Candlesticks (taken from www.traderslog.com)

• zeeshan and if it abandoned baby is above the previous day candle, this is bearish

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  9/23/09 9:19 am

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• zeeshan if the abandoned baby is below the previous day candle, that is bullish

Candlesticks are best used for 5 min, hourly, daily etc. Nothing too short term...too much noise.

EXCELLENT SITE FOR CANDLESTICKS:

http://www.traderslog.com/Japanese-Candlesticks.htm


HAMMER

The hammer is known as a reversal candlestick. Hammer candlesticks occur when a security moves significantly lower after the open, but rebounds to close well above the intraday low. In a perfect hammer, this tail is twice the length of the body and the candlestick will have no upper shadow or wick. The smaller the body and the longer the tail, the more significant the hammer is as a bullish indicator. Hammers form at trend bottoms. If this candlestick forms during an advance, it is called a Hanging Man.

INVERTED HAMMER

The Inverted Hammer is a bullish reversal Japanese Candlestick pattern. In a downtrend, the security opens lower, then trades higher, but closes near where it opened. The candlestick has a long upper shadow/wick and a small real body at the lower end of the session.

HANGING MAN

On a Japanese Candlestick chart, the Hanging Man candlestick occurs when a security moves significantly lower after the open, but rebounds to close well above the intraday low. The Hammer and Hanging Man are short body candles with little or no upper shadow or wick, and a lower shadow at lease twice the height of the candle body. They are reversal candlesticks: hammers form during a decline at trend bottoms, the bearish Hanging Man forms during an advance.

ENGULFING PATTERNS

A reversal pattern on a Japanese Candlestick chart that can be bearish or bullish depending upon whether it is in an uptrend or downtrend. An Engulfing Pattern is a two candlestick pattern, where the first day is characterized by a small body, followed by a day whose body completely engulfs the previous day's real body. The second day's real body (candle) should be the opposite color of the first real body. The bearish engulfing pattern signals the end of an uptrend and the bullish engulfing pattern suggests a downtrend reversal.