Candlestick
Examples
Courtesy of Candlestickshop.com
Daily Candlestick Charting
Weekly Candlestick Charting
Bullish Harami Candlestick Play Instructions
Step 1 - Look for a BULLISH HARAMI resting on MINOR PRICE
SUPPORT, and/or a rising Major Moving Average (10 MA, 20 MA, or 50 MA) on the
daily chart.
Step 2 - Pull up a 15 min. chart of the stock.
Step 3 - Note the high price of the previous day's daily
HARAMI candlestick. Your entry point is 1/8th above this price.
Step 4 - On the following day, allow the stock to trade
for 5 minutes before entering. Enter the stock only if it breaks above the
entry criteria (1/8th above previous day's high) and only after it has traded
for 5 minutes. If the stock does not break above the entry point, do not
enter.
Step 5 - Place the initial protective stop 1/8 below the
low of the previous day's HARMAI candlestick. Exit the stock for a small loss
immediately if the stock breaks below this price.
Step 6 - Monitor the stock as it continues to rally
upward. Look for areas of support (either minor price support or base price
support) on the 15 minute chart, and re-adjust your protective stop price
upward as the stock continues to rally. This will protect your profits,
and/or minimize your losses if the stock should turn against you.
Step 7 - Monitor the stock on a 15 min. charts as it
climbs upward, and stay in as long as the protective stop is not violated.
Allow the stock to achieve 1 point or greater profit, and then look for signs
of weakness. A reversal candlestick pattern on the 15 minute chart will serve
as a good indicator for a reversal point. After the price reaches an area of
resistance and weakens, sell half of your position. This may occur on the
same day as entry, or on the following day, depending on the strength of the
stock. Maintain the latest protective stop price for the remaining half of
your position.
Step 8 - Allow stock to continue it's rally. After the
stock has rallied further, again look for an area of resistance where the
stock begins to weaken and reverse. This could be a DOJI candlestick, or any
other reversal candlestick pattern on the 15 min. chart. Sell the remainder
of the position for profit.
Financial Ad Trader
© Copyright 2003 Sunset Capital Management Ann Arbor, Michigan
