Stock Indicators

Stock Indicators

1. Japanese Candlesticks

   • Hollow Candlesticks = Close>Open Buying Pressure
   • Filled Candlesticks = Close<Open Selling Pressure
   • Long vs Short Body
     • The Longer the body the more intense the buying or selling pressure
       • Long White Body = STRONG BUYING PRESSURE
         • The longer the white candlestick is, the further the close is above the open. This indicates that prices advanced significantly from open to close and buyers were aggressive. While long white candlesticks are generally bullish, much depends on their position within the broader technical picture. After extended declines, long white candlesticks can mark a potential turning point or support level. If buying gets too aggressive after a long advance, it can lead to excessive bullishness.
       • Long Black Body = STRONG SELLING PRESSURE
         • The longer the black candlestick is, the further the close is below the open. This indicates that prices declined significantly from the open and sellers were aggressive. After a long advance, a long black candlestick can foreshadow a turning point or mark a future resistance level. After a long decline a long black candlestick can indicate panic or capitulation.
   • Maruzbozu
     • Even more potent long candlesticks are the Marubozu brothers, Black and White. Marubozu do not have upper or lower shadows and the high and low are represented by the open or close. A White Marubozu forms when the open equals the low and the close equals the high. This indicates that buyers controlled the price action from the first trade to the last trade. Black Marubozu form when the open equals the high and the close equals the low. This indicates that sellers controlled the price action from the first trade to the last trade.
   • Long Vs Short Shadows
     • Short Shadows
       • Candlesticks with short shadows indicate that most of the trading action was confined near the open and close.
     • Long Shadows
       • Candlesticks with long shadows show that prices extended well past the open and close

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