Earlier Post I did highlight about some basic about Price actions, if you want to recall, you may want to go back refresh it again, or click the link : http://myacbookscafe.blogspot.com/2010/12/forex-price-actions.html
Here I would like to share some of the common Bar type that may help during trading.
Bullish Reversal Bar:
Characteristic:
A long seller bar, follow by a small buyer bar. Then, 3rd buyer car is more than 50% of the 1st seller bar.
- The 3 bar pattern usually formed after a decline and is a reversal pattern.
Bearish Reversal Bar:
Characteristic:
A large buyer bar follow by a small buyer bar, then 3rd seller bar that 50% more than 1st Bar.
- The bars usually formed after a price rally, and is a reversal.Doji:
Characteristic:
The open & close are the same price. It's mean there is indecision in the trading direction.
Doji Bullish Reversal:
Characteristic:
A Seller bar, followed by a Doji. Then, 3rd bar is buyer that close to the first seller bar.
- it formed a decline & a reversal happen.
The above are just few more of the bar pattern analysis.You can read the George Morris book below for more about charting.
1 comment:
It will be easier to present in Candle form.... OHLC is very good for analyzing longer term view. Candles are too fat to be accommodated into chart.
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