Candle 1

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jcocrat
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191859
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Candle 1
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2013-01-10 09:16:22
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  1. Belt Hold Line Bearish

    • A bearish belt-hold is a long black
    • candlestick that opens on, or near, its high and closes well off its open. Also
    • referred to as a black opening shaven head.
  2. Hanging Man

    • A top candlestick reversal pattern that requires
    • confirmation. The hanging man and the hammer are both the same type of
    • candlestick pattern (i.e., a small real body [white or black], with little or no
    • upper shadow, at the top of the session's range and a very long lower shadow).
    • But when this line appears dur­ing an uptrend, it becomes a bearish hanging man.
    • It signals the market has become vulnerable, but there should be bear­ish
    • confirmation the next session with an open, and better is a close, under the
    • hanging man's real body. In principle, the hanging man's lower shadow should be
    • two or three times the height of the real body.
  3. Shooting Star

    • A bearish candlestick pattern with a long upper shadow,
    • lit­tle or no lower shadow, and a small real body near the lows of the session
    • that arises after an uptrend.
    • Bearish Engulfing
    • A bearish engulfing candlestick pattern occurs when selling
    • pressure overwhelms buying force as reflected by a long black real body
    • engulfing a small white real body in an uptrend.
    • Counterattack Lines Bearish
    • Following a white candlestick in an uptrend the market sharply
    • higher on the opening and then closes unchanged from the prior session’s close. 
    • Dark Cloud Cover
    • A bearish reversal signal. In an
    • uptrend a long white candlestick is followed by a black candlestick that opens
    • above the prior white candlestick's high (or close) and then closes well into
    • the white candlestick's real body—preferably more than halfway. The bullish
    • counterpart of the dark-cloud cover candlestick pattern is the piercing
    • pattern.
    • Falling Window
    • The same as a Western gap. Windows
    • are continuation candlestick patterns. If a window opens in a sell­off, it is a
    • falling window. This is a bearish signal. The falling window is
    • resistance.
    • Gapping Play Falling
    • Low-price gapping play.  After a
    • sharp price decline, the market consolidates via a series of small real bodies
    • near the recent lows. If prices gap under this con­solidation, it is a sell
    • signal in candlestick trading.
    • Harami Bearish
    • A two-candlestick charting pattern in which a small real body
    • holds within the prior session’s unusually large white real body. The color of
    • the second real body can be white or black. 
    • Harami Cross Bearish
    • A two-candlestick charting pattern in which a doji real body
    • holds within the prior session’s unusually large white real body. 
    • Seperating Line Bearish
    • When the market opens at the same opening as the previous
    • session’s white candle and then closes lower as a black candle. 
    • Side by Side Lines Bearish
    • Two consecutive white candlesticks
    • that have the same open and whose real bodies are about the same size. In a
    • downtrend, on Japanese candlestick charts these side-by-side white lines are
    • still considered bearish (in spite of their white candles since they come after
    • a falling gap).
    • Tasuki Gap Bearish
    • A bearish gapping tasuki is when the market gaps down with a
    • black candlestick followed by a white candlestick. The last two candlesticks of
    • the tasuki should be about the same size. 
    • Tweezer Top
    • When the same highs are tested on back-to-back sessions. 
    • Abandoned Baby Top
    • A very rare Japanese candlestick top
    • or bottom reversal signal. It is comprised of a doji star that gaps away
    • (including shadows) from the prior and following sessions' candlesticks. This is
    • the same as a Western island top or bottom in which the island session is also a
    • doji.
    • Dumpling Top
    • A candlestick charting pattern that
    • is similar to the Western rounding top. A window to the downside is needed to
    • confirm this as a top. Its bullish opposite is the frypan bottom.
    • Evening Star
    • A top reversal pattern formed by
    • three candle lines on a Japanese candlestick chart. The first is a tall white
    • real body, the second is a small real body (white or black) that gaps above the
    • first real body to form a star, and the third is a black candlestick that closes
    • well into the first session's white real body. If the middle portion of this
    • candlestick pattern is a doji instead of a spinning top, it is an evening doji
    • star. The opposite of the evening star candlestick pattern is the morning star
    • pattern.
    • Falling Three
    • The falling three methods is a
    • bearish continuation pattern. It is ideally comprised of five lines. A long
    • black real body is followed by three small, usually white, real bodies that hold
    • within the first session's high–low range. Then a black candlestick closes at a
    • new low for the move.
    • Three Buddha Top
    • A candlestick charting three Buddha
    • top is the same as the Western head and shoulders top. In Japanese candlestick
    • terms, the three Buddha top is a three mountain top in which the central
    • moun­tain is the tallest. 
    • Three Crows
    • Three relatively long consecutive
    • black candles that close near or on their lows. It is a top candlestick reversal
    • pattern at a high-price level or after an extended rally.
    • Tower Top
    • Comprised of one or more tall white candles followed by
    • congestion and then one or more long black candlesticks. 
    • Belt Hold Line Bullish Pattern
    • A bullish belt-hold is a tall white
    • candlestick that opens on, or near, its low and closes well above the opening
    • price. It is also called a white opening shaven bottom.
    • Hammer Pattern
    • An important bottoming candlestick
    • charting pattern. The hammer and the hanging man are both the same lines that
    • are generally called umbrella lines; that is, a small real body (white or black)
    • at the top of the session's range and a very long lower shadow with little or no
