Abandoned Baby

An unusual reversal pattern on a Japanese Candlestick chart defined by a gap followed by a Doji, followed by another gap in the opposite direction. The shadows on the Doji have to completely gap above or below the shadows of the first and third day. See Bullish Abandoned Baby

Harami Japanese Candlestick

On a Japanese Candlestick chart, a two day reversal pattern that has a small body day completely contained within vertical range of the previous larger candle’s body. This formation suggest that the previous trend is coming to an end. The smaller the second candlestick, the stronger the reversal signal. See: Bullish Harami

Harami Cross Japanese Candlestick

On a Japanese Candlestick chart, a two day reversal pattern that is the same as the Harami, except that the second day is a Doji. See Bullish Harami Cross

Hanging Man Japanese Candlestick

On a Japanese Candlestick chart, the Hanging Man candlestick occurs when a security moves significantly lower after the open, but rebounds to close well above the intraday low. The Hammer and Hanging Man are short body candles with little or no upper shadow or wick, and a lower shadow at lease twice the height of …

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Dark Cloud Cover

On a Japanese Candlestick chart, Dark Cloud Cover is a bearish reversal pattern consisting of a black candlestick that follows a long bodied white candlestick during an uptrend. The long bodied black candle casts an ominous dark cloud over the preceding upward trend in price. The black candlestick opens at a new high and closes below …

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Hammer Japanese Candlestick

The Hammer is a bullish reversal candlestick. Hammer candlesticks occur when price moves significantly lower after the open, but rebounds to close well above the low. In a perfect hammer, this tail is twice the length of the body and the candlestick will have no upper shadow or wick. The smaller the body and the …

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Long Red Candlestick Play Instructions

Step 1 – Look for a LONG RED CANDLESTICK resting on MINOR PRICE SUPPORT and also a rising MAJOR MOVING AVERAGE (10 MA, 20 MA or 50 MA). Step 2 – Pull up a 5 minute chart of the stock. Step 3 – Note the opening price of the stock. If the stock gaps up …

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Candle Charting Basics Spotting the Early Reversal Signals

Bio: Steve Nison, the first to reveal the power of candlesticks, has taught the top professional traders from nearly every major investment firm from 19 countries. His work has been highlighted in the financial media, including the Wall Street Journal, Worth Magazine, and Barron’s. Mr. Nison is the author of three books including Japanese Candlestick …

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