1.    How to look at the shape of the candle

 

 

 

 

 

 

 

◆Candle Basics                                                     

 

The following descriptions are based on daily wages.

 

 

 

If the closing price (the price after the end of the transaction) and the opening price (the price at the start of the transaction) is higher than the opening price, a red bar is drawn and this is called a 'positive bar'. Conversely, when the closing price is lower than the opening price, a blue bar is drawn and this is called a ‘negative bar.＊

 

 

 

The candle (stick) is marked with a body and a tail as shown above, and the tip of the upper tail means the highest price during the market and the tip of the lower tail means the lowest price during the market.＊

 

 

(1) If you look at the red positive bar on the left of the image above, it is interpreted that today's stock price starts at the opening price, hits a low, rises again, hits a high price, and then ends with the closing price, which is a slightly lower price.

 

 

 

(2) If you look at the blue negative bar, it is interpreted that it starts at the open price, hits a high price, then falls again to a low price and ends at the close price, which is a cautiously rising price.

 

 

 

 

(3) The last, right-most cross-shaped candle shows the high and low after the start of trading, and the last determined closing price is the same as the opening price.

 

 

 

 

 

 

◆ Long Positive Bar                                                         

 

It is a pattern in which the market price starts at a low price and then rises and closes at a high price on the same day.

 

 

 

 

- When such a long positive bar occurs at a low point, it is interpreted as a signal to signal an uptrend reversal.

 

 

 

◆ Long Negative Bar                                                         

 

Conversely, it is a pattern in which the opening price starts at the highest price and continues to decline during the day, ending at the closing price.

 

 

 

 

- This is a typical downtrend, and the long black bar accompanied by a large amount at this time can be interpreted as a strong downtrend.

 

 

 

 

 

 

 

◆ Hammer-shaped                                                 

 

hammer-shaped candle

 

 

 

 

- If it occurs during a downtrend, it is highly likely to turn into an uptrend

 

◆ Reverse hammer-shaped                                            

Reverse hammer-shaped candle

 

 

 

- If it occurs during a downtrend, it is a transition signal to an uptrend.

 

 

- Occurs in the high zone, implying a short-term correction.

 

 

 

 

 

 

◆ Hanging (Hanging Man)                                                 

 

Negative bar with lower tail

 

 

 

- If it occurs in an uptrend, it is implied that a reversal is possible in a downtrend

 

 

- If it occurs at the low point, it is an upturn signal.

 

 

◆ Planetary                                                             

Negative with upper tail

 

 

 

- If it occurs during an uptrend, it will turn into a downtrend

 

- Occurs in an uptrend that has risen a lot, suggesting a correction to the high

 

- If it occurs in a downtrend, it implies further downtrend.

 

 

- A candle shape that appears frequently in the early stages of accumulating bottom forces

 

 

 

 

 

 

◆ Zeolite (Trend reversal signal)                                        

The opening and closing prices are the same, and the upper tail is shaped like a cantle.

 

 

 

- If zeolite candles continuously appear in the bottom, it is interpreted as accumulating power without leaving the trough.

 

 

- If a zeolite candle occurs in the high point, it is a signal that a top-down is imminent. Warning of a downtrend

 

◆ Dragonfly                                                           

Candle shape with zeolite turned upside down

 

 

 

- If it occurs in the high zone, it is a downtrend signal

 

 

- Emerging from a low is a strong bullish signal going forward.

 

 

 

 

◆ Cross (trend reversal signal)                                       

Cross candle shape

 

 

 

- Forward trend call signal with power balanced buys and sells

 

- If it occurs during an uptrend, there is a possibility that it will return to a downtrend.

 

 

- If it occurs during a downtrend, there is a possibility that it will return to an uptrend.

 

 

 

 

 

 

 

◆ Gap                                                                   

Rising Gap: When the current price is higher than the previous day's high＊

 

Down Gap: When today's market price is lower than yesterday's low＊

 

 

 

- When a gap appears, it is interpreted as a temporary good or bad news, and it is heavily concentrated on one side of buying or selling.

 

- The uptrend gap is interpreted as a very strong buying trend.

 

- The bearish gap is interpreted as a very strong sell-off

 

 

The gap shape does not exist in the 24-hour Bitcoin chart.※

 

 

 

 

cf. Candle-shaped pattern application [Link]