The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

Japanese Candlestick Analysis

integrating Candlesticks with Cycle analysis

In Figure 14.42 we observe consistent cycle troughs on the daily chart in Gold.

The last cycle trough rebounded strongly off a linear regression lower band.

Refer to Figure 14.43 for a close up on the Marubozu reaction of the linear

regression lower band at Point X on the 4‐hour charts. Again, a convergence of

bullish indications will normally result in more reliable forecasting of potential

reaction levels in the market. This dominant cycle in Gold represents significant

information of its future behavior.

figure 14.42 Identifying the Dominant Cycle on the 4‐Hour Chart of Gold.

Source: MetaTrader 4

figure  14.43 Integrating Cycle Troughs with Candlesticks on the 4‐Hour Chart of

Gold.

Source: MetaTrader 4