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SHORT BLACK LINE
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| This candle is
created when the close is less than the open with a less than
average range. The close should be equal or less than the low
and the close should be equal to or greater than the high. |
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Candlestick signal: Moderate
candle.
Proper action: Look
at pattern, this candle could form into a star if gapped above
or below prior candle.
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BLACK SPINNING TOP
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| This candle is
created when the close is less than the open with a less than
average range. The open should be about one third less than the
high and the close should be about one third greater than the
low. |
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Candlestick signal: Uncertain
direction.
Proper action: Look
at pattern, this candle could form into a star if gapped above
or below prior candle.
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BLACK LOWER SHADOW
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| This candle is
created when the close is less than the open during an average
or large range. The open must be equal to, or no less than 5% of
the high. The lower shadow must be at least equal to the length
of the body. |
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Candlestick signal: Moderate
candle.
Proper action: Look
at pattern, this candle could form into a star if gapped above
or below prior candle.
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BLACK UPPER SHADOW
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| This candle is
created when the close is less than the open during an average
or large range. The close must be equal to or no greater than 5%
from the low. The upper shadow must be at least equal to the
length of the body. |
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Candlestick signal: Moderate
candle.
Proper action: Look
at pattern, this candle could form into a star if gapped above
or below prior candle.
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BLACK UMBRELLA LINE
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| This candle is
created when the close is less than the open during an average
or large range. The open must be equal to or no more than 5%
more than the high and the lower shadow must be at least twice
the length of the body. This formation is called a hammer if it
occurs at the bottom of the market or hanging man if it is found
at the top. It can be recognized by the fairly tight opening and
closing ranges. |
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Candlestick signal: This
candle is called a hangman or a hammer, a strong candle. Use if
it’s part of an advanced pattern
Proper action: Wait
for confirmation if no advanced pattern is found.
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LONG BLACK LINE
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| This candle is
created when the close is less than the open during a much
greater than average range. The close must be near to but not
equal to the low and the open must be near to but not equal to
the high. |
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Candlestick signal: Ideal
if found in a bearish continuation pattern.
Proper action: Excellent
candle if found with engulfing bearish or dark cloud cover
advanced pattern.
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LONG "MARUBUZO"
BLACK LINE
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| This candle is
created when the close is less than the open during a much
greater average range. The close must be equal to the low and
the open must be equal to the high. |
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Candlestick signal: Ideal
if found with bearish continuation pattern. Strongest black
line.
Proper action: Excellent
candle if found with engulfing bearish or dark cloud.
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INVERTED BLACK HAMMER
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| This candle is
created when the close is less than the open during a much
greater average range. This candle is characterized by a tight
opening and closing range, found at or near the bottom of the
candle. |
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Candlestick signal: This
candle is called a shooting star or inverted hammer, a very
strong candle, use if it’s a part of an advanced pattern.
Proper action: This
candle can issue a buy or sell signal if you have a confirming
candle at the following day. Wait for confirmation signal.
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LONG "OPENING BOZU"
BLACK LINE
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| This candle is
created when the close is less than the open during a much
greater average range. The close must be near to but not equal
to the low and the open must be equal to the high. |
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Candlestick signal: This
candle is called a shooting star or inverted hammer, a very
strong candle, use if it’s a part of an advanced pattern.
Proper action: This
candle can issue a buy or sell signal if you have a confirming
candle at the following day. Wait for confirmation signal.
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LONG "CLOSING BOZU"
BLACK LINE
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| This candle is
created when the close is less than the open during a much
greater average range. The close must be equal to the low and
the open must be near to but not equal to the high. |
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Candlestick signal: Ideal
if found with bearish continuation pattern. Strong black line.
Proper action: Excellent
candle if found with engulfing bearish or dark cloud. Also
called a belt hold line.
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