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Candlestick Essentials &
Beyond
Vivek Rattan
CeTA, MBA
"What is important in market
fluctuations are not the events
themselves, but the human
reactions to these events." -
Bernard Baruch
Never place a trade with a candle
signal until you have considered
the 'Risk / Reward' of the potential
trade.
Candlestick Construction
Candlestick Terminology
Candlesticks & Market Psychology
Candlesticks & Market Psychology . . . contd.
Candlesticks & Market Psychology . . . contd.
Definitions
Long Days : Open & Close price considerably different.
Definitions ...contd.
Short Days
Definitions ...contd.
Marubozu (Black) : Its a long black body with no
shadows on either end.
Definitions ...contd.
Marubozu (White) : Its a long white body with no
shadows on either end.
Definitions ...contd.
Spinning Tops : have small real bodies with upper and
lower shadows that are of greater length than the body's
length.
Definitions ...contd.
High Wave Candles : have small real bodies with long
upper and lower shadows.
Definitions ...contd.
Doji : A doji occurs when the open & close prices are
same, or very close to being the same.
Single Reversal Patterns
Single Reversal Pattern : Hammer
Single Reversal Pattern : Hammer
Getting Inside the
pattern
Single Reversal Pattern : Hammer
Single Reversal Pattern : Hammer ...contd.
Single Reversal Pattern : Hammer ...contd.
Single Reversal Pattern : Hammer ...contd.
Single Reversal Pattern : Hammer . . . contd.
Single Reversal Pattern : Hammer . . . contd.
Black & White bodied Hammers : any real difference in the message?
Single Reversal Patterns
Single Reversal Pattern : Shooting Star
Single Reversal Pattern : Shooting Star ..contd.
Single Reversal Pattern : Shooting Star ..contd.
Single Reversal Pattern : Shooting Star ..contd.
Single Reversal Pattern : Shooting Star ..contd.
Single Reversal Patterns
Single Reversal Pattern : Inverted Hammer ..contd.
Single Reversal Pattern : Inverted Hammer
..contd.
Single Reversal Patterns
Single Reversal Pattern : Hanging Man ..contd.
Single Reversal Pattern : Hanging Man ..contd.
Getting Inside the
Pattern
Single Reversal Pattern : Hanging Man ..contd.
Single Reversal Patterns
Single Reversal Pattern : Gravestone Doji ..contd.
Single Reversal Pattern : Gravestone Doji ..contd.
Single Reversal Patterns
Single Reversal Pattern : Dragonfly Doji ..contd.
Single Reversal Patterns
Single Reversal Pattern : Rickshaw Man Doji ..contd.
Single Reversal Pattern : Rickshaw Man Doji ..contd.
Multiple Reversal Patterns
Multiple Reversal Pattern : Bearish Engulfing ..contd.
Multiple Reversal Pattern : Bearish Engulfing ..contd.
Multiple Reversal Pattern : Bearish Engulfing ..contd.
Multiple Reversal Pattern : Bearish Engulfing ..contd.
Engulfing patterns vs. Outside
days
Multiple Reversal Patterns
Multiple Reversal Pattern : Bullish Engulfing
Multiple Reversal Pattern : Bullish Engulfing ..contd.
Multiple Reversal Pattern : Bullish Engulfing ..contd.
Multiple Reversal Patterns
Multiple Reversal Pattern : Dark Cloud Cover
Multiple Reversal Pattern : Dark Cloud Cover ..contd.
Multiple Reversal Pattern : Dark Cloud Cover ..contd.
Multiple Reversal Pattern : Dark Cloud Cover ..contd.
To gap or not to
gap
Multiple Reversal Patterns
Multiple Reversal Pattern : Piercing Pattern
Multiple Reversal Pattern : Piercing Pattern ..contd.
Multiple Reversal Patterns
Multiple Reversal Pattern : Bullish Harami
Multiple Reversal Pattern : Bullish Harami ..contd.
Multiple Reversal Patterns
Multiple Reversal Pattern : Bearish Harami
Multiple Reversal Pattern : Bearish Harami ..contd.
Multiple Reversal Patterns
Multiple Reversal Pattern : Bearish Star
Multiple Reversal Patterns
Multiple Reversal Pattern : Bullish Star
Multiple Reversal Patterns
Multiple Reversal Pattern : Evening Star
Multiple Reversal Patterns
Multiple Reversal Pattern : Morning Star
Continuation Patterns
Rising & Falling Three Method
Rising & Falling Windows
Continuation Pattern : Rising Three Method
Continuation Pattern : Falling Three Method
Continuation Pattern : Rising Window
Continuation Pattern : Rising Window
Continuation Pattern : Falling Window
Practical Application
Practical Application ...contd.
Practical Application ...contd.
Practical Application ...contd.
Practical Application ...contd.
Practical Application ...contd.
Practical Application ...contd.
Practical Application ...contd.
Practical Application ...contd.
Practical Application ...contd.
That's it!
Questions?
Suggestions!

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