Most traders candlestick signal a reversal of the dominant trend. However, this group also has a number of models that can be called a continuation. All of them are signaling the occurrence of a kind of compensation or suspension of the charts in motion, before the resumption of the movement toward the dominant trend.
The Forex is the name peculiar gap between the two extremes of prices in the current and the preceding trading day. In Fig. 1 shows a window formed against the rising trend. Price gap constitute the upper shadow of the past and of the lower shadow candle. In Fig. 2 shows a similar window in a downward trend. In the interval between the lower shadow of the previous candle and upper shadow candle appears in the current trading day price fluctuations have been recorded. According to Japanese experts transaction is open in a direction that indicates the window.
This graphical model can act as support or resistance area. If the window is formed during the growth of the market - it is a signal reporting a further rise in prices. During adjustments and pauses figure may support prices. If you set the correct window was closed and the pressure exerted by the sellers in the market continues, the dominant upward trend is considered complete.
In a downtrend the figure tells us further lowering prices. Emerging adjustments will be subject to the resistance at this level. If the window is closed with continued price increases - this indicates the end of the down trend of exchange rates.
The provisions of the Japanese tehnanaliza said that during the price correction, it often comes back to the window. It follows that while the upward trend will continue, as the purchase of it would be better to use price pullbacks.
If the pressure from the selling traders do not lose their strength, long positions should be closed immediately, in some cases, even the discovery of profitable short positions. The appearance of the window against the downward trend determines the use of the opposite strategy.
trend. When lifting the market after the candle is white, which forms a price break in the trend, we can see the emergence of black candlestick.
If you just open the price of the black candlestick is within the white body and the closing price slightly below it, it also will be the point of purchase. If the window is closed (fill the gap), the pressure from the sellers continues to be felt, immediately cancel the process according to the bullish figure "tasuki break up." Reverse procedure is used to model the "gap tasuki down" Fig.