Candlestick-Pattern
A candlestick pattern is a visual representation in technical analysis that indicates the price movement of a security over a specific period, using a single candlestick to show the opening, closing, high, and low prices
-
Hammer candlestick
The Hammer candlestick forms when the open, high, and close are nearly the same, with a long lower shadow signaling a bullish rejection by buyers aiming to drive the market higher. The hammer is a reversal candlestick pattern when it occurs at the bottom of a downtrend . Characteristics of a Hammer Candlestick: Interpretation: Example As you can see the market was trending down, the formation of the hammer (pin bar) was a significant reversal pattern.The long shadow represents the high buying pressure from this point. Sellers was trying to push the market lower, but in that level the buying power was more powerful than the selling pressure which results…
You May Also Like
What Is a Candlestick Chart?
-
Spinning Top
A spinning top candlestick is a candlestick pattern in technical analysis that signals market indecision or uncertainty. It features a small real body with relatively long upper and lower shadows Characteristics : Small Real Body: The open and close prices are very close to each other, indicating that neither buyers nor sellers were able to gain control. Long Upper and Lower Shadows: The long wicks show that there was significant price movement in both directions during the trading period, but ultimately, the price closed near its opening level. Interpretation Indecision: The spinning top suggests that there is a balance between supply and demand, with neither bulls nor bears able to…
You May Also Like
What Is a Candlestick Chart?
-
What Is a Candlestick Chart?
A candlestick chart is a tool used in financial analysis to show the highest, lowest, opening, and closing prices of a stock or other security for a specific time period. Each “candlestick” on the chart shows one time period, like a day or an hour, and visually represents how the price moved during that time. Components of a Candlestick Body: The thick part of the candlestick, which represents the range between the opening and closing prices. Wicks(Shadows): The thin lines above and below the body, indicating the highest and lowest prices during the period. Description Long Body: Indicates strong buying or selling pressure. A long green body shows strong buying…
