Candlestick
Examples
Courtesy of Candlestickshop.com
Daily Candlestick Charting
Weekly Candlestick Charting
3 Black Crows (Weekly) Candlestick Play
Instructions
Step 1 - Pull up a Weekly chart of the stock after the
market close for the week (Friday after close).
Step 2- Look for a THREE BLACK CROWS resting on MINOR
PRICE SUPPORT, and/or a rising Major Moving Average (10 MA, 20 MA, or 50 MA)
on the Weekly chart. Place the stock on your watch list for the upcoming
week.
Step 3 - Allow the stock to trade one full day. Pull up a
Daily chart of the stock after the stock has formed the first daily
candlestick of the week (Monday after close).
Step 4 - Look for a BULLISH HARAMI candlestick resting on
MINOR PRICE SUPPORT, and/or a rising Major Moving Average (10 MA, 20 MA, or
50 MA) on the Daily chart.
Step 5 - Enter the stock only if it breaks 1/8th above
the high of the previous HARAMI candlestick. If the stock does not break the
previous day's high, DO NOT ENTER THE TRADE.
Step 6 - Mark off the 50% retracement line. This will be
the halfway point between the line of support where the stock began it's
rally, and the line of resistance where the stock made it's last major
pull-back.
Step 7 - After entry, place an initial protective stop
1/8th below the low price of the previous day's candlestick. Sell the stock
immediately if the stock breaks below this price.
Step 8 - On each new day, adjust the trailing protective
stop to 1/8th below the previous day's candlestick's low price. Continue to
use a trailing stop as long as the stock remains below the 50% retracement
line.
Step 9 - After the stock has broken above the 50%
retracement line, look for a reversal candlestick. This will most likely be a
bearish candlestick which closes near it's low price of the day. Sell the
stock for profit either before the market close, or at the market open the
next day.
Financial Ad Trader
© Copyright 2003 Sunset Capital Management Ann Arbor, Michigan
