### ELLIOTT WAVE

A flat correction differs from a zigzag in that the subwave sequence is 3-3-5, as shown in Figures 1 and 2. Since the first actionary wave,

### Fibonacci studies: arcs, fans, retracements, and time

Overview: Leonardo Fibonacci was a mathematician who was born in Italy around the year 1170. It is believed that Mr. Fibonacci discovered..

### Indicator

The Negative Volume Index (“NVI”) focuses on days where the volume decreases from the previous day. The premise being that the “smart money” takes positions on days when volume decreases

### Basic Technicals

MACD technical analysis MACD technical analysis stands for moving average convergence/divergence analysis of stocks.

### Fundamental Analysis

Doubling Stocks Review: Is this a scam? If you are looking for the truth about doubling stocks this is a necessity. One always thought there was something wrong with a doubling of stocks.

## Tuesday, April 3, 2012

### BASIC CANDLESTICK CHARTING

The Japanese developed a method of technical analysis to analyze the price of rice contracts. This technique is called candlestick charting. Steven Nison is credited with popularizing candlestick charting and has become recognized as the leading expert on their interpretation.

What do Candlesticks Look Like?

Candlestick charts are much more visually appealing than a standard two-dimensional bar
chart. As in a standard bar chart, there are four elements necessary to construct a
candlestick chart, the OPEN, HIGH, LOW and CLOSING price for a given time period.
Below are examples of candlesticks and a definition for each candlestick component:

The body of the candlestick is called the real body, and represents the range between
the open and closing prices.
A black or filled-in body represents that the close during that time period was lower than the open, (normally considered bearish) and when the body is open or white, that means the close was higher than the open (normally bullish).The thin vertical line above and/or below the real body is called the upper/lower shadow, representing the high/low price extremes for the period.