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Dragonfly Doji Candlestick Pattern Is Highly Profitable!

on Sunday, May 23, 2010

Author: Ahmad Hassam

A Doji Candlestick Pattern is very easy to spot but it forms rarely when the opening and the closing prices of a security or a currency pair are the same. So there is no stick on the Doji Candlestick Pattern. It is all wicks with no candle body. In essence, a Doji Pattern looks like a cross. There are a few variation to this important pattern. Read this article to know more how profitable this pattern can be.For a Doji to be created, a trading day must begin and end with the same price. A whole lot of trading takes place during the day but when it is all said and done, the security price is right back where it had started in the morning.When a Doji is formed with the opening and the closing prices equal or the same, it is a signal that the battle between the bulls and the bears had beena draw during the trading day. Soon, either the bulls or the bears are going to previal. In other words, a trend reversal is about to take place.A Dragonfly Doji pattern is unique in the sense that the opening, closing and the high prices are all the same or equal. A Dragonfly Doji is formed when the stocks opens, trades down during first part of the day. During some part of the day, the price starts to climb again and eventually closing on the high which is the same as the open.When a Dragonfly Doji is formed, bears initially decide to rule the market. But at some point the bulls step in and decide to buy again. When the bulls step in, they start pushing the price up. As the bulls dominate the trading day, the security price ends up right where it had started.The low of the Dragonfly Doji can be considered a near term support level because it is clear that the buyers stepped in at that level and turned the trend from down to up. Dragonfly Doji is a bullish candlestick pattern.A bearish Gravestone Doji Pattern is formed when the open and close of the day is equal to the low of the day. This is the most bearish of the Doji patterns. A bearish Gravestone Doji pattern signals the start of a prolonged downtrend in the security price.A Doji pattern is very easy to spot on the candlestick chart as there is no body just the wick. Open close and either low or high all three are equal and the candle looks more like a cross. When you spot the Doji, get ready for a trend change in the price action.

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About the AuthorMr. Ahmad Hassam has done Masters from Harvard. Read this 49 page Quantum Swing Trading FREE Report plus the shocking Profit Button FREE Report that applies no matter what you trade-stocks, forex, futures or options! Learn this powerful Fibonacci Retracement method FREE that pulls 500+ pips per trade!

Ascending Triangle Chart Pattern on CTRS

on Tuesday, May 4, 2010

Once you have identified the ascending triangle, you have to wait for a breakout. Volume will generally decrease as the pattern is being carved out. It is important to wait until the candlestick closes outside of the pattern on a spike in volume.

Ascending triangle patterns are not 100% accurate, so it is important to place a stop loss.

*For downward breakouts, target = 460; stop loss = 710

*For upward, target= 750; stop loss = 690

Bullish Morning Star Pattern - TMPI

on Monday, April 26, 2010

TMPI - Bullish Morning Star Pattern
As you can see from the TMPI chart beside, the red body in a falling market suggesting that the bears are in command.
Then a small real body appears implying the incapacity of sellers to drive the market
lower. The strong green body of third day proves that bulls have taken over. An ideal
Bullish Morning Star Pattern preferably has a gap before and after the middle
candlestick. The second gap is rare, but lack of it does not take away from the power of
this formation.

INCO - Cup and Handle Pattern

on Sunday, April 25, 2010

INCO-Cup and Handle Pattern
I accidentally discovered another Cup and Handle pattern at INCO.

A few days ago, INCO has passed the handle and is currently trying to break through the neckline (resistance) in 5,100.

If tomorrow (26/04) or a few days ahead successfully penetrate or pass through the neckline, the next target is 8,930.

Cup and Handle Pattern in ELSA

Cup and Handle pattern is a long term pattern which sometimes can take 2-4 month to form.

Cup and Handle chart pattern occurs during the trend reversal. First, the price is trying to recover — making a rounding bottom. Later the price finds resistance at the previous resistance level. This makes it turn and slope down a bit before it gains enough strength to test that resistance level again. This forms a handle of the cup.

It is rather a visualization trick to draw that cup and a handle, because when the pattern and in particular the neckline of the cup (resistance level) can be clearly seen traders can prepare to enter the market on the break of the neckline. After such break the price tends to rocket up quite quickly.

Once the price breaks above the neckline — traders open Long positions usually after the first price bar had successfully closed above the neckline.

I found Cup and handle pattern in ELSA, to be quite a reliable chart pattern to trade.

AUTO After form Bearish Harami Cross Pattern

on Wednesday, April 21, 2010

AUTO after Bearish Harami Cross
Yesterday (19/04) IDX Stock Analysis detect AUTO forming  Bearish Harami Cross  Pattern. And on this day (20/04) had broken through resistance at 9.000.

Congratulations to those that already buy today.

ASRI - Bullish Morning Doji Star Pattern

on Tuesday, April 20, 2010

ASRI-Bullish Morning Doji Star
Bullish Morning Doji Stars has a strong reliability which indicate a possible upward trend. Morning Doji Star formations are characterized by a continuation of a bearish trend followed by a Doji, reflecting uncertainty in the strength of trend.

An upward breakout occurs when price closes above the top of the candle

Resistance = 194
Support = 177

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