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Lond day

When the open and close are close to the high and low, and the open and close are a long way apart we have a long candle.

Long white candles appear when the price goes up.

And the long black candle appears when the price goes down

Short day

Short candles appear in low volatility periods.

Spinning top

These are similar to short candles but have longer tails.

There is a big difference between the high and low price, and a small distance between the open and close price.

These tell us that investors aren’t sure of the market price.

 

Piercing line

This is a bullish reversal pattern which is composed of a long black body followed by a white body.

The piercing line appears in a down trend. It tells us the market opened lower on opening and closes above the mid-point of the prior body.


Marubuzo

This pattern appears when the open and close are the same as the high and low.

A white marubuzo is a bullish signal and is the first pattern of continuation of an up trend, or the first in a reversal after a long running up trend.

 

Dark cloud cover

Is a reversal pattern, and it appears at the end of an up trend. It is a long hollowed of white candle followed by a dark of black bodied candle.

The close price of the black candle will fall below the midpoint of the white candle.

   
   
   
   
 
 

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