Different shapes of the candlesticks

Typical candlesticks & Marubozu


Hammer and Hanging Man & Shooting Star

High Wave & Engulfing Pattern

Dark Cloud Cover

Piercing Line


Morning and Evening Star and Abandoned Baby


Combination of CandleSticks:

Candlesticks are important signals individually. However combination of candlesticks can also generate very strong reversal signals.

1. High Wave

A group of candlesticks that have small bodies and long shadows are called High Wave. High Wave is a very strong reversal signal at the top of an uptrend or bottom of a downtrend.

2. Engulfing Pattern

This pattern is a very strong reversal signal at the end of a trends. Engulfing pattern is formed by two candlesticks with different colors. The body of the second candlestick should completely engulf the first one. The shadows may also be engulfed but it is not necessary. The first candlestick can also be a Doji.

Engulfing pattern is stronger when the first candlestick has a small and the second candlestick has a big body. Also when the second candlestick engulfs more than one candlestick, the pattern is stronger.

( From The Language of Japanese CandleSticks - The Only Real Time Indicators)


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