Monday, October 18, 2010

CANDLESTICKS POSITIONING - STAR AND HARAMI



Star Position

A candlestick that gaps away from the previous candlestick is said to be in star position. The first candlestick usually has a large real body, but not always, and the second candlestick in star position has a small real body. Depending on the previous candlestick, the star position candlestick gaps up or down and appears isolated from previous price action. The two candlesticks can be any combination of white and black. Doji, hammers, shooting stars and spinning tops have small real bodies, and can form in the star position.


Harami Position

A candlestick that forms within the real body of the previous candlestick is in Harami position. Harami means pregnant in Japanese and the second candlestick is nestled inside the first. The first candlestick usually has a large real body and the second a smaller real body than the first. The shadows (high/low) of the second candlestick do not have to be contained within the first, though it's preferable if they are. Doji and spinning tops have small real bodies, and can form in the harami position as well.

2 comments:

  1. Thanks for this. But what is the difference between morning and evening stars?

    ReplyDelete
  2. If you set out to make me think today; mission accomplished! I really like your writing style and how you express your ideas. Thank you.how to read candlestick charts

    ReplyDelete