Candlestick Charts The Japanese have been using candlestick charts since the 17th century to analyze rice prices. Candlesticks were introduced into modern technical analysis by Steve Nison in his book Japanese Candlestick Charting Techniques. Candlesticks contain the same data as a normal bar chart but highlight the relationship between opening and closing prices. The narrow stick represents the range of prices traded during the period (high to low) while the broad mid-section represents the opening and closing prices for the period. If the close is higher than the open - the candlestick mid-section is hollow or shaded blue/green. If the open is higher than the close - the candlestick mid-section is filled in or shaded red. The advantage of candlestick charts is the ability to highlight trend weakness and reversal signals that may not be apparent on a normal bar chart.
5.Abandoned Baby (Bullish) • Direction: Bullish • Type: Reversal • Reliability: Strong • Day-one is a red day continuing an established bear trend. • Day-two is a doji whose shadows trades below day-ones close. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81663371
10.Marubozu Candlesticks Marubozu are even stronger bull or bear signals than long lines as they show that buyers/sellers have remained in control from the open to the close -- there are no intra-day retracements. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81663489
21.Engulfing Candlesticks Engulfing patterns are where the body of the second candlestick 'engulfs' the first. They often follow or complete doji, hammer or gravestone patterns and signal reversal in the short-term trend. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81663699
22.Harami Candlestick A Harami formation indicates loss of momentum and often warns of reversal after a strong trend. Harami means 'pregnant' which is quite descriptive. The second candlestick must be contained within the body of the first, though the shadows may protrude slightly. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81663705
27.Momentum: Momentum is usually measured with an oscillator such as MACD. If MACD is above its 9-day EMA (exponential moving average) or positive, then momentum will be considered bullish, or at least improving. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81663762
28.Doji Star A Doji Star is weaker than the Morning or Evening Star: the doji represents indecision. The doji star requires confirmation from the next candlestick closing in the bottom half of the body of the first candlestick http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81663763
29.Rising Three Methods The Rising Method consists of two strong white lines bracketing 3 or 4 small declining black candlesticks. The final white line forms a new closing high. The pattern is definitely bullish. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81663768
30.Falling Three Methods The bearish Falling Method consists of two long black lines bracketing 3 or 4 small ascending white candlesticks,
31.Tweezer Tops The Tweezer Top formation is a bearish reversal pattern seen at the top of uptrends. Tweezer Top formation consists of two candlesticks: Bullish Candle (Day 1) Bearish Candle (Day 2) Sometimes Tweezer Tops have three candlesticks. A bearish Tweezer Top occurs during an uptrend when bulls take prices higher, often closing the day off near the highs (a bullish sign). However, on the second day, how traders feel (i.e. their sentiment) reverses completely. The market opens and goes straight down, often eliminating the entire gains of Day One. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81663782
32.Tweezer Bottoms The Tweezer Bottom formation is a bullish reversal pattern seen at the bottom of downtrends. Tweezer Bottom formation consists of two candlesticks: Bearish Candle (Day 1) Bullish Candle (Day 2) Sometimes Tweezer Bottoms have three candlesticks.
A bullish Tweezer Bottom occurs during a downtrend when bears continue to take prices lower, usually closing the day near the lows (a bearish sign). Nevertheless, Day 2 is completely opposite because prices open and go nowhere but upwards. This bullish advance on Day 2 sometimes eliminates all losses from the previous day. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81663787
36.Three Black Crows (Bullish) The Bearish Three Black Crows Pattern is indicative of a strong reversal during an uptrend. It consists of three long black candlesticks, which look like a stair stepping downward. The opening price of each day is higher than the previous day's closing price suggesting a move to a new short term low. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81663796
41.UPSIDE GAP TWO CROWS The Bearish Upside Gap Two Crows Pattern is a three-candlestick pattern and it signals a top reversal. The first candlestick is a long white candlestick followed by a real body that gaps higher. Then another black real body appears, which opens above the second day’s open and closes under the second day’s close, completing the pattern http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81663827
42.THREE OUTSIDE UP The Bearish Upside Gap Two Crows Pattern is a three-candlestick pattern and it signals a top reversal. The first candlestick is a long white candlestick followed by a real body that gaps higher. Then another black real body appears, which opens above the second day’s open and closes under the second day’s http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81663830
43.FOUR PRICE DOJI The Four Price Doji is a single candlestick pattern.
49.MORNING STAR This is a three-candlestick formation that signals a major bottom. It is composed of a first long black body, a second small real body, white or black, gapping lower to form a star. These two candlesticks define a basic star pattern. The third is a white candlestick that closes well into the first session’s black real http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81663864
50.MORNING DOJI STAR This is also a three-candlestick formation signaling a major bottom reversal. It is composed of a long black candlestick followed by a doji, which characteristically gaps down to form a doji star. Then we have a third white candlestick whose closing is well into the first session’s black real body. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81663873