-
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.
-
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.
-
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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