I think one of the most effective ways to analyze the market is by candlestick analysis. Patterns and shapes can help a trader to assess the market situation. Some of them are rare on the chart. But there are also such candlestick combinations that are formed on the price chart quite often, which allows you to use them in your analysis. For example, absorption figures. I want to tell you about them today. These candlesticks are a turning point, consist of two candlesticks and have two options: bull and bear.

Wild absorption figure

It is formed as follows. After a long time.
of a downward trend, a bull candle appears. At the same time, the price of its opening should
to be lower than the closing price of the previous bearish candle. It’s ideal. On the stock market.
of the market, it’s not uncommon. And here’s the difference between these prices on the forex market,
is usually only 1-2 points. The second condition for identifying this
Figures: the closing price of a bullish candle is higher than the opening price of the previous bearish candle
candles. In other words, the body of a bull candle covers the body
a bear candle. I want to point out that the bigger the size of these two candles, the more
there’s a greater likelihood of a trend reversal. And if there was a gap.
is much lower than the closing price of a bearish candlestick), you can safely open an order
BUY. Stop-loss in this case is recommended to be placed approximately in the middle
of a bull signal candle.And now let’s see an example of how a bullish absorption figure can look on a chart:Acquisition figures that I have told you about today have been used by traders for decades. They work well in all markets. Therefore, every trader should know about these candlestick models and monitor their appearance on the price charts. This will allow you to enter the market at the very beginning of the nascent trend movement and get a good profit. Absorption figures form qualitative signals for opening trading positions. But in any case, do not forget about the rules of risk reduction, because there are no signals that guarantee profit in the markets.Fyodorov’s Inga02.08.2019