History:
As the traditional trading is moving forward to the new online trading (taking place at different main platforms e.g forex trading) the use of indicators in this industry also being grown.
candlestick patterns indicator
There is a huge list of reliable and most beneficial indicators. These indicators made the life of trader very easy by helping them even to tell them about the right time to invest in the market place. Due to the use of these indicators trading is going to be felt very easy.
The most professionals of this industry are trying to develop new indicators to make themselves at profit. In this long run of developing the indicators , Japanese most senior traders developed the candlestick pattern indicator. This is very helpful in trading by indicating the future trend of prices. We shall explain all about it below.
Topic overview :
In this topic we shall try to discuss all the more and less important things related to the candlestick patterns indicator.
The main points we will uncover here are:
What are the candlestick pattern indicators?
What is meant by candlesticks?
How to read the candlestick patterns?
Best candlestick patterns mostly used.
Main advantages of using this indicators.
Candlestick pattern indicator:
Candlestick pattern indicator is used in technical analysis of prediction of future trend of prices. In terms of technical analysis the candlestick pattern indicator shows the variations in price by drawing a graph on candlestick chart. By analyzing this graph the professionals can easily find out the trend of market.
Now before deeply explaining the candlestick patterns further it is necessary to take overview of candlesticks and candlestick charts. Let us briefly explain the term candlestick.
What are the candlesticks?
This is a source of showing information related to the variation in prices.
The candle stick chart plays very important rule in technical analysis. This is being used by traders for explanation of price trend quickly.
There are three main parts in the candlestick. Let’s try to explain these:
Main parts are named as
- Wick • Body
- Color
- Wick: This is also named as shadows. This is here to indicate the whole day extreme values.
- Body : This feature of candlestick is here to describe the open to close range.
- Color: This is very important as it shows the variations in market price and mentions as low or high. The green color shows high price while black shows the low price.
Basic knowledge of candlestick patterns:
These patterns are handful in indicating the price variations in future. It tells about the price directions or price trend in market.
Candlestick patterns are used to predict the future direction of price movement.
It is to be known that the individual candel stick provides the patterns which then being used by the traders to see the supporting levels and resisting levels. These candlesticks provide the basic knowledge about the best time to enter in the market. These patterns also provide us the buy and sell signals..
Now it’s time to explain further about the candlestick patterns. If we talk about the chart then it is important to understand that mostly graph is seen in random but many times it gives proper patterns.
In this it is also necessary to describe the bearish and bullish patterns.
- Bullish patterns mention that the price may increase.
- Bearish patterns reveals that the price may decrease.
How to read and add the candlestick patterns:
Now in this sub heading we shall discuss the process of adding candlestick patterns indicator to the chart. This process follow as:
- Open the indicator in new tap.
- Go to the strategies menu.
- Now select the candle stick pattern tab to proceed further.
- Here will be the all indicators of particular category.
- Now select the indicator which we want to use.
Best candlestick patterns to use for trading:
Now we shall discuss the top 16 best ever candle stick patters to use.
Let’s proceed now:
We can divide these into three major catagories:
1 bearish candlestick patterns
- bullish candlestick patterns
- continuation candlestick patterns
These are further sub categorized.
Now explain all these major and sub categorized patterns:
Bullish candlestick patterns :
- Bullish patterns form after the decreasing market to down trend. It indicates the reversal of price variations.
The main patterns are given as:
Hammer candlestick pattern: These are made by short body and large lower wick. It is found in the bottom to the downward trend.
Inverse hammer candlestick patterns: The main change from upper is only that it have the upper wick very long and unlike it it’s lower wick is made small.
Bullish engulfing candlestick patterns: This is made by combination of two candlesticks.
Piercing line candlestick patterns: it is also a combination and made by red candle being followed by green candle.
And the other two common used are Three white soldiers and the Morning star candlestick patterns.
2 . Bearish candle stick pattern:
These candlesticks patterns are produced after uptrend in market and it indicates the resistance.
The main sub patterns are :
Bearish candle stick pattern:
These candlesticks patterns are produced after uptrend in market and it indicates the resistance.
The main sub patterns are :
Hanging man candle stick pattern : In shape it is same to the hammer pattern. But this always produced at last of uptrend.
Shooting star candlestick pattern: This is similar to inverted hammer but always occurs in uptrends.
Bearish engulfing candlestick pattern: Bearish engulfing candlestick occurs at last of uptrend. It has green body surrounded by the red body.
Evening star candlestick patterns: It is combination of three candlesticks Short candle stick is surrounded by green or red.
Other two candlesticks patterns are “ Three black crows candle stick pattern” and “ Dark cloud cover candlestick patterns”
- continuation candlestick patterns :
Continuation candlestick patterns :
This identify the period of market when there is no variation in the price or we can say market as undecided. When other patterns doesn’t work then it indicates the trend. Sub patterns are:
Doji candlestick patterns
Spinning top candlestick patterns
Falling three methods candle stick pattern
Rising three methods pattern
Conclusion:
Now it’s time to conclude the topic. In this topic I tried my best to expand this topic till I can explain everything related to the candle stick patterns indicator. I hope all the traders found this post good for them and made their best.
In this topic I explained the basic knowledge and simple ideas about candlestick patterns indicator. Then we explained what is actually meant of candlesticks and what are candle stick charts. I also explained the top16 candlestick patterns which are easy to use by traders. Further I explained the process of indexing it on charts.
This all knowledge about candle stick pattern indicator may help beginner as well as professionals. If you’re much interested in trading via indicators or want to explore the forex trading, no doubt a big platform, then visit our website regularly.
What of the best patterns you liked most? Tell us below in comment section.
