What are Candlestick formations?

A comprehensive understanding of Candlestick Formations can really assist with your approach to risk. It can help you to clearly identify a price point in the market where you will not want to commit any more capital if price moves against you. That should be just a general basic overview in terms of a trader’s approach.

What is a engulfing pattern?

The engulfing pattern suggests a potential trend reversal; the first candlestick has a small body that is completely engulfed by the second candlestick. It is referred to as a bullish engulfing pattern when it appears at the end of a downtrend, and a bearish engulfing pattern at the conclusion of an uptrend.

What does a bullish Yo-Sen candle mean?

In case of a bullish Yo-Sen, it means that price has rallied all the way from the open until the close of the candle without moving lower and the candle closed at the absolute high, indicating further strength. Pinbars are probably among the most commonly discussed candle patterns.

What are candles made out of?

Candles can also be made from microcrystalline wax, beeswax (a byproduct of honey collection ), gel (a mixture of polymer and mineral oil ), or some plant waxes (generally palm, carnauba, bayberry, or soybean wax ).