Trading with Candlesticks Ted Wallack Jan. 14, 2014

Hammer Candle Hammer candles are good for a reversal, if after a downtrend. The larger the tail the more important.

Engulfing Candle An engulfing Candle can note a change in trend, if follow thru buying. The body totally covers the other body. The higher the price pops the more significant.

Shooting Star Candle This is bearish a turning point.

Engulfing candle, 12/12

Shooting Star- Oct., 2012 Shooting Star 10/12

A steep slope leads to a mean reversing or major reversal. Support/Resistance line – the longer the more important. Use moving averages as a reference. Focus on divergence between oscillators. The longer the divergence the more important. Fibinacci numbers are significant. 23.6, 38.2, 50, 61.8 percents

Steep Slope 11/12

Support/Resistance line 12/13

July 2012 Engulfing Candle

Macd, Stoch turn down early 2012.

Important Overall Monetary & Policy Environment Look for technically sound charts What do the candlesticks say

Big Moves A strong price reversal ( bullish) market has been basing. Stochastics oversold Wait for follow thru

Signals together- 10/13

Downward Move 7/11

Summary- when to buy The economic environment should be positive. The overall market should be in an uptrend. The sector must be in uptrend. The stock should be in an uptrend. It is best if the indcicators and the candlesticks confirm the trend. Remember that cnadlesticks can be wrong sometimes. the