EMQ Training Solutions1 Module 3 Session 1 – Basic Indicators Session 2 – Basic Japanese Candlesticks.

EMQ Training Solutions 1

Module 3

Session 1 – Basic Indicators

Session 2 – Basic Japanese Candlesticks

EMQ Training Solutions 2

Session 1 – Basic Indicators

Bollinger Bands

Variable Channel

Setting = 12:2

Indicates volatility and direction in market

EMQ Training Solutions 3

Bollinger Bands

Upper Resistance

Lower Support

Bottle

Neck

EMQ Training Solutions 4

Session 1 – Basic Indicators

DMI (Directional Movement Index) Indicates direction in the market Setting = 3 Green up through blue = Green down through blue =

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DMI

More Bullish

More Bearish

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Session 1 – Basic Indicators

Raff Regression Channel Indicates direction of trend Shows current support and resistance levels Setting = 13

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Raff Regression Channel

Upward confirmation Downward confirmation

Trend is Bullish

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Raff Regression Channel

Upward confirmation

Downward confirmation

Trend is Bearish

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Session 1 – Basic Indicators

Stochastic RSI (Relative Strength Index) Indicates direction of market Setting = 14:3 (Default) Indicates Divergence as well as

Convergence in market Indicates direction of trend

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StochasticRSI(Relative Strength Index)

Upward Trend

Long Trade

Short Trade

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Session 2 – Basic Japanese Candlesticks

12 Major Candle Patterns 6 Bullish Patterns 6 Bearish Patterns Indecisiveness

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Basic Bullish (UP) Candle

BODY

Highest

Lowest

Close

Open

Shadow

1 Candle = 1 time period

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Basic Bearish (DOWN) Candle

BODY

Highest

Lowest

Close

Open

Shadow

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Bullish Engulfing Pattern

Big Candles

New body engulfs previous body.

EntryEntry

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Bearish Engulfing Pattern

Big Candles

New body engulfs previous body.EntryEntry

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Piercing Pattern

Big Candles

New body opens lower than previous body but closes more than midway.

EntryEntry

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Dark Cloud Cover

Big Candles

New body opens above previous body but closes more than midway down.

EntryEntry

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Hammer

Shadow >= 2 x body

EntryEntry

50%

No upper shadow or small

Red or Green

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Hanging Man

Shadow >= 2 x body

Entry after candle closes below shadowEntry after candle

closes below shadow

No upper shadow or small

Red or Green

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Morning Star

Small Candle

Entry after green closes above 50%Entry after green closes above 50%

50%

Optimal Star gaps before and afterRed or Green

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Evening Star

Small Candle

Entry after red closes below 50%Entry after red

closes below 50%

Optimal Star gaps before and afterRed or Green50%

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Inverted Hammer

Shadow >= 2 x body

Entry after next candle closes above shadowEntry after next candle closes above shadow

No lower shadow or small

Red or Green

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Shooting Star

Shadow >= 2 x bodyNo lower shadow or small

Red or Green50%

Entry after red closes below 50%Entry after red

closes below 50%

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Bullish Harami

New body opens and closes inside previous body

Entry after next candle closes past big red candle

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Bearish Harami

New body opens and closes inside previous body

Entry after next candle closes past big green candle

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Indecisiveness

or Dragonfly Doji

Gravestone Doji

Longlegged Doji

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Indecisive except after significant trend:

or Dragonfly Doji after downtrend = HammerDragonfly Doji after uptrend = Hanging Man

Gravestone Doji after downtrend = Inverted HammerGravestone Doji after uptrend = Shooting Star

Longlegged Doji after downtrend = Morning StarLonglegged Doji after uptrend = Evening Star

EMQ Training Solutions 28BullishEngulfing

BearishEngulfing

PiercingPattern Hammer

MorningStar

InvertedHammer

BullishHarami

Dark Cloudcover

HangingMan

EveningStar

ShootingStar

BearishHarami