Common Terminologies and Reversal Pattern Used in Candlestick Charts (Part 1)

Here are some of the terminologies used in Japanese candlestick:

The White Candlestick

This candlestick represents that the price at which the currency pair closed is higher than the price at which it opened which means a bull.

The Black Candlestick

Black candlestick represents that the closing price is lower than the opening one.

The Shaven Bottom

You must have seen shadows at the top and bottom side of the candle. A missing wick at the bottom side is called a shaven bottom.

The Shaven Head

When the upper shadow of the candle is missing, it is known as a candle with a shaven head.

Spinning tops

These candlesticks have a very small real body usually with long shadows. These candlesticks are a representation of an equilibrium between bull and bear market. The body can be either white or black.

Doji Lines

Sometimes while analyzing a chart, you may see the straight line with a horizontal line cutting it. This means the opening and the closing price are almost same or very close to each other. However, the length of the shadow may vary.

 

Common Terminologies and Reversal Pattern Used in Candlestick Charts (Part 2)…...>>>

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