Candlestick pattern
Encyclopedia
This page provides a brief introduction to 42 patterns of Japanese Candlesticks Chart
. Candlestick pattern recognition is subjective and programs that are used for charting must rely on predefined rules.
If the opening price is above the closing price then a filled (normally red or black) candlestick is drawn.
If the closing price is above the opening price, then normally a green or a hollow candlestick (white with black border) is shown.
The filled or hollow portion of the candle is known as body or real body, and can be long, normal, or short depending on its proportion to the line above or below it.
The lines above and below, known as shadows, tails, or wicks represent the high and low price ranges within the specified time period. However, not all candlesticks have shadows.
introduction of the terms used in acquisitions, mergers and takeovers
Candlestick chart
A candlestick chart is a style of bar-chart used primarily to describe price movements of a security, derivative, or currency over time.It is a combination of a line-chart and a bar-chart, in that each bar represents the range of price movement over a given time interval. It is most often used in...
. Candlestick pattern recognition is subjective and programs that are used for charting must rely on predefined rules.
History
Some of the earliest technical trading analysis was used to track prices of rice in the 17th century. According to Steve Nison, candlestick charting came later, probably beginning after 1850. Much of the credit for candlestick charting goes to Munehisa Homma, a rice trader from Sakata.Formation of candlestick
Candlesticks are graphical representations of price movement for a given period of time. They are commonly formed by the opening, high, low, and closing prices of stock.If the opening price is above the closing price then a filled (normally red or black) candlestick is drawn.
If the closing price is above the opening price, then normally a green or a hollow candlestick (white with black border) is shown.
The filled or hollow portion of the candle is known as body or real body, and can be long, normal, or short depending on its proportion to the line above or below it.
The lines above and below, known as shadows, tails, or wicks represent the high and low price ranges within the specified time period. However, not all candlesticks have shadows.
Simple patterns
Complex patterns
See also
introduction of the terms used in acquisitions, mergers and takeovers
Terms Used In Acquisitions Mergers And Takeovers
The following are some concepts and terms used in acquisitions, mergers and takeovers of private and public companies.Acquisition: One company is taking over controlling interest in another company....
- The Island ReversalThe Island ReversalIn general terms, island reversal can be defined as a compact trading activity within a range of prices, separated from the move proceeding it; this separation is caused by an exhaustion gap and the subsequent move in the opposite direction occurs as a result of a breakaway gap.- Formation :Close...