The candles are figures that contain information about the price movement of the pairs over a period of time. Each candle contains:
Each candle represents 24 hours on a daily chart,
Each candle represents a picture 60 minutes 1 hour
Each candle is 240 minutes in a table of 4 hours,
and so on …
A green or black candle means that during the evaluation period, the market gained value (appreciated).
A red or white candle means that during the evaluation period, the market lost value (depreciated).
The main objective of the patterns of candles is able to identify any retractions from the market or some other price patterns before they happen. Or at least as close as possible to the time of the event.
This is what I mean by price action. You may prefer to use other indicators, but I’m going to recommend ALWAYS confirm their signals of these indicators, with the price action.
What patterns Candela Q
Here the most common:
Pattern Envelope Envelope on the Rise or Ascending
It usually comes after strong downward trends. Very possible to reverse the high
Standard to Lower Envelope or Envelope Descending
It usually comes after strong upward trends. Very possible to reverse the decline.
Basic Reverse Pattern on the Rise
It means that sellers are losing strength and could occur a reversal to the upside at any time.
Standard Basic Reverse Downward
This means that buyers are losing steam and a reversal could happen down at any time.
This means that buyers can not support new high and that there may be a reverse downward at any time.
Star at Dawn
This is a stop sign reversal to the downside. It happens after the market has reached new levels.
This is a sign of ground to reverse the rise. It happens after the market has reached new lows.
Hammer / Hanging Man
This is a reversal pattern that usually appears after very strong tendencies. The pattern is considered Hammer after a downtrend, and a Hanging Man after an uptrend.
It may occur with long body candle still green and the second red, or vice versa. This example shows a pattern reverse to the downside.
Doji / Doji Double
This is not a pattern reverse itself, but it does mean that there is indecision in the market. A Double Doji, further confirms even more hesitation. Be alert whenever there is this pattern, as there may be a trend or a break very strong in the price of par.