Japanese Candlesticks Guide! Day 5 Lewis Glasgow's SIX,000 FOREX Course

in trading •  last year

Day 5 is about CANDLESTICKS!

Japanese Candlesticks are awesome because they show how the market feels about a price. Because of this, you can look at Candles to tell how a price will move. Invest accordingly and you have the possibility of making money! Here's how to do this!

Let's define the parts of a candle!


source

The candle on the left shows that price started low with the open, and closed higher, representing a rise in price, or a bullish candle. Buy this to make money!

The candle on the left shows the opposite, a bearish candle. Sell this one!

Judging by the size of the wick it is possible to tell more about the movement...

A large wick means indecision or a change in the market. Think about it, a price that makes a large wick has to bounce way up and then comes down because people are trying to find out what the price should be. The opposite - little/no wick is a more stable price - is also true.

Here are some charts

The leftmost show that a trend will continue in the same direction (if its going up it will continue to rise), while the rightmost show that the trend will change direction.

Each of these has their own name

UP, RESTEEM, U5dt42G4xW1EyBKDCHWEBSZLxMxDnZk.gif @corganmusic

Now The Fun Part!

Investopedia.com has the 5 best Candlestick patterns to look for.
I'll be showing them off below

1 Three Strike Line


If you find a pattern that looks like this and has closed, there is an 84% chance that it will follow the candle that engulfed the other 3 candles direction.

2 Two Black Gapping

This is a pattern where the trend is stopped by a candle that is longer than the previous, breaking the halfway point of it (as the first black candle breaks the halfway of the white one), then proceeds to make a large gap, and another reconfirming pattern. This follows the new trend 68% of the time.

3 Three Black Crows


This trend has the most strength when the open on the red (or black) candle is higher than the open on the green candle. There are three new candles that each go lower than one another. If you can find this, you will be right 72% of the time

4 Evening Star


The Evening/Morning Star along with the Abandoned Baby is the exact definition of the indecisiveness that comes with the long wicks we talked about before there is usually a gap. 72% accuracy.

5 Abandoned Baby


The Abandoned Baby has a gap between the other bodied candles and the Doji. This pattern checks out 70% of the time.

I hope this is something you can use to trade with! There are TONS of other patterns to look up, and lots more research to be done on the ones that I showed you today. Please feel free to read more about this topic, and if I can help, or messed anything up, let me know!

Day 5 of 14

If you're curious about the course here it is sixfigurecapital.com
Link to Day 1
Link to Day 2
Link to Day 3
Link to Day 4
Link to Day 5
Link to Day 6
Link to Day 7
Link to Day 8
Link to Day 9
Link to Day 10

UP, RESTEEM, U5dt42G4xW1EyBKDCHWEBSZLxMxDnZk.gif @corganmusic

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