Candlestick Corner | JAN 2002
Working Money: The Engulfing Pattern by Sharon Yamanaka
The Engulfing Pattern by Sharon Yamanaka This major reversal pattern is simple to use. You don’t even need additional indicators. Find out how. Candlestick formations originated in 18th-century Japan, where the market action was explained in much the same way that we describe stock market sentiment today: as an ongoing battle between bulls and bears fighting for control. Compared to the bar chart, candlesticks use the same information (high, low, opening, and closing prices), but the opening and closing prices are emphasized by converting them into rectangular bodies, or candlesticks, that are closed (dark) when the close is lower than the open, and open (white) when the close is higher (Figure 1). These bodies emphasize the bullishness or bearishness of the market. One glance will give the investor an overall impression of darkness or light that can highlight a stock’s rise or fall, even when the overall trend isn’t particularly apparent. And therein lies the strength of this charting technique.
by Sharon Yamanaka
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.