Tag Archives for " Candlesticks "

Mastering Candlesticks: Dark Cloud Cover

What is it?The Dark Cloud Cover pattern has a very descriptive name as it sounds like the clouds are building, and a rainstorm is coming which is exactly the way the Japanese interpreted this pattern. Japanese traders believed when you see a dark cloud cover formation; you should get ready because the rains are about […]

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Mastering Candlesticks: Bearish Harami

What is it?“Harami” means “pregnant” in Japanese, and as you can see in the following image it is an appropriate name for this candle. The candlestick pattern is characterized by a large, better than average size white candle. While the second candle is a smaller black candle, usually a spinning top, which occurs completely inside […]

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Foundations: Trend Lines

Two weeks ago, we covered building a framework for your trades using support and resistance lines. When we locate and mark lines of support and resistance on our charts, it gives us a framework upon which we can ​build. It provides a graphical representation of trader sentiment, and it defines pivot points where a stock […]

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Foundations: Support and Resistance a Framework for Trading

We first introduced you to support and resistance lines in our Stock Market Made Simple blog, which you can read here. Today, we are going to dive deeper by introducing you to technical analysis.Technical analysis is the study of a stock’s historical price points, which is displayed using graphical charts such as a candlestick chart. […]

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Foundations: Breaking Down a Stock Chart

In our Stock Market Made Simple blog series, we introduced the concept of a stock chart and covered the information they provide to traders, which you can read here. Today, we are going to delve deeper into stock charts as it is taught in the first Foundations of Stocks and Options Level 1 class.​What Is […]

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Mastering Candlesticks: Tweezer Top

What is it?By definition, a Tweezer Top is a two line candle formation which occurs at a resistance after a bullish swing. The first candle is white, the second candle is black, and the opening price of the second candle matches the closing price of the first candle. Based on that definition, any of the […]

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Stock Market Made Simple: Indicators

Welcome to the last piece of the Stock Market Made Simple blog puzzle. Granted this puzzle has been small in size but it has laid a concise foundation for anyone to take the next step forward in trading the stock market. Our puzzle pieces have covered such topics as candlesticks, opening and closing trades, and […]

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Stock Market Made Simple: Support and Resistance

We have covered candles and candlestick charts in a couple of our earlier blogs. Now it is time to build on what we have learned and introduce the concept of support and resistance when analyzing a candlestick chart. And when I say analyzing, I really mean looking at a chart and trying to figure out […]

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Mastering Candlesticks: Falling Three

​What is it?It is somewhat ironic this pattern is a five-candle pattern, even though we call it a Falling Three, but once you understand the pattern, it makes perfect sense. The first day closes with a large black candle. It is followed by three smaller candles which do not trade above or below the first […]

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Mastering Candlesticks: Bearish Engulfing

What is it?Similar to the One Black Crow, the Bearish Engulfing pattern also closes below the preceding day’s opening candle reflecting the bears have taken back more territory than the bulls gained. However, the big difference between the two is the Bearish Engulfing pattern gaps up at the market open instead of gapping down like […]

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