicates a bullish formation period of sharply rising prices, a close opening period of the lows and a final close of the period's high.


As a counterpart to this, it is equipped with long black body is a black (filled) candle, also with a short wick and a short fuse. A large gap between high and deep is this strong bearish formation with opening and closing near the high or low period associated. Eight simple rules for trading japanese candlestick patterns in the forex market, especially tweezer tops and morning star formations.

The third candlestick base formation is called Doji Lines and stands for a possible trend reversal and growing uncertainty in the market place. Opening period and are very close connection in combination with some sharp swings up and / or down.