Importance of candlestick

It would sometimes give you advance warning of any change in the trend. It is known as japanese candlestick theory. There are many types of candlestick pattern, if you are interested in it. There are many useful site that can teach you.

http://www.daytradersbulletin.com/html/cs1.html

http://www.fxwords.com/j/japanese-candlesticks.html

http://www.babypips.com
This site is still under construction

Sunday, September 27, 2009

Bearish Candlestick Reversal Pattern



-This type of candlestick pattern could be found during an uptrend. But when these type of candlestick
reveal itself, be prepare of a downtrend in soon. 


1) Hanging Man (green or red doesn't matter)

It has a small body with little or no upper shadow and a long lower shadow (at least 2 times the length of real body) The longer the lower shadow, the higher potential of reversal occurring.
see the picture below to understand better.
Interpretation

A bearish pattern during a uptrend.



















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