CANDLE STICK PATTERNS
Abandoned Baby:
A rare reversal pattern characterized by
a gap followed by a Doji, which is then followed by another gap in the opposite
direction. The shadows on the Doji must completely gap below or above the
shadows of the first and third day.
Dark Cloud Cover:
A bearish reversal pattern that
continues the uptrend with a long white body. The next day opens at a new high
then closes below the midpoint of the body of the first day.
Doji:
Doji form when a security's open and close are
virtually equal. The length of the upper and lower shadows can vary, and the
resulting candlestick looks like, either, a cross, inverted cross, or plus sign.
Doji convey a sense of indecision or tug-of-war between buyers and sellers. Prices
move above and below the opening level during the session, but close at or near
the opening level.
Downside Tasuki Gap:
A continuation pattern with a long,
black body followed by another black body that has gapped below the first one. The
third day is white and opens within the body of the second day, then closes in
the gap between the first two days, but does not close the gap.
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