Candlestick Charting For Dummies®

Chapter 6

Single-Stick Patterns That Depend on Market Context

In This Chapter

Identifying market environments

Digging into doji details

Understanding spinning tops

Encountering belt hold basics

Taking a look at hanging men and hammers

In Chapter 5, I cover a few of the more basic and easily defined single-stick candlestick patterns, which are either bullish or bearish indicators regardless of their location on a chart. For those patterns, the price action that occurs during the previous few days just isn’t that significant.

But not all single-stick patterns are that straightforward. Some extremely useful single-stick patterns rely heavily on their location on a chart. Making yourself familiar with these patterns and how to identify and trade based on them is another way that you can add a versatile weapon to your trading arsenal. That’s what this chapter is all about. Also, context is essential to the single-stick patterns that are covered in this chapter. This isn’t always the ...