2) How do I read a Japanese candlestick chart?
3) Where did the candlestick charting technique and analysis originate?
4) What software/hardware is required to access HotCandlestick EOD service?
5) Which Japanese candlestick formations does HotCandlestick.com track for me daily?
6) What criteria are considered when calculating the strength of a candlestick formation? And, how do I interpret the strength value?
7) Why do I see a Bullish Engulfing (or any other) candlestick formation for a specific stock yet it is not identified on HotCandlestick.com?
8) Besides HotCandlestick.com, what other sources of information are available on Japanese candlesticks?
9) What are the technical support telephone number and other contact information?
10) What if I forgot my password or username?
11) Having problems logging in?
12) Where is the glossary of candlestick charting terms located?
13) What are examples of database queries I can perform as a subscriber of the HotCandlestick service?
14) Where do I go to do a daily search of candlestick patterns by putting in my criteria?
15) Where do I go to look at the various candlestick patterns and figure out which are stronger versus weaker indicators of predicted movement (SCORE)?
16) Are the intraday candlestick patterns identified by HotCandlestick pretty accurate--meaning, are the delayed signals given, at say 12:58pm PST, consistent with what you would get end of day?
17) Why are the HotCandlestick charts always shown using a logarithmic price scale?
18) When is the daily update of candle patterns complete on HotCandlestick.com?
19) How do I search for all bullish weekly candle patterns that have appeared within the last couple of weeks?
20) I'd like to subscribe to quarterly or annual membership at the reduced rate. My account is already charged with $29.99/30 days. Can you change it to quarterly or annual auto-renew for me?
21) Why is it sometimes I find bearish patterns listed on the first page when I login (Page titled "Top LONG (BUY THEN SELL) candles found today based on historical data")? I do not understand why a bearish pattern would indicate a bullish condition.
22) How frequently are the forex charts updated throughout the day?
Click here to view our payment options.
HotCandlestick Service ($29.99 / 30 days, $76.50 / 90 days, or $252 / year): End of day daily, weekly and intraday candlestick analysis of stocks traded on the AMEX, NYSE, NASDAQ, Toronto (TSE) and the Canadian Venture (Cdnx) exchanges. Canadian and USA indices included. FOREX (currency market) included. Searchable/sortable historical data going back to 1992 - updated daily. Swing traders love this one. View the benefits then signup for the HotCandlestick service.
We also offer a wide variety of candlestick charting books and many other trader tools.
Click here to find candlestick charting books (or other books/videos/software).
CANCELLATION OF SERVICE: If for any reason you are unsatisfied with the service within the first 30 days then use the support form to request a refund of your first subscription payment and we will issue the refund then cancel your subscription, no questions asked. Limit 1 refund per subscriber. Refund must be requested within the 1st 30 days of the subscription. Refund is available only for the first payment. Please include your login id and the date that you wish to cancel.
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Japanese candlesticks offer a glimmer into the psychology of short-term trading activity. Candlesticks can show whether the buyer or seller has control of the market. The high and low are described as shadows and plotted as a single line.
The price range between the open and close is plotted as a rectangle on the single line. If the close is above the open, the body of the rectangle is white. If the close of the day is below the open, the body of the rectangle is red.
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So have a look around and sign up today!
There is simply no other web based stock service providing this level of daily analysis.
The HotCandlestick.com service works fine with the following (perhaps other) operating systems and web browsers.
OS: Windows 95, 98, NT4, ME, 2000, XP, Vista, MAC OS
Browsers: Firefox, Microsoft Internet Explorer, Netscape, AOL, Opera, and many others
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The strength value can be any value. However, it will tend to gravitate toward zero. A positive value means there is a positive correlation between the candlestick formation's definition of a proper setup for the formation and what is actually happening on the stock chart in recent days. For a candlestick pattern with a negative strength, this signifies that the price action prior to the candlestick pattern does not correlate with the defined expected forward price action of the stock. The larger negative strength value correlates less with the setup of the candlestick pattern.
