Candlestick Patterns

Advanced Candlestick Patterns

Fry Pan Bottom
Cradle Pattern
Jay-Hook
Scoop Pattern
Belt Hold
Breakout Patterns

Introduction to Advanced
Candlestick Patterns

Fry Pan Bottom

Fry Pan Bottom

The downtrend starts

waning with the
appearance of small
trading bodies
As the trend starts slowly
curling up, a gap up in
price indicates that strong
buying sentiment has
now returned

Fry Pan Bottom minutes, days, months

Long Rounded Curved bottom

Fry Pan Bottom - Past Analysis

Big Percent move at top has a different

meaning when a pattern can be identified

The indecisive rounding bottom is the predominant factor

Candlestick Patterns

Fry Pan Bottom measuring point

Fry Pan Bottom - A Break Out or Failure?

A dimple usually marks

the Halfway point

Easy identification of a failure, which

makes for easy stop loss procedures

Fry Pan Bottom can become a Cup and Handle

CUP

Fry Pan Bottom Exuberant buying

Handle
Want to see break out buying

Or a J-hook pattern

Fry Pan Bottom What is expected?

CLWR Classic FP results

Candlestick Patterns

MICC excellent option trades

VCI Expected results

55% Gain

SQNM Breaking into new highs

INCY What is the entry strategies?

MEOH Option Strategies

SPWRA What does a gap up tell us?

Candlestick Patterns

BAS What do you do with this chart?

MD What pattern?

MGM Next target? Then what?

What do we want to see at the end of a FPB?

What Are we looking for now?

FPB/J-hook classic

Fry Pan Bottom

J-hook

Candlestick Patterns

Cradle Pattern

Cradle pattern

The Cradle Pattern is a symmetric

bottom pattern that is easy to
identify.
A downtrend becomes obvious
with a large black candle at the
bottom.
A series of small or indecisive
trading days trade in a flat area.
A bullish candle, more powerful
with a Bullish Engulfing signal, is
formed of approximately the same
magnitude as a Bearish candle at
the end of the downtrend.

This signifies that the Bulls have

come out of the indecisive trading
area with decisive force.

Cradle Pattern

Cradle Pattern what is the predominant indicators?

Cradle pattern

Cradle Pattern at the MAs

Candlestick Patterns

Cradle pattern

Jay Hook Pattern

The first move of the
uptrend is very strong.
A candlestick sell signal
indicates a pullback about
to occur.
After a few days, small
indecisive candles start to
appear
Doji, small Hammers,
Bullish Engulfing signals

Jay Hook Pattern

The first test becomes the
recent high
Indecision as found in
candlestick sell signals at
the recent high becomes
a quick indicator to get
out of the position
A Bullish candle
breaching the recent high
illustrates that investor
sentiment is taking prices
up

J-hook

Jay Hook Pattern

How to differentiate between profit taking
and a full-scale reversal.

Jay Hook

Candlestick Patterns

J-Hook How to Identify

The pull back is stopped when

Candlestick buy signals appear

J-hook - what is first criteria?

A strong price trend

Stochastics do not get to the

Oversold area

J-Hook with added confirmation

J-Hook Easy Expectations

Indecisive trading at a major moving average

Adds more evidence of a J-hook pattern potential

Scoop Pattern
An extended flat
trading area
Followed by a pullback

Buy signals bring

price back up to flat
trading range
Once price breaks
above flat range, look
for strong uptrend

Scoop Pattern formation

Candlestick Patterns

Scoop Pattern- Completed

Scoop pattern

Scoop pattern off the MAs

Scoop pattern - Do not scan for a Scoop

Scoop pattern Use it to analyze

Scoop Pattern - What should happen upon confirming?

Candlestick Patterns

Scoop Pattern - A strong trend to potential targets

DHI 50 MA resistance?

WY

Mini Scoops

LVS

PCX

Candlestick Patterns

MEE What is the buy criteria?

WYNN

Belthold

Belt Hold Pattern

Strong prevailing trend
The candlestick body
should be the opposite
color of the prevailing
trend
Gap on the open,
continuing the trend
The open is the high or
low of that trend
The length of the body
should be a long body.

Belthold - Adds strength to existing trends

Belthold shows the sellers are flushed out

Candlestick Patterns

Belthold gets rid of the last of the sellers

Belthold

Belthold

Belthold Bearish

Breakouts

Breakout Patterns
Knowing

when to get on
board and when to take
profits.

Candlestick Patterns

Breakouts

Moving
Averages
Support

Breakout where to buy?

Candlestick Patterns

DOW

Analyzing The
Market

MAs support and targets

MAs act as magnets

Candlestick Patterns

MAs and patterns

MAs once breached , will come back and test

MAs Targets

MAs first attempts usually fail

Wave 1-2-3

The T-line

Candlestick Patterns

Trend channels

Trading Gaps
Gaps represent enthusiasm to get into a position
to the point that investors will pay prices away
from any of the previous day's trading range.
Great for identifying panic selling at the bottom
and exuberant buying at the top.

HAR Stop Loss

High Powered Scanning Techniques with Candlesticks

Market trend
Strongest sectors
Strongest signals in those sectors
Additional indicators confirming
Best Target potentials
Easy stop loss points

Analyze best potentials

The Signal
The pattern
Where is it moving from? Mas, trendlines?
Where is the next resistance area?
What is the sector doing?

Money
Management
Eliminate
Emotions

Candlestick Patterns

The Point of investing is to have

the probabilities in your favor!
Candlestick signals provide the
positive probabilities

Candlesticks are merely the

graphic depiction of what
investor sentiment is doing

2008 Downtrend Easy analysis

Trend Analysis
Made easy with
Candlesticks

MAs support to resistance

Sell signals at declining MAs

Double Top at 200 MA
Dumpling Top

Cradle BUY

Double Top at 200 MA

J-hook

Candlestick Patterns

Dumpling Top has expectations

The Bottom Morning Star/Cradle Pattern

J-hook ends with Cradle pattern

What is the market doing Now?

Recent Rec - XTEX

CSIQ

Candlestick Patterns

MIPS buying the BO

CCME buying the J-hook

SOHU buy on BO

Buy when the patterns say to buy - BAS

F signals and MAs

Cradle Pattern indicates very strong uptrend

What was the market doing?

Candlestick Patterns

DOW trend

Signals at the MAs make HP trades

CORN

XIDE buy on BO confirmation

www.candlestickforum.com

WFR signals need confirmation