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Introduction

  • eBook Overview: A Quick Start Guide to the Bullish Bears Candlesticks intended to supplement Candlesticks Courses.

  • Instruction: Download desktop wallpaper backgrounds to enhance trading resources.

  • Purpose: Guides when to enter a trade and set stop losses using candlestick patterns.

  • Integration: Recommended to use this eBook alongside the courses that provide real-world video examples of candlestick patterns.

  • Candlesticks: They illustrate the fight between bulls (buyers) and bears (sellers), revealing support and resistance levels.

  • Essential Concepts: Emphasis on understanding support and resistance as key trading concepts.

  • Candlestick Colors: Bullish - green, white, blue; Bearish - red, black, orange.

Bullish Candlesticks

  • Definition: Formed when buyers have control of the market.

  • Characteristics:

    • Colors: Blue, green, or white.

    • Body Formation: Bottom represents open price, top represents close price.

    • Wicks/Shadows: Indicate highs and lows of the trading period.

  • Trading Strategy:

    • Entry: Long position when price breaks above the previous candle high.

    • Stop Loss: Below the low of the last candlestick.

Bearish Candlesticks

  • Definition: Formed under seller control, indicative of price decreases.

  • Characteristics:

    • Colors: Orange, red, or black.

    • Body Formation: Open price higher than close price.

  • Trading Strategy:

    • Entry: Short position after price breaks below the previous candle low.

    • Stop Loss: Above the high of the previous candlestick.

Candlestick Patterns

Hammers (Bullish)

  • Description: Bullish reversal wicks with small real bodies indicating seller push followed by buyer strength.

  • Trading Strategy:

    • Entry: Long position when price breaks above the high of the hammer.

    • Stop Loss: Close below the low of the hammer.

Inverted Hammers (Bullish)

  • Description: Bullish reversal formed at downtrends showing buyer entrance but unable to hold price.

  • Trading Strategy:

    • Entry: Long position when price breaks above the high of the inverted hammer.

    • Stop Loss: Close below the low of the inverted hammer.

Dojis (Indecision)

  • Description: Exhibit less volatility, indicating indecision among buyers and sellers.

  • Trading Strategy:

    • Entry: Long position above the high or short below the low of the doji.

    • Stop Loss: Close below the low or above the high of the doji.

Dragonfly Dojis (Bullish)

  • Description: Indicate bullish reversal formation at the bottom of downtrends.

  • Trading Strategy:

    • Entry: Long position when price breaks above the high of the dragonfly.

    • Stop Loss: Close below the low of the dragonfly.

Gravestone Dojis (Bearish)

  • Description: Bearish reversal at market tops displaying indecision followed by selling.

  • Trading Strategy:

    • Entry: Short position below the low of the gravestone.

    • Stop Loss: Close above the high of the gravestone.

Long-Legged Dojis (Indecision)

  • Description: Indicative of indecision with long wicks and small bodies.

  • Trading Strategy: Similar to regular dojis.

High Wave Candles (Indecision)

  • Description: High volatility pattern with long wicks, signaling indecision.

  • Trading Strategy: Adhere to long-legged doji strategy for trading.

Spinning Tops (Indecision)

  • Description: Show slight reversals; small bodies with long wicks suggest loss of control by buyers/sellers.

  • Trading Strategy: Trade as dojis depending on their formation in the trend.

Hanging Man Candles (Bearish)

  • Description: Bearish signal formed at uptrends with significant selling attempts.

  • Trading Strategy:

    • Entry: Short position when price breaks below the hanging man.

    • Stop Loss: Close above the high of the hanging man.

Gap Patterns

  • Gap Up: Bullish kicker when price opens significantly higher, typically on good news.

    • Trading Strategy: Buy when retest holds; set stop loss inside the gap.

  • Gap Down: Bearish kicker, forming with negative news.

    • Trading Strategy: Short position on retest failure; stop loss above the gap.

Trends & Patterns

Three White Soldiers (Bullish)

  • Pattern Description: Series of three consecutive bullish candles showing price movement.

  • Trading Strategy: Long position breaking above the first high with careful stop placement.

Three Black Crows (Bearish)

  • Pattern Description: Series of bearish candles suggest a strong pullback.

  • Trading Strategy: Short position below the first candle with defined stop placement.

Flags (Bullish/Bearish)

  • Bull Flags: Formed by a strong rise followed by lateral movement; bullish continuation.

    • Trading Strategy: Enter on break above flag; stop loss below.

  • Bear Flags: Price falls quickly, followed by upward consolidation.

    • Trading Strategy: Short on break below; stop loss above.

Triangle Patterns

  • Ascending: Formed by higher lows and flat resistance, bullish continuation.

  • Descending: Formed by lower highs and flat support, bearish continuation.

  • Symmetrical: Indecisive pattern that could signal either bullish or bearish breakouts.

Other Patterns

  • Cup and Handle: Bullish pattern indicating a consolidation phase followed by an upside.

  • Double Bottom/Top: Indicate reversal patterns crucial for trading signals.

  • Tweezers: Bullish and bearish patterns formed by two candlesticks with equal highs or lows.

Trading Community

  • Support: The Bullish Bears community focuses on education and affordable trading knowledge.

  • Vision: Helping each other succeed in trading without misleading expectations.