Quick Candlesticks Notes

Posted by admin | Posted in Candlesticks, Technical Analysis | Posted on 20-11-2007

Candestick patterns should be considered in conjunction with the preceding trend.  For instance, a Bullish Engulfing pattern is significant AFTER a downtrend.  A Bearish Engulfing pattern is significant AFTER and uptrend.  In other words, these are not significant following a sideways movement.


Bullish Candlestick Notes:

  • Dojis mean the stock is neutral — they’re not a confirmed signal to sell short
  • Hammers are bullish but need a confirming indicator
  • Shooting Stars are bearish especially if you see two in a row
  • Bullish Engulfing pattern (1st on left) definitely need a preceding trend to interpret — see above paragraph

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