Transactions on breaks price highs and lows can also bring a good profit. If the graph can see a group of candles with small bodies it shows only one thing - the situation on the stock exchange is uncertain. If during one of these days the price discovery creates a gap in the rising trend - it is a signal to buy. The dominant trend is likely to continue. The main feature of this model are the price fluctuations near the last peak, followed by a price breakthrough to the upward trend.
Playing the price minimum is exactly the opposite. Box, a downward, opens the strip of stagnation. The price level is low. Band stabilizes spike rate, which occurred during the last or penultimate session.
An inexperienced broker may have the impression that the candles form a kind of base, but the Bulls last hopes evaporated after breaking a window in the direction of the dominant trend.
Model of the three methods can be either bullish or bearish nature. In both cases, its appearance is the signal for the continuation of the trend. The figure consists of several elements.
One of them - a large white candle. For this it is usually followed by a group of candles with falling bodies are small. The ideal figure contains three candles, in some cases, the number may be higher, sometimes - just two. This should be respected main condition - all the elements of the model should be the price range of the main white candle. In most cases, all the little candles have a black body.
On the last trading day, you must have a large white candle with the closing price must necessarily exceed the same period of the previous period. The opening price of a candle as to exceed the closing price of the previous period.
Japanese traders linked model three methods with unique respite during the hot market battles. The emergence of small candles indicates stopping the market, in order to get some rest and take a breath.
Forming bearish downtrend against the following way. There is a long black candlestick chart, just behind it there are three small white candles - is rising figures. All of them are in the range of the first main element - a large black candle, including its shadow.
Prerequisite - opening price must be lower than the closing price of the previous period. Closing price should also be lower relative to the same index of the previous trading period.