Monthly Archives: January 2015

The problem with doji candles (Part 1)

Doji is one of the most important basic candles acting as a building block of many patterns – both single and multiple lines. According to the classic definition, a doji candle is the candle where the closing price is equal to the opening price. Let's look at some of the definitions employed by other authors.…
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Black Candle

See our Patterns Dictionary for other patterns. Check our CandleScanner software and start trading candlestick patterns! [caption id="attachment_4585" align="alignright" width="126"] Figure 1. Black Candle (basic candle).[/caption] Forecast: reversal or continuation of a trend Trend prior to the pattern: n/a Opposite candlestick: White Candle Construction: black body upper and lower shadows required none of the shadows…
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Blending candlesticks

In this short article we would like to introduce the notion of blending candlesticks, which will subsequently be followed-up by further detailed articles. We can ‘blend’ different adjacent candlesticks to form a single candlestick, thus summarising the outcome over several periods in one candle. We can blend candles of similar frequency over any time scales…
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Candlestick charts: CandleScanner color theme

[frame align="right" width="770"] [embed]http://youtu.be/UW7gkcpsjT0[/embed] [/frame] Almost all of the western literature devoted to candlesticks has simplified the analysis by limiting the candle colors to dark (black) and light (white) body. According to Seiki Shimizu, the colors of candles were originally much more complex, which he demonstrated in the example of a doji candle, in which…
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