Day Trading - Technical Analysis of Candlesticks
Color of candlestick green, indicates 3 things indicates 3 things about the market, who's in control and market closing.
Bullish market buyers are in control closed higher than it opened
Support is the price level at which supply (selling power) is strong enough to prevent the price from rising further. T/F
False
Which doji indicates that the buyers were once up high in the candlestick but the open and close values are still equal to on another?
gravestone doji
Do you recognize the pattern?
hammer
Which doji is a strong signal that the price will reverse its direction?
hammer
identify candle
hammer
Small to no upper wick(shadow) with a small body, best describes ____________
hanging man
_________ looks just like a Hammer, except it happens in a strong uptrend and often signal the end of the trend.
hanging man
Which candlestick pattern is opposite of the engulfing pattern?
harami
Do you recognize the pattern?
inverted hammer
label #5 of candlestick
low
define uptrend
market making higher highs and higher lows.
define downtrend
market making lower highs and lower lows
High
market reached it's highest price during the trading session
Low
market reached it's lowest price during the trading session
Study the bullish engulfing criteria
no answer
study the bearish engulfing criteria
no answer
label #7 of candlestick
open
Area on a chart that price has risen to but struggled to break above
resistance
when price is below the line it is referred to as ___________.
resistance
If a candle CLOSES LOWER than it opened, it means the __________ won
sellers
Do you recognize the pattern?
shooting star
Identify candle
shooting star
Area on a chart that price has dropped to but struggled to break below
support
when price is above the line it is referred to as __________.
support
The red candlestick opens at the ________ and closes at the _______________
top, bottom
A green candlestick opens at the bottom? T/F
true
Long upper wick (shadows) are bearish indicators. T/F
true
Resistance is the price level at which supply (selling power) is strong enough to prevent the price from rising further. T/F
true
Support is the price level at which demand (buying power) is strong enough to prevent the price from declining further. T/F
true
The longer the wick, the greater the price rejection. T/F
true
The wick (shadow) indicates the high or low for the day? T/F
true
long lower shadows are bullish indicators. T/F
true
green candles indicate that the market is moving in which direction?
up
Market moves in 3 directions
up, down, sideways
shooting star candle
· Indicates momentarily that sellers are in control. · Buyers have come in and pushed prices way up high and sellers have come in and reversed all the gains by the buyer Indicates momentarily that sellers are in control.
The terms: High and Low are associated with the wick of the candle? T/F
True
Identify this pattern
bearish engulfing
Color of Candlestick Red, indicates 3 things about the market, who's in control and market closing.
bearish market sellers are in control closed lower than it opened
Label #3 of candlestick
body
The green candlestick opens ________ and closes at the _______________
bottom, top
Identify this pattern
bullish engulfing
If a candle CLOSES HIGHER than it opened, it means that the ______ won
buyers
HAMMER CANDLE
-A hammer candle occurs at the bottom of a long down trend and looks like a hammer. -It has a long lower wick (like a doji), that forms the handle. -The small body on the top is the hammer that swings down. -That's because the candle wick shows that even though the price dropped it surged back up quickly!
INVERTED HAMMER CANDLE
-An inverted hammer is an upside hammer that occurs at the top of a bullish run. -Buyers were really strong, but sellers were able to overcome and bring the closing price down to the lower range. Buyers still managed to win the battlhe battle.e.
Identify the candle that opens and closes at the same values
doji
identify candle
doji
red candles indicate that the market is moving in which direction?
down
Which doji indicates the sellers were winning the battle near the low end, but the buyers had to overcome the sellers to make the candlestick close at its opening value?
dragonfly doji
A red candlestick closes at the top? T/F
false
Resistance is the price level at which demand (buying power) is strong enough to prevent the price from declining further. T/F
false
When prices near this level, sellers become more aggressive and sell in larger quantities, preventing price from advancing above this level. This is known as "support". T/F
false
