candle sticks

A short day represents a small price move from open to close where the length of the candle body is short.

A bullish continuation pattern in which a long white body is followed by three small body days each fully contained within the range of the high and low of the first day. The fifth day closes at a new high

A bullish two day reversal pattern. The first day in a downtrend is a long black day. The next day opens at a new low then closes above the midpoint of the body of the first day

Candlesticks with a long upper shadow and short lower shadow indicate that buyers dominated during the first part of the session bidding prices higher. Conversely candlesticks with long lower shadows and short upper shadows indicate that sellers dominated during the first part of the session driving prices lower

This candlestick has long upper and lower shadows with the Doji in the middle of the day's trading range clearly reflecting the indecision of traders

A long day represents a large price move from open to close where the length of the candle body is long.

Definition

This is a five candlestick pattern that starts with three strong white candlesticks. The uptrend continues with the fourth higher close. The next day gaps lower and closes much lower than the previous day or two. This may imply a bearish reversal.

Recognition Criteria

1. The market is characterized by a prevailing uptrend.
2. Three strong white candlesticks occur much like the Three White Soldiers pattern.
3. The fourth white candlestick closes also higher but has a long lower shadow.
4. The fifth day is a strong black with an open below the previous day

Definition

This is not a standard candlestick pattern. It is simply the stop loss compliment of all the confirmed bearish patterns. The conditions for the activation of the Bullish stop loss are two consecutive highs or a close above the stop loss level of a recently confirmed bearish pattern.

Recognition Criteria

1. A bearish pattern is detected and its confirmation and stop loss levels are established.
2. The pattern then is confirmed and a SELL or SHORT signal is issued.
3. Prices either close once above the stop loss level or test highs above the stop loss level in two consecutive days.
4. The Bullish stop loss is triggered.

Pattern Requirements and Flexibility

All bearish candlesticks are accompanied by a specific stop loss level which becomes active when the pattern is confirmed. A bearish confirmation consequently may lead to a bearish signal such as a SELL or SHORT signal. Following the bearish signal if prices go up instead of going down and close or make two consecutive daily highs above the stop loss level while no bullish pattern is detected then the stop loss is triggered. Once triggered the stop loss level of the recently confirmed bearish pattern starts acting as the confirmation level of a bullish pattern itself. The system then seeks a bullish confirmation to issue a BUY signal. Prices must cross above the stop loss level for the bullish confirmation of the triggered stop loss.

Trader

Definition

This pattern is a made up of three candlesticks. The black candlesticks of the second and third day represent the two crows that perched on the first white candlestick. Recognition Criteria

1. The market is characterized by a prevailing uptrend. 2. A strong white candlestick appears on the first day. 3. The second day is a black candlestick that gaps up. 4. On the last day another black candlestick appears that opens inside the body of the second day and then closes inside the body of the first day.

Pattern Requirements and Flexibility

The Bearish Two Crows should start with a strong white body. A black body that forms an upside body gap with the first candlestick follows. The third day is another black body that opens at or above the close of the second day. The third day should close within the body limits of the first day.

Trader

Definition

This pattern is a small white body contained by a prior relatively long white body. It resembles the Harami pattern except that both bodies are white. Recognition Criteria

1. The market is characterized by a prevailing uptrend.
2. A white body is observed on the first day.
3. On the second day we again see a white body which is completely engulfed by the body of the first day.
Pattern Requirements and Flexibility

The Bearish Descending hawk consists of two white candlesticks in which the first day