On the other hand, I have many experience to a very short term buy at a big bearish body candle but beware if holding longer because the price may continue the bearish trend rather reverse to a bullish trend. At this point is more logical to take profit. In the DOW Theory, while the balanced bullish candle is like the participation phase, the big body candle near the resistance level have more probability of an excessive phase where people FOMO (fear of missing out) which are the last people to enter the market. I do not recommend a hasty buy when there is a big bullish body candle especially near the resistance level. However, when the body is very big, it indicates a great difference between the open and close position either a strong buy or a strong sell.
![steve nison evening morning star youtube steve nison evening morning star youtube](https://libertex.com/sites/default/files/inline-images/japanese-candlestick-12_1.jpg)
Steve nison evening morning star youtube series#
There are even many articles for starting traders that we buy after there are series of bullish candle suggesting us to ride the wave and the same that we should sell after there are series of bearish candle. Simplest Pattern Candle Body LengthĪ balanced bullish candle size is more to a bullish signal and vice versa for a balanced bearish candle is more to a bearish signal. Thus, a bearish candle means that the price went downward in that certain period. On the other hand, a bearish finished candle opens with a higher price and closes with a lower price. Thus, a bullish candle means that the price went upward in that certain period. It is a summary of a price movement that starts/opens with a lower price and ends/closes with a higher price. Today, candle stick chart is useful to efficiently see market behaviors and predict future movements.Ī bullish finished candle is usually colored green or hollow. It really looks like a candle where the wick is the high, the wax is the open/close, and the handle is the low. The candle stick chart was introduced by Steve Nison in his book, Japanese Candlestick Charting Techniques developed by Munehisa Homma, a rice merchant from Sakata, Japan who traded in the Ojima Rice market in Osaka during the Tokugawa Shogunate.