🔥How to quickly remember candlestick patterns thanks to understanding the essence 🔥
The Japanese candlestick pattern comes from the father of rice trader Munehisa Homma. And his special tip at the beginning was "After 3 days of selling, collect the goods". He calculated the fibonacci at the 68% mark, which means that in 4 sessions, 3 sessions were ~75%, the possibility of a reversal is very high and reputable with Day frame because you always try 1h 4h, how can you make sure the volume doesn't change suddenly and destroy the structure!
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Back to topic: Ideas for Munehisa Homma to start?
+ I'm not sure how MH saves and remembers data, maybe he can't backtest deeper than elliott but certainly the flexibility and sense of market reversal cannot be changed. Because a businessman can remember and keep very few books to facilitate the fastest trading. For example, you sell rice but have never had software and only have a rough piece of paper and a pen? Then you will focus on handling debt - how to have debt! But that number is almost overloaded, so the Heikin Ashi candlestick chart is what he uses to quickly solve that overload problem.
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On what basis are candlestick patterns formed?
+ Surely you all think about the structure of a candle body. Yes, but the starting point for every candlestick pattern is the RELATIONSHIP between sessions from the opening price, closing price and candlestick wicks. Because the article is limited, I will not analyze a few cases. But the easiest is the "Morning star doji" model, I will analyze both buying and selling lines, not which side prevails.
🏄 The selling line is drying up and there is a heavy sideway signal (doji). Currently, it is still recommended to continue selling due to the larger number of previous selling supporters. Although a green candlestick appeared after that, holding the price by more than 50%, the candlestick dropped sharply in the first session and made the sellers confused, but it did not push past the opening price of the first session, so it is still not possible to buy right away, but buy when it is just. Touch the part that opens session 1. Or you can use the "order stop" command.
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Maybe you guys will have many perspectives and like to counter like me ^^ but you still have to consider 3 things: price, time, vol and the correlation between them!😼
