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The long jump: the opening price is the start up, the price session the run up, the closing
price the take off. Length of the jump depends on timing of run up and condition of take
off.
In the body, more concentrated trade, heavier volume than in wick, therefore more
important signal is between opening and closing.
1) If 2nd line close below center of 1st line, then is confirm turning point.
2) Longer upper shadow for 2nd line; less selling power.
3) Bottom shadow for 2nd line is buying resistance.
Tasuki line :
Sell
Buy
Sell Buy
1 1 2 2 3 3
1) 2nd lines color does not matter, its 1st line color that is indicative.
2) Heavy volume in 2nd line
3) Strength is divided between price pushers and profit takers.
4) Must see that previous few lines before 1st line is same trend as 1st line.
1 1 2 2 3 3 4 4
1) Same as Harami.
2) Indicate ceiling.
3) There is gap between main body 1st line and 2nd line low.
4) If 3rd line is long black line, it is a 3-river evening star.
1 1 2 3
1) 1 is same as atekubi.
2) 2 is probably a Kabuse line.
Ikichigai line (moving away lines):
1 1 2 2
1 1 2 2
Sakata’s 5 methods
1) Sanzan (3 mountains)
2) Sansen (3 rivers)
3) Sanku (3 gaps)
4) Sanpei (3 parallel lines)
5) Sanpo (3 methods)
1) Sanzan
Heads and shoulders, double top/bottom, round top/bottom.
Sakata’s favourite is a round bottom with a gap up—strong buy.
2) Sansen
It is a hoshi followed by a long black line. It is a strong signal of market turn. It can
be for the other way too.
3) Sanku.
In a rising market, 3 gaps between 4 red lines are indicative of completion of short
covering, thus reaching a top, and is a SELL.
Once it falls below top gap, it is a SELL.
It will fall to below the middle gap.
Vice-versa for falling market.
4) Sanpei
Lines start above/below(rising/falling) center point of previous line.
Above/below (rising/falling) previous 5-6 lines, direction will continue.
If lines get weaker, then it is time to take profit.
5) Sanpo
The three methods: Buy, Sell, Rest.
When unsure or when market is reactionary, stay out.