Marubozu

On a Japanese Candlestick chart, a Marubozu is a single candlestick with no shadow or wick extending from the body at at the open or close. Also known as a shaven or bald candlestick. The black Marubozu has a long black body and no shadow/wick. The open is the high and the close is the …

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Four Price Doji Japanese Candlestick

The Four Price Doji Japanese Candlestick has no upper or lower wick, and the open and the close are at the same price – this candlestick looks like a flat line.

Stick Sandwich

The Stick Sandwich is a three candle bullish reversal formation. The pattern occurs in a downtrend, where the first candle is black and the second candle is white and trades above the close of the first day. The third candle is black and closes where the first candle did.

Sakata’s Five Methods

Named after Munehisa Homma‘s hometown in Yamagata Prefecture, Japan, Sakata’s Five Methods comprise the following patterns: Three Mountains Pattern, Three Rivers Pattern, Three Parallel Lines Pattern and the Three Methods Pattern. These patterns created the foundation for Homma’s Japanese Candlestick analysis.

Long White Body

The long white (or green) bodied Japanese Candlestick is a bullish reversal signal, consisting of a single white candlestick. The long white body shows aggressive buying and that the close is significantly above the open.

Efficient Market Hypothesis

Efficient Market Hypothesis maintains that prices move in a random fashion  around the intrinsic value of the underlying asset. According to the efficient market hypothesis, the optimal trading strategy is to buy and hold, rather than trying to time market movements through technical analysis.

ECN

Electronic Communications Network, frequently used for creating electronic stock or futures markets. Electronic Communications Networks, or ECNs, are electronic trading systems that automatically match buy and sell orders at specified prices.

Shooting Star

The Shooting Star Japanese Candlestick is a bearish single candle pattern that appears during an uptrend. It opens higher, trades still higher, creating a long upper shadow. It then closes near its open, leaving little or no lower shadow, and a small real body.