Candelsticks practics

1. Using Candlesticks with Indicators and Patterns 2009/7/13 1 www.forextradingmethod.info

2. 2009/7/13 www.forextradingmethod.info 2 An Umbrella candle at the top becomes a Hanging Man Interpretation : The sighting of a hanging man signals a possible market top but bearish confirmation is required before selling. Candle 3 must close lower than candles 2 and 1 to generate a sell signal.

3. 2009/7/13 www.forextradingmethod.info 3 Short candles as continuation patterns Interpretation: It is a bullish candle as the close is greater than the open and the close is at the high. It is likely to be a continuation pattern as the bulls are still in control. This candle’s bullishness will only be threatened if there is a close below its low on the next day .

4. 2009/7/13 www.forextradingmethod.info 4 Long white candle breaks resistance - Buy signal

5. 2009/7/13 www.forextradingmethod.info 5 White candles at a low price area - Buy on breakout of resistance

6. 2009/7/13 www.forextradingmethod.info 6 Long white candles at high price area warns of an overbought market

7. 2009/7/13 www.forextradingmethod.info 7 Long white candle’s low acts as support. Sell below support

8. 2009/7/13 www.forextradingmethod.info 8 The Black Upper Shadow Candle is considered a weak candle, as the close is less than the open. Though there is an attempt by the bulls to control price at some point during the day the weak close at the end of the day implies weakness. This candle is more bearish than the Black Lower Shadow Candle because it closed at the low. It can appear in a consolidation pattern or as part of a trend continuation pattern. Short black candles as continuation patterns

9. 2009/7/13 www.forextradingmethod.info 9 Predominance of white candles over blacks have bullish implications

10. 2009/7/13 www.forextradingmethod.info 10 Long black candle breaks support - Sell signal

11. 2009/7/13 www.forextradingmethod.info 11 Long black candle at low price area acts as support

12. 2009/7/13 www.forextradingmethod.info Long black candle at high price area acts as resistance

13. If you have any comment or experience on this method, please leave your message in our comment column in www.forextradingmethod.info 2009/7/13 13 www.forextradingmethod.info