What are the basic patterns of candlestick charts

Candlesticks with larger black and long lower shadows and shorter real lines are called spindles. The tone of the real line, in other words whether the candlestick is a big black or a big positive line, is not too critical. The spindle line expresses that the energy between the customer and the merchant is evenly matched, the buyer and the seller do not have the upper hand in the sales market, and neither side manipulates the sales market.

The shorter real line (whether it is a big Yinxian or a big Yangxian) indicates that the closing price is very close to the opening price; the longer shadow lines on both sides indicate that both buyers and sellers are trying to occupy the active and manipulated sales market, but neither side has been able to take the lead. During this trading period, although the price fluctuated greatly, the final closing price was restored to around the opening price, and the buyers and sellers were in a close stalemate at the end of the market.

If a spindle line is generated in a growing trend, it generally means that the customer energy is poor, and the price trend will reverse from up to down.

If a spindle line is generated in a downward trend, it generally means that the merchants have poor energy, and the price trend will reverse from falling to rising.

Solid line (Marubozu)

If the candlestick has no upper and lower shadows, it can only be part of the thicker real line in the middle, which is called the real line. In the positive real line (milk white), the highest transaction price is the same as the closing price, and the lowest price is the same as the opening price; in the negative real line (black), the highest transaction price is the same as the opening price, and the lowest price is the same as the closing price.

A solid milky white line has a long solid milky white line, but no upper and lower shadows. Its opening price is equivalent to the lowest price, and the closing price is equivalent to the highest transaction price. It is a rising candle because it signals that customers (double heads) are manipulating the selling market during that time period. It is generally a data signal that the big bull market continues or the stock market bear market flips.

A solid black line has a longer solid black line, but no upper and lower shadows. Its opening price is equivalent to the highest transaction price, and the closing price is equivalent to the lowest price. This is a rising candle at this time, as it signals that the merchants (what is bearish) are manipulating the selling market during that time period. It is generally a data signal of a continuous bear market in the stock market or a reversal of a major bull market.

Crosshair (Doji)

Doji candlesticks have the same opening and closing prices, and their real lines are so short that they can be regarded as no real lines. In fact, the real lines have been short enough to become a horizontal line.

The crosshairs express the equivalence between the customer and the merchant after constant gaming. The price fluctuates closely around the opening price during this time period, but the closing price is equivalent to the opening price or very close to the opening price. Neither the customer nor the merchant could gain control over the core manipulation sales market, and the game ended in a draw.

According to the different lengths of the upper and lower shadows, the crosshairs can be divided into four types, namely: long-legged crosshairs, frog crosshairs, tomb crosshairs and one-word crosshairs.

Long-legged Doji: A bullish shape that indicates a trend reversal.

Frog Doji: A bullish shape that indicates a trend reversal.

Grave Card Doji: A bullish shape, indicating that the development trend will reverse.

One word line: a bullish shape, indicating that the development trend will reverse.

A doji can refer to either a single doji or a combination of a doji and other candlesticks. When a crosshair appears in the analysis pattern, we need to observe its previous candle for comprehensive consideration.

If the doji appears after a series of long near-positive solid lines (a long solid milky white line), then the doji indicates a weakening and waning of buyer energy. If the price is to rise again, there must be a large number of customers entering the market, but there is not enough customer energy support point. A large number of merchants continue to enter the market and press the price to make the price stagnant.

It must be remembered that the occurrence of a cross of this kind does not mean that we can immediately bearish without thinking, and one must consider it comprehensively and then make further determinations. A bullish candle must appear, and the open price of the candle must be directly below the open price of the Yang candle in front of the doji.

If the doji appears after a series of similar negative real lines (the long black real lines), then the doji indicates a weakening and fading of seller energy. If the price wants to fall again, there must be a large number of customers entering the market, but there is not enough business energy support point. A large number of customers keep coming in and pushing sky-high prices, making the price stagnant.

It must be remembered that the occurrence of a reticle of this kind does not mean that we can open immediately without thinking, and one must consider it comprehensively and then make further determinations. Wait for a rising candle that closes above the opening price of the black candle before the doji.