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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Long and short lines
[frame width="770"] [embed]https://youtu.be/3jKZuMM9hlk[/embed] [/frame] When we are searching for candlestick patterns on the chart, very often, we need to decide if a particular candle is long or short to consider patterns correctly as valid ones or not. It seems to be easy, but, in fact, what one person considers as a long candle another one…
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Basic Candles
See our Patterns Dictionary for other patterns. Check our CandleScanner software and start trading candlestick patterns! [frame width="370"] [embed]http://youtu.be/vr9p-f4mvPg[/embed] [/frame] Given the requirement for information on four prices, OHLC, in order to construct a candle, the resulting candle shapes can take on a variety of forms. The body may be very long or very short,…
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