Candlestick Functions in exploring the momentum size- Lesson 5

In this tutorial we discuss the subject of how to exploring the sizes of momentum in the candlestick, and we use the word ("the momentum") in technical analysis in the sense ("pushed prices sharply") may be driving prices sharply upward at increasing the buying momentum with the increase in buyers and called it ("bulling momentum "), or may be driving prices sharply momentum downward with the increase of sellers and called it (" the bear momentum "). 

So that technical analyst can to explore cases of the momentum in the charts of candlestick, so it must study the origins of the stages of candlestick birth on chart during her different lifecycle, because everything has an origin, and the origin is built upon the other, and each branch comes from origin, And when we get caught up from the original we say that it has no base. we add to this, that each building has rules and columns and roof, if broken down rules fall down the entire construction of the roof to the rules, because there are hundreds of forms of Japanese candles which can be seen on the charts, We review the most important bases upon which to build forms on the candlestick charts that help technical analyst at the end of the day to sort out cases of price movement on the chart and the discovery of cases of the ups downs of cases of oscillation.  

The story of the birth of the new candle:

Once you close the old candle, a new candle starts and we call the moment of the birth of the candle ("the beginning of the balanced candle ") and the artistic analyst can see this candle on the right hand of the chart ("it is the last candle and it was in a movement up and down") for this it is called on animated candles the name ("live candle ") and generally live candles do not stop of the movement, only at  the end of the round trading determined by the time frame, as we said previously.    

From the perspective of experiments of our own, we can say for sure that the origin of all forms of Japanese candles come back to ("balanced candle ") and we call it the "mother of all candles ", because when this candle starts, it does not have a body does not have the shades and the Open Price is the same closing price, if it is the first moment of the birth of any new candle.

Family tree of candlesticks:

Four Price Doji ( mother of all candles) does not stop from birth, for example, if a technical analyst chose Frame time of 1 minute, Four Price Doji will give birth every minute, give birth to new candle, and therefore it is the main root of the family tree candlestick but this family has two branches, the first branch group of individual Japanese candles, it divided into four major factories each one produces dozens of children from forms of individual candles Japanese single candlestick patterns, the second branch is candles Japanese compact or composite candles set (Compact candlestick patterns )which is about constructing  firstly three or more on each other and this hybrid resulting in the birth of a new candle, and it is divided from composite candles two sections and they are BullishPatterns, and BearishPatterns.

Single candlestick patterns

Hammers patterns	Spinning Tops patterns	Doji candlestick patterns	Normal candlestick patterns
Blue Hammer candlestick	Red Spinning Tops	Gravestone Doji	Blue Marubozu Candlestick
Hanging Man candlestick	Blue Spinning Tops	Dragonfly Doji	Red Marubozu candlestick
Red Hammer candlestick		Doji candlestick	Long Days candlestick
Shooting star		Long-legged Doji	Short Days candlestick
Red Inverted Hammer		Short-legged Doji	Yes Sen candlestick
Blue inverted Hammer			In Sen candlestick

We all know that any product produced in factories must pass the stages of production, or what we call the cycle of production until the product reaches its final form, the final product may be a high-quality product may be bad, and we are in the school at night to learn Forex will not go talk to talk too much special to all forms of Japanese products candles because there are hundreds of forms of Japanese candles, but we will take care and God willing, only the most important products of the most influential Japanese candles on the future prices.

Stages of candlestick production:

First. Stage of composition of the bulling bodies

 

When buyers or sellers start trading, the form ("candle or candlesticks") is changing, and the stage of composing the candle body that grows and thrives, depending on the type of this food this body grows , so if the largest source of this food , coming from buyers, the body candle grows hand up and the color of the body is blue and as long as prices are higher than the opening price of the candle The body type ("bulling"), and the size of the growth of this body is large or small or medium depending on the body feeding and we mean a word ("Nutrition") in the case of a bulling candle is  blue as provided by the buyers of the quantities of buying in the currency, the more the quantities were large ("increase momentum SPV"), the body of the candle was long and colored in blue, and whenever quantities were ("low momentum SPV") the body of the candle was short and colored in blue.

With the assumption that the time period for this open candle ended and the candle closed on the image above, this candle as such, called Blue Marubozu Candlestick and this type of candles which there is no upper shadow or shade of substrate and express control of the bulls on the market.

Second. Composition of the upper stage of the shadows

Since currency trading is trading in the currency pair, if it must be at the other side numbers of sellers trying to feed the candle body according to their purposes in order to win the round and push prices down, in this case, the source ("Nutrition") is provided by the sellers of amounts of selling in the currency, and the more sellers tried to pressure on prices downward, If they succeeded in return prices back to the level of Open Price , so This is the case of confirmation of the existence ("high pushing of sale"), and here we start Note phase formation where upper shadows of the candle that reflect the behaviors that had been carried out buyers before the advent of sellers who were able to return prices to an equilibrium state, and, as we note in the caption below the image, The upper shadows may be long or short or medium according to the size of bullish momentum provided by the buyers of sizes financial to buy the currency , long upper shadows refers to large purchasing sizes ("High pushing of buy") .

Third. Stage of composing bearing bodies:

Come back again to put ("Four Price Doji ") and talking about other cases of the candle industry, for example, when buyers or sellers start trading, the form of ("Four Price Doji ") is changing, and begin configuration stage of candle body which grows and feeds, if the largest source of this feed was, coming from sellers, the candle body grows hand landing and the color of this body color is red and as long as the prices become lower than the opening price of the candle The body type ("Bearing"), and the size of the growth of this body is large or small or medium depending on the body feeding and we mean a word ("Nutrition") in the case of a candle red bearing are provided by the sellers of the quantities of sale in the currency, the larger the quantities large ("increase momentum Bearish") was the body of the candle long and colored red, and whenever a few quantities ("low Bearish momentum") was the body of the candle shorts and colored in red.  

Fourth. Configuration phase lower shadows

Since currency trading is trading in the currency pair, if it must be at the other side numbers of buyers trying to feed the candle body according to their purposes in order to win the round and push prices higher, in this case, the source ("Nutrition") is provided by buyers buy in quantities of currency, and the more buyers tried to push prices upwards, If they succeeded in raising the price again to the level of Open Price, in This is the case of confirmation of the existence ("High pushing of buy"), and here we start Note forming stage appearance be shadows bottom of the candle that reflect the behaviors that had been carried out vendors before the advent of buyers who were able to raise prices and the return of an equilibrium state, as can be seen in the illustration below, the shadows bottom may be long or short or medium according to the size of the momentum Bearish provided by the sellers of sizes Financial in the sale of currency because the  lower long shadows indicate sizes selling large ("high pushing of sale ") .

So now we know the names of the four forms of Japanese candles, regardless of their classification, let us remind you these names:

(1) Blue Marubozu Candlestick

(2) Red Marubozu Candlestick

(3) Gravestone Doji

(4) Dragonfly Doji