Click on any of the patterns at http://www.hotcandlestick.com/candles.htm to view the defined expected forward price action for a particular candlestick pattern. HotCandlestick.com looks for the defined expected forward price action to manifest itself in the stock price over a period of 1-10 days after the daily candlestick pattern appears.
The interpretation of strength values depends on what type of pattern we are referencing. And, not all patterns hold all of the time due to the many factors that play into the price action of a stock. Supply / Demand, fundamental news, world events, etc. So we caution you to not rely solely on candlestick patterns to make your trading decisions. We incorporate 14-day fast stochastics and HCS Intraday Momentum Index (HotCandlestick IMI) into our database to serve as additional technical indicators to help you in making your trading decisions. Subscribers can query and sort by these indicators.
From the HotCandlestick "Search Databases" page subscribers can view actual results of the subsequent 1 to 5 day performance for each day a candlestick pattern appeared. These are not optimized performance numbers based on maximizing performance by using intraday prices. Instead, the percentage gains are based on the close for each of 5 days following a candlestick pattern using the first day close as the reference value.
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Long and short candle body sizes are determined using a relative comparison of the previous 25 daily candle bodies on a stock by stock basis. This method of determining candle body size means that a non-volatile stock such as an ETF based on an index may have a long candle definition of a 1.4% price movement from the opening to closing price. And a volatile stock may have a long candle definition of 8.7% price movement from the opening to closing price.
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- Books - Japanese Candlestick Charting
- Candlestick Charting Basics - Japanese Method
- Another interpretation of Candlestick Charts - Artificial Intelligence Quotient highlighting the Spinning Top.
- Steve Nison on candlesticks - Listen with Windows Media Player.
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2. Click "Member Pages" text link
3. A gray login box should pop-up. Enter your login information as follows (both are cAsE sEnSiTiVe):
user name =
password =
(These were emailed to you - make sure that your email account is not over quota so you are able to accept new email.)
4. You are now logged in. You should see a new set of navigation buttons on the left...
If you are still having trouble then you may need to change the following setting in Internet Explorer:
Tools/Internet Options/Security/Custom Level/then at the bottom of the list is User Authentication/Logon. Uncheck anonymous login box. Select Automatic logon only in Intranet zone. If Automatic logon only in Intranet zone doesn't work then select Prompt for user name and password.
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RIGHT HERE :-)
REAL BODY
The real body is the rectangle made by the difference between the open and close of the trading day. The real body will be white on days that the stock closes higher than it opens, and red on days that it closes lower than it opens.
SHADOWS (UPPER AND LOWER)
The upper shadow is the vertical line drawn from the top of the candlestick's real body to the days high. The lower shadow is the vertical line drawn from the bottom of the candlestick's real body to the days low.
SPINNING TOP
A candlestick with a small real body and long upper and lower shadows.
Artificial Intelligence Quotient highlighting the Spinning Top.
LONG DAY
A candlestick which displays a big difference in opening and closing price compared with typical trading days in the previous 25 days.
SHORT DAY
A candlestick which displays a small difference in opening and closing price compared with typical trading days in the previous 25 days.
MARUBOZU
A candlestick that displays non-existent or insignificant upper and lower shadows.
DOJI
A candlestick that with a closing and opening price either identical or very close (compared to previous 25 days).
STAR
A candlestick with a small real body that gaps above or below a long candlestick occurring the previous day.
TREND
The general movement of a stock's value over a period of time. If a stock's price is generally increasing over a short period of time it is said to be in a bullish trend. If a stock's price is generally decreasing over a short period of time it is said to be in a bearish trend.
CANDLE FORMATION or PATTERN
A candlestick or group of candlesticks.