    • upper shadow. When this line appears during a downtrend, it becomes a bullish
    • hammer. For a classic hammer, the lower shadow should be at least twice the
    • height of the real body when candlestick trading.
    • Inverted Hammer Pattern
    • Following a downtrend, this is a
    • Japanese candlestick line that has a long upper shadow and a small real body at
    • the lower end of the session. There should be no, or very little, lower shadow.
    • It has the same shape as the bearish shooting star, but when this line occurs in
    • a downtrend, it is a bullish bottom reversal signal with confirmation the next
    • session when candlestick trading (i.e., a candlestick with a higher open and
    • especially a higher close compared to the inverted hammer's close).
    • Bullish Engulfing Pattern
    • A bullish engulfing candlestick
    • pattern is comprised of a large white real body that engulfs a small black real
    • body in a downtrend. 
    • Counterattack Lines
    • Following a black candlestick in a downtrend the market gaps
    • sharply lower on the opening and then closes unchanged from the prior session’s
    • close. 
    • Gapping Play Rising
    • High-price gapping play—After a
    • sharp advance, the market consolidates via a series of small real bodies near
    • the recent highs. If prices gap above this consolidation area, it becomes a
    • high-price gapping play.
    • Harami Bullish
    • A two-candlestick charting pattern in which a small real body
    • holds within the prior session’s unusually large black body. The color of the
    • second real body can be white or black. 
    • Harami Cross Bullish
    • A two-candlestick charting pattern in which a doji real body
    • holds within the prior session’s unusually large black real body. 
    • Piercing Pattern
    • A Japanese candlestick bottom
    • reversal signal. In a downtrend, a long black candlestick is followed by a gap
    • lower open during the next session. This session finishes as a strong white
    • candlestick that closes more than halfway into the prior black candlestick's
    • real body. Compare to the on-neck line, the in-neck line, and the thrusting
    • line.
    • Rising Window
    • The same as a Western gap. Windows
    • are continuation candlestick patterns. When the market opens a window to the
    • upside, it is a rising window. It is a bullish candlestick pattern and the
    • rising window should be support.
    • Seperating Line Bullish
    • When the market opens at the same opening as the previous
    • session’s black candle and then closes higher as a white candle. 
    • Side by Side White Line Bullish
    • Two consecutive white candlesticks
    • that have the same open and whose real bodies are about the same size. In an
    • uptrend, if these side-by-side white lines gap higher, it is a bullish
    • continuation candlestick pattern. In a downtrend, on Japanese candlestick charts
    • these side-by-side white lines are still considered bearish (in spite of their
    • white candles since they come after a falling gap).
    • Tasuki Gap Bullish
    • The bullish gapping tasuki is made of a rising window formed
    • by a white candlestick and then a black candlestick. The black candle opens
    • within the white real body and closes under the white candlestick’s real body.
    • The last two candlesticks of the tasuki should be about the same size. 
    • Tweezer Bottom
    • When the same lows are tested on back-to-back sessions.
    • Abandoned Baby Bottom
    • When the same lows are tested on back-to-back sessions. 
    • Frying Pan Bottom
    • This Japanese candlestick pattern is
    • similar to a Western rounding bottom. A win­dow to the upside confirms this
    • pattern. It is the counterpart of the dumpling top.
    • Morning Star
    • A bottom reversal pattern formed by
    • three candlesticks. The first is a long black real body, the second is a small
    • real body (white or black) that gaps lower to form a star, and the third is a
    • white candlestick that closes well into the first session's black real body. Its
    • opposite is the evening star candlestick pattern.
    • Rising Three
    • The rising three methods is a
    • bullish continuation pattern. A tall white candlestick precedes three small,
    • usually black, real bodies that hold within the white candlestick's range. The
    • forth line of this pattern is a strong white candlestick that closes at a new
    • high for the move.
    • Three Buddha Bottom
    • An inverted three Buddha (Three
    • Buddha Bottom) is the same as the Western inverted head and shoulders. In
    • Japanese charting terminology, it is a three river bottom in which the middle
    • river is the longest.
    • Three White Soldiers
    • This is a candlestick charting
    • pattern is a group of three white candlesticks with consecutively higher closes
    • (with each closing near the highs of the session). These three white candles
    • presage more strength if they appear after a period of stable prices or at a low
    • price area. Also called Three Advancing Soldiers.
    • Tower Bottom
    • Comprised of one or more long black candles followed by
    • congestion and then one or more long white candlesticks. 
    • Doji
    • A session in which the open and
    • close on a Japanese candlestick are the same (or almost the same). There are
    • different varieties of doji lines (gravestone, dragonfly, and long-legged doji)
    • depending on where the opening and closing are in relation to the entire range.
    • Doji lines are among the most important individual candlestick patterns. They
    • are also components of candlestick patterns. Northern doji are doji that appear
    • during a rally. Southern doji are doji during declines.
    • High Waves
    • A candlestick with very long upper
    • and lower shadows and a small real body on a Japanese candlestick chart. It
    • shows that the market is losing its direction bias that it had before this
    • candle appeared. If the real body is a doji instead of a small real body, it is
    • a long-legged doji.
    • Spinning Tops
    • The Japanese candlestick charting nickname for candle lines
    • with small real bodies. 
    • Stars Neutral
    • A small real body (white or black)
    • that gaps away from the large real body preceding it. A star in a downtrend has
    • the Japanese candlestick charting nickname raindrop.

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