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Candlestick Patterns for Day Trading
Japanese rice traders developed candlesticks centuries agoto visually display price activity over a defined tradingperiod. Each candlestick represents the trading activity forone period. The lines of a candlestick represent the opening,high, low and closing values for the period.
The main body (the wide part) of the candlestick representsthe range between the opening and closing prices. If theclosing price is higher than the opening price, the mainbody is white. If the closing price is lower than the openingprice, the main body is black.The lines protruding from either end are called wicks orshadows.
A long black body followed byseveral small bodys and ending inanother long black body. The smallbodys are usually contained withinthe first black body's range.
A bearish continuation pattern.
A very large white body followed by asmall black body that is contained withinthe previous bar.
A bearish pattern when preceded by anuptrend.
Bearish Harami Cross
A Doji contained within a large whitebody.
A top reversal signal.