Cryptocurrency Trading Lecture 4: Candlestick Patterns

You are welcome to my 4th lecture on Cryptocurrency Trading.

In the previous lectures, I have discussed what financial market is and the different type of markets. I also explained what instruments and tickers are. In the previous lectures, I have also talked about the 3 types of analysis a trader can choose to work with to analyse any market which are technical analysis, fundamental analysis and Sentimental analysis.

I have discussed technical analysis and showed us different ways of representing price on a chart in a market. I have also started discussing about candlesticks and I will continue from where I stopped

The links to the previous lectures are at the end of the post, so all that missed the previous lectures can read up the lectures.

Today, we are going to discuss candlestick patterns.

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There are lots of candlestick patterns but we are going to be talking about few of them that are important and mostly use in trading.

• The engulfing bar candlestick pattern.
  If the candle 2 body engulfs all of the range of candle 1, the next move will be in the direction of candle 2.
  
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• The Doji Candlestick Pattern.
  It indicates indecision in the market. It means no one (buyers or sellers) is in control.
  When buyers are in control, we have a bullish Doji which is called Dragonfly Doji and when sellers are in control, we have a bearish Doji which is also called Gravestone Doji.
  
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• The Hammer (Pin bar)
  This is a bullish candlestick pattern. It signal reversal when it occurs at the bottom of the downtrend.
  
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• The Shooting Star (bearish pin bar)
  It is a bearish candlestick pattern. It signal reversal when it occurs at the top of the uptrend.
  
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• The Harami Pattern (the inside bar)
  Harami means pregnant. The price follows the color of candle 2 which is the child. In bullish Harami candle 2 is green and in bearish Harami, candle 2 is red.
  
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• The Tweezers tops and Bottoms.
  Tweezer means equal. Tweezer top means equal top and it is a bearish Candlestick pattern. Tweezer bottom means equal bottom and it is a bullish candlestick pattern.
  
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• The Morning Star.
  It is a bullish candlestick
  
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• The Evening Star
  It is a bearish candlestick
  
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TO BE CONTINUED...

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Read up my previous posts on Cryptocurrency Trading

• Cryptocurrency Trading Lecture 1: Introduction
• Cryptocurrency Trading Lecture 2: Technical Analysis
• Cryptocurrency Trading Lecture 3: Candlesticks

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Thanks for Dropping By !

Best regards

fatherfaith