The Major Signals

DOJI Recognition: The open and close are the same or very close to the same.

Pattern Psychology: The Bulls and the Bears are conflicting. This is an alert to investors to take heed for possible trend reversal.

Related Articles: How To Trade the Doji Signal, The Dynamic Doji

Training Tutorial: Dynamic Doji

View Current Charts & Lists of Stocks for Doji Stock Screens

BULLISH ENGULFING Recognition: The body of the second day completely engulfs the body of the first day. Shadows are not a consideration.

Pattern Psychology: This pattern suggests the Bulls are stepping in with force, suggesting prices will move up.

Related Articles: How to Trade the Bullish Engulfing Signal, Candlestick Engulfing Patterns

Training Tutorial: Bullish Engulfing

View Current Charts & Lists of Stocks for Bullish Engulfing Stock Screens

BEARISH ENGULFING

Recognition: The body of the second day completely engulfs the body of the first day. Shadows are not a consideration.

Pattern Psychology: This shows the Bears are overwhelming the Bulls, suggesting prices will move down.

Related Articles: How to Trade the Bearish Engulfing Signal, Candlestick Engulfing Patterns

Training Tutorial: Bearish Engulfing

View Current Charts & Lists of Stocks for

HAMMERS and HANGING-MAN

Recognition: The lower shadow (or tail) should be at least two times the length of the body. The color of the body is not important although a black body has slightly more Bearish indications and a white body has slightly more Bullish indications.

Pattern Psychology: This pattern at the bottom of a down trend is called a Hammer. This pattern at the top of an uptrend is called a Hanging-Man

Related Articles: How to Trade The Hammer Signal, How to Trade the Hanging Man

Training Tutorials: Hammer, Inverted Hammer, Hanging Man

PIERCING PATTERN

Recognition: A two candle pattern, the body of the first candle is black and the body of the second candle is white. The white day opens lower, under the trading range of the previous day. The price closes above the 50% level of the black body.

Pattern Psychology: After a strong downtrend, the atmosphere is Bearish but before the end of the day the Bulls step in and price closes near the high of the day.

Related Articles: How to Trade the Piercing Pattern

Training Tutorial: Piercing Pattern

DARK CLOUD

Recognition: A two candle pattern, the body of the first candle is white and the body of the second candle is black. The black day opens higher, above the trading range of the previous day. The price closes below the 50% level of the white body.

Pattern Psychology: After a strong uptrend, the atmosphere is Bullish but before the end of the day the Bears step in and price closes near the low of the day.

Related Article: Stock Trading Methods

How to Trade the Dark Cloud Signal

Training Tutorial: Dark Cloud Cover

BULLISH HARAMI

Recognition: A two candle pattern forming in a down trending price pattern. The body of the first candle is the same color as the current trend and should be a long black candle. The body of the second candle is white and opens and closes within the body of previous day's candle.

Pattern Psychology: After a strong downtrend the Bulls step in and open the price higher than the previous day's close. This concerns the Bears and the shorts start covering their postions. A strong day after that would convince everybody that the trend may be in a reversal.

Related Articles: How to Trade the Bullish Harami

The Harami - A High Profit Candlestick Signal

Training Tutorial - Harami Pattern

BEARISH HARAMI

Recognition: A two candle pattern forming in an uptrending price pattern. The body of the first candle is the same color as the current trend and should be a long white candle. The body of the second candle is black and opens and closes within the body of the previous day's candle.

Pattern Psychology: After a strong uptrend the Bears step in and open the price lower than the previous day's close. The price finishes lower for the day and the Bulls are concerned and begin taking their profits.

Related Articles: How to Trade The Bearish Harami The Harami - A High Profit Candlestick Signal

Training Tutorial: Harami Pattern

MORNING STAR

Recognition: A three candle pattern at the bottom of