STRENGTH
A loose measure of the potential for a move in the stock price in the direction indicated by the candlestick formation. Large positive values show strong correlation of the candlestick formation with the candlestick technical indicators used on HotCandlestick.com. Negative values show conflict between the candlestick indicator (bullish or bearish) as defined on HotCandlestick.com and the recent price trend prior to the candlestick pattern formation. In general, the more individual candlesticks that make up a formation, the higher the strength value. Recent price trends are considered and affect the polarity of the strength value.
VOLUME
HotCandlestick.com displays the daily, weekly and/or the 14-day or 14-week simple average volume.
VOLUME BY PRICE
HotCandlestick.com displays the volume by price on the charts as a light blue horizontal bar for each of the price intervals for which the stock has made a close. Volume by price combines both volume and price data into one convenient tool. The bars are drawn based on the closing prices. Volume by price can be used to find at which prices most of the volume has occurred for the time frame indicated on the chart. This can be helpful to determine meaningful support & resistance levels. Price ranges of high volume can indicate support when the stock is trading near a low just above a high volume area. Likewise, price ranges of high volume can indicate resistance when the stock is trading near a high just below a high volume area. Areas of low volume can indicate uncertainty. Areas with no volume indicate price gaps. Price by volume should not be used as a sole indicator as it is subjective.
INTRADAY MOMENTUM INDEX
The Intraday Momentum Index (IMI) was developed by Tushar Chande. The calculation of the IMI is very similar to the RSI (Relative Strength Index), except it uses the relationship between the intraday opening and closing prices to determine whether the day is 'up' or 'down.' If the close is above the open, it is an up day. If the close is below the open it is a down day. Therein lies its tie to candlestick charting. For those people familiar with candlestick charting, the IMI separates the red and white candlesticks and performs a RSI calculation on the candlestick bodies. The HCS IMI (HotCandlestick Intraday Momentum Index) is based on the Chande IMI, however is slightly different.
Overbought/Oversold: Index values above 70 indicate a potential overbought situation with lower prices ahead. Values below 30 indicate a potential oversold situation with higher price ahead. As with all overbought/oversold indicators, you should first quantify the prior trend of the market before acting on the signals. HotCandlestick.com automatically computes the trend strength and incorporates it into the Strength calculation. Indicators like the VHF (Vertical Horizontal Filter), CMO (Chande Momentum Oscillator), and r-squared can also be used to gauge the prior trend of the market.
Divergences: The basic premise behind the IMI is that shifts in intraday momentum lead shifts in interday momentum. Look for divergences between the indicator and the price action. If the price trends higher (lower) and the IMI trends lower (higher), then a reversal may be imminent.
Candlestick Confirmation: The IMI is useful in confirming candlestick patterns. For example, before acting on a bullish candlestick pattern, you may want to confirm the bullishness with the IMI.
FAST STOCHASTIC (%K)
Overview: Sto.chas.tic (sto kas'tik) adj. 2. Math. designating a process having an infinite progression of jointly distributed random variables.
--- Webster's New World Dictionary
The Stochastic Oscillator compares where a security's price closed relative to its price range over a given time period.
Interpretation: The Stochastic Oscillator is displayed as two lines. The main line is called "%K." The second line, called "%D," is a moving average of %K. The %K line is usually displayed as a solid line and the %D line is usually displayed as a dotted line.
There are several ways to interpret a Stochastic Oscillator. Three popular methods include:
[1] Buy when the Oscillator (either %K or %D) falls below a specific level (e.g., 20) and then rises above that level. Sell when the Oscillator rises above a specific level (e.g., 80) and then falls below that level.
[2] Buy when the %K line rises above the %D line and sell when the %K line falls below the %D line.
[3] Look for divergences. For example, where prices are making a series of new highs and the Stochastic Oscillator is failing to surpass its previous highs.
HotCandlestick.com currently considers only the 14-day fast stochastic (%K) when displaying data tables. The reasoning behind this is that when using daily candlesticks as a trading guide, HotCandlestick.com finds the most value in the 14-day fast stochastic. Currently only the %K crossover with the HCS IMI is considered.
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See Question 14.
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