Flashcards in Japanese Candelstick Deck (47)
If the close is above the open, then?
a hollow candlestick (usually displayed as white) is drawn.
If the close is below the open, then?
a filled candlestick (usually displayed as black) is drawn.
The hollow or filled section of the candlestick is called the?
“real body” or body.
The thin lines poking above and below the body display the?
high/low range and are called shadows.
The top of the upper shadow is the?
The bottom of the lower shadow is?
The longer the white candlestick, the further the?
close is above the open.
The longer the black Japanese candlestick, the?
further the close is below the open.
Upper shadows signify the sessions?
Lower shadows signify the sessions?
If a Japanese candlestick has a long upper shadow and short lower shadow, this means that?
buyers flexed their muscles and bid prices higher.
If a Japanese candlestick has a long lower shadow and short upper shadow, this means that?
sellers flashed their washboard abs and forced price lower. But for one reason or another, buyers came in and drove prices back up to end the session back near its open price.
Japanese candlesticks with a long upper shadow, long lower shadow and small real bodies are called?
A spinning top indicates?
indecision between the buyers and sellers.
If a spinning top forms during an uptrend, this usually means there aren’t many?
buyers left and a possible reversal in direction could occur.
If a spinning top forms during a downtrend, this usually means there aren’t many?
sellers left and a possible reversal in direction could occur.
Marubozu means there are?
no shadows from the bodies.
A White Marubozu contains a long white body with no shadows. The open price equals?
the low price and the close price equals the high price.
The White Marubozu is a very bullish candle as it shows that?
buyers were in control the entire session. It usually becomes the first part of a bullish continuation or a bullish reversal pattern.
A Black Marubozu contains a long black body with no shadows. The open equals?
the high and the close equals the low.
A Black Marubozu is a very bearish candle as it shows that sellers?
controlled the price action the entire session. It usually implies bearish continuation or bearish reversal.
Doji candlesticks have the same?
open and close price or at least their bodies are extremely short. A doji should have a very small body that appears as a thin line.
What are the four types of Doji's?
the Long-Legged Doji, Dragonfly, Gravestone, Four Price.
If a Doji forms after a series of candlesticks with long hollow bodies (like White Marubozus), the Doji signals that the?
buyers are becoming exhausted and weakening.
If a Doji forms after a series of candlesticks with long filled bodies (like Black Marubozus), the Doji signals that?
sellers are becoming exhausted and weak.
Hammer and Hanging Man both have?
long lower shadows, and short or absent upper shadows.
The hammer is a?
bullish reversal pattern that forms during a downtrend. It is named because the market is hammering out a bottom.
When price is falling, hammers signal that the?
bottom is near and price will start rising again.
What is the recognition criteria for Hammer?
The long shadow is about two or three times of the real body. Little or no upper shadow. The real body is at the upper end of the trading range. The color of the real body is not important.
The hanging man is a?
bearish reversal pattern that can also mark a top or strong resistance level.
When price is rising, the formation of a hanging man indicates that?
sellers are beginning to outnumber buyers.
What is the recognition criteria for the hanging man?
A long lower shadow which is about two or three times of the real body. Little or no upper shadow. The real body is at the upper end of the trading range. The color of the body is not important, though a black body is more bearish than a white body.
An inverted hammer is a?
bullish reversal candlestick.
A shooting star is a?
bearish reversal candlestick.
The inverted hammer occurs when?
price has been falling suggests the possibility of a reversal. Its long upper shadow shows that buyers tried to bid the price higher.
The shooting star is a bearish reversal pattern that looks identical to the inverted hammer but occurs when?
price has been rising.
The bullish engulfing pattern is a two candlestick pattern that
signals a strong up move may be coming. It happens when a bearish candle is immediately followed by a larger bullish candle
The bearish engulfing pattern is the opposite of the bullish pattern. This type of candlestick pattern occurs when?
the bullish candle is immediately followed by a bearish candle that completely “engulfs” it.
The tweezers are dual candlestick reversal patterns. This type of candlestick pattern are usually be spotted after an?
extended uptrend or downtrend, indicating that a reversal will soon occur. Notice how the candlestick formation looks just like a pair of tweezers!
The morning star and the evening star are triple candlestick patterns that you can usually find at?
the end of a trend.
The three white soldiers pattern is formed when?
three long bullish candles follow a DOWNTREND, signaling a reversal has occurred.
The three black crows candlestick pattern is just the opposite of the three white soldiers. It is formed when?
three bearish candles follow a strong UPTREND, indicating that a reversal is in the works. The second candle’s body should be bigger than the first candle and should close at or very near its low.
Finally, the third candle should be the same size or larger than the second candle’s body with a very short or no lower shadow.
The three inside up candlestick formation is a trend-reversal pattern that is found?
at the bottom of a DOWNTREND.
The three inside up triple candlestick pattern indicates that the?
downtrend is possibly over and that a new uptrend has started.
For a valid three inside up candlestick formation, look for?
The first candle should be found at the bottom of a downtrend and is characterized by a long bearish candlestick. The second candle should at least make it up all the way up to the midpoint of the first candle. The third candlestick needs to close above the first candle’s high to confirm that buyers have overpowered the strength of the downtrend.
the three inside down candlestick formation is found at the top of an UPTREND It means that the?
uptrend is possibly over and that a new downtrend has started.