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Candlestick Pattern Dictionary

  • Abandoned Baby: Abandoned Baby Candlestick example image from StockCharts.comA rare reversal pattern characterized by a gap followed by a Doji, which is then followed by another gap in the opposite direction. The shadows on the Doji must completely gap below or above the shadows of the first and third day.
  • Dark Cloud Cover: Dark Cloud Cover Candlestick example image from StockCharts.comA bearish reversal pattern that continues the uptrend with a long white body. The next day opens at a new high then closes below the midpoint of the body of the first day.
  • Doji: Doji Candlestick example image from StockCharts.comDoji form when a security’s open and close are virtually equal. The length of the upper and lower shadows can vary, and the resulting candlestick looks like, either, a cross, inverted cross, or plus sign. Doji convey a sense of indecision or tug-of-war between buyers and sellers. Prices move above and below the opening level during the session, but close at or near the opening level.
  • Downside Tasuki Gap: Downside Tasuki Gap Candlestick example image from StockCharts.comA continuation pattern with a long, black body followed by another black body that has gapped below the first one. The third day is white and opens within the body of the second day, then closes in the gap between the first two days, but does not close the gap. (more…)
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