Recently I read Beyond Candlesticks By Steve Nison. The reason I find this information published by this author significant is because the book is required material by market technician association ( the organization that provides the certifications to become a charted market technician). With this certification you are allowed to have the series 86 exam exempt. Which means you are now certified to be a research analyst .
In the book I read some interesting points. However I am only going to discuss the large candle sticks that the author mentioned. He mentioned for instance on a large bull candle stick ( on the chart the bull candle is green) that support is found in two areas. The first area of support is at the bottom of the bull candlestick. While the 2nd area of support is found 50% of the large bull candle.
As for bear candlesticks ( red candles on the chart are the bear candles), when a large bear candlestick is formed
the top becomes resistance. While the 2nd area of resistance is found 50% of the candle stick.
The chart above illustrates a case study of this. For the large candlesticks I only used candlesticks that were $15 from the high to low.
I highly recommend reading this book. It has alot of other interesting points on Japanese candlesticks.
In the book I read some interesting points. However I am only going to discuss the large candle sticks that the author mentioned. He mentioned for instance on a large bull candle stick ( on the chart the bull candle is green) that support is found in two areas. The first area of support is at the bottom of the bull candlestick. While the 2nd area of support is found 50% of the large bull candle.
As for bear candlesticks ( red candles on the chart are the bear candles), when a large bear candlestick is formed
the top becomes resistance. While the 2nd area of resistance is found 50% of the candle stick.
The chart above illustrates a case study of this. For the large candlesticks I only used candlesticks that were $15 from the high to low.
I highly recommend reading this book. It has alot of other interesting points on Japanese candlesticks.