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Technical analysis tutorial simplified with candlestick signals

 

Technical analysis tutorial easy learning with candlestick signals

What is the best technical analysis tutorial? Learning a technical trading method that is very easy to comprehend. Candlestick signals provide visually simple reversal patterns. The most profitable technical analysis tutorial should be learning the basic premise for investing. Learning when to buy at the bottom and sell at the top. Candlestick signals simplify any technical analysis tutorial. The information built into each signal provides a format for investors to understand why a reversal is occurring.

Most technical analysis tutorial training involves learning where price reversals 'might' occur. Candlestick signals illustrate where investor sentiment is actually changing. Applying this information to other technical analysis methods greatly enhances the results. Utilizing the information provided in each candlestick signal becomes a valuable tool for better understanding what a technical analysis tutorial is trying to convey. Use the candlestick signals to pinpoint why and where a reversal is occurring in a trend. Use other commonly used technical analysis indicators to further confirm those reversals.

The candlestick signals produce an optimal analysis format. The statistical information resulting from a candlestick reversal signal, with hundreds of years of actual utilization, produces an extremely high probability result. Having an understanding of what each individual signal reveals creates a huge investment advantage. The investor that is serious about improving their trading results should take the time to learn the 12 major candlestick reversal signals and become from familiar with the rest of the signals. There are approximately 60 candlestick signals in the Japanese candlestick universe. For  complete technical analysis tutorial click here for our training videos.

This week's featured Candlestick Pattern -

Downside Tasuki Gap

Description

The Downside Tasuki Gap is found during a declining trend. A black candle forms after gapping down from the previous black candle. The next day opens higher and closes higher than the previous day's open. If the gap is not filled, the bears have maintained control. If the gap was filled, then the bearish momentum has come to an end. If the gap is not filled, it is time to go short. You will find the Tasuki pattern more often in the Upside pattern than the Downside pattern.

 

Criteria

  1. A downtrend is in progress. A gap occurs between two candles of the same color.
  2. The color of the first two candles is the same as the prevailing trend.
  3. The third day, an opposite color candlestick opens within the previous candle, and closes below the previous open.
  4. The third day close does not fill the gap between the two candles.
  5. The last two candles, opposite colors, are usually about the same size.

 

Pattern Psychology

Just the opposite as the Upward Tasuki, explaining the Tasuki gap is simple. The Japanese put significance into gaps. When one appears in the middle of the trend and is not able to fill itself on strength the next day, the momentum is still in the downtrend. The bounceup day should be construed as being a short-covering day. After the short covering disappears, the selling continues.

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