Candlestick Charts 3 Patterns you must know to improve trading
The popularity of the candlestick chart and patterns has increased in recent times.
The centuries-old techniques have found the faith of the people yet again for the simplicity,
accuracy and the sensitivity. One of the best techniques for the trading market,
candlestick charts and patterns is known for the incredible and immense options and potential.
Here are 3 Patterns that one must know to understand the trading better with candlestick charts.
It is generally represented by a short candle with a long wick. However,
it can be both white and black in color. The best part of the candlestick is
that you never have to worry about the color of the candle for the hammer pattern unlike others.
The wick of the hammer simply translates that the seller was in very much control in the market and the market crashed.
However, the day closed at very near to the High. This is very powerful pattern.
The recent support and rejection can be understood from the Hammer with the low candlestick.
It is otherwise represented as the insiders shake to accumulate buying.
The Harami Pattern , generally called as the Bullish Harami Pattern
is considered as one of the best in the market to understand the trading and the marketplace.
The Harami Pattern is generally understood by a long black candle that closes down to the low on the first day.
However, the small white single candle is seen on the second day.
There is a insider day as well,
in this pattern that mostly remains on the body of the first day.
Typically, it forms a shape of curve that shows that the sellers were in control at the beginning of the first day
but is losing the momentum constantly and anything can be expected in the market. The Harami Pattern is considered very valuable for the investors.
This is equally important and perhaps the most interesting one. These are small candlesticks.
It generally appears when the opening and closing of the market is near about same price. However,
the literal meaning of Doji is that market is indecisive. But, it can also indicate the reversal of the market.
These three are considered key points for the candlestick trading and patterns.