17 Money Making Candle Formations (2008).pdf

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17 Money Making
Candlestick Formations
} Real
Body
Lower
Shadow
Candlestick Line
Candlestick lines and charts -- tra-
ditional Japanese charts whose
individual lines look like candles,
hence their name. The candle-
stick line is comprised of a real
body and shadows. See "Real
body" and "shadow. "
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Upper
Shadow
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17 Money Making
Candlestick Formations
Bullish Bearish
Belt Hold Lines
Belt-hold line -- there are bullish and bear-
ish belt holds. A bullish belt hold is a tall
white candlestick that opens on its low. It is
also called a white opening shaven bottom .
At a low price area, this is a bullish signal. A
bearish belt hold is a long black candlestick
which opens on its high. Also referred to as
a black opening shaven head . At a high
price level, it is considered bearish.
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17 Money Making
Candlestick Formations
Bullish Bearish
Counterattack Lines
Counterattack lines -- following a black
(white) candlestick in a downtrend (up-
trend), the market gaps sharply lower
(higher) on the opening and then closes
unchanged from the prior session's close.
A pattern which reflects a stalemate be-
tween the bulls and bears.
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17 Money Making
Candlestick Formations
Dark-Cloud Cover
Dark-cloud cover -- a bearish reversal sig-
nal. In an uptrend a long white candlestick
is followed by a black candlestick that
opens above the prior white candlestick's
high. It then closes well into the white
candlestick's real body.
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