Academy · patterns and situations

The Playbook

29 short pages. Each takes one candlestick pattern or one situation, shows it, and says what it is, what it is taken to mean and what to check. None of them says what to do.

Candlestick patterns

Seventeen shapes, and what each is taken to mean.

A pattern describes what a price did. None of them is a forecast, and each page says what to check before giving it any weight.

DojiA doji is a candle whose open and close are at, or very nearly at, the same price.
HammerA hammer is a candle with a small body near its top and a lower wick at least twice as long as the body, appearing after a decline.
Shooting starA shooting star is the hammer turned over: a small body near the bottom of the candle and an upper wick at least twice as long as the body, appearing after a rise.
Bullish engulfingTwo candles after a decline.
Bearish engulfingTwo candles after a rise.
Morning starThree candles after a decline.
Evening starThe morning star turned over.
Inside barAn inside bar is a candle whose high is lower than the previous candle’s high and whose low is higher than the previous candle’s low.
HaramiTwo candles.
Three white soldiersThree long rising candles in a row after a decline or a pause.
Three black crowsThe three white soldiers turned over: three long falling candles in a row after a rise.
Spinning topA spinning top has a small body in the middle of the candle and wicks of roughly equal length above and below.
Piercing lineTwo candles after a decline.
Dark cloud coverTwo candles after a rise.
Tweezer tops and bottomsTwo candles next to each other whose lows are at the same price, after a fall, make a tweezer bottom.
MarubozuA marubozu is a candle that is all body.
Outside barAn outside bar is a candle whose high is higher than the previous candle’s high and whose low is lower than the previous candle’s low.

When this happens

Twelve situations every trader meets.

What is going on, why, what people look at next and where they usually go wrong.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.

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