Japanese Candlesticks

[Leth]

JAPANESE CANDLESTICKS
by Teresa Lo

We use Japanese candlesticks in conjunction with classic Western technical analysis.

-With moving averages in trending markets, such as Raschke's Holy Grail set-up;
-In areas of support and resistance; and,
-On tests of tops and bottoms, such as the Trader Vic 1-2-3 set-ups.

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Downtrend, followed by a successful test of bottom using the Trader Vic 1-2-3 method. Successful test confirmed by the 3 Inside Up pattern.

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Uptrend, followed by a test of top using the Trader Vic 1-2-3 method. Failure on test after a confirmed Dark Cloud Cover pattern.