Candlestick Charting - bullish and bearish reached Map

Investment structure Sumida

What is a template Sumida? What are the rules for Sumida structures and what are the consequences?

Sumida model may be bearish or bullish. There are certain rules on the use that they believe that the most comprehensive source on the candlestick charts - Steve Nison rules of supply and the effects of

Labeling requirements
Steve Nissan, the Japanese Candlestick Charting Techniques, Second Edition, New York Institute of Finance, 2001.

- The market must be clearly defined in the uptrend (bearish pattern with a spread) or low (for a hike Sumida model), although this trend is not enough

- Two candles include Sumida scheme. The second real body should sink to the real body (it should not be the shadow).

- The second figure is the real plan is to be reached the opposite color of the first real body. (The exception to this rule, when the first real body of the scheme is covered Doji. Thus, after a long fall, a Doji, wrapped in a large white real body can be changed on the merits. This tendency to increase Doji surrounded by a large black real body can be bearish reversal pattern).

Factors increasing the likelihood

Some factors that determine the likelihood that the spread pattern could be an important signal of the rotation are:

- If the first day of the spread of a small real body (eg, gyroscope), and the second day is a long real body. Light the candle first real body represents the dispersion of the previous development of strength, and the second real body shows a strong growth of the new movement.

- If the scheme is sunk after a more or move very quickly. A move or expand too fast creates a market (or perekuplennosti and pereprodannosti) and makes them vulnerable to profit.

- If there is a large group of the second real body of the spread pattern.

What does it mean to fail?

So, now we know that surrounds them, and a pattern that increases probablities success in the structure, which means that the model does not it?

- High (bear covered Plan) is opposed to any further progress (based on the close price). In other words, prices should not trade above the height bar and the nearby Sumida days. If they do, the picture is violated. In the opposite case for a hike Sumida scheme.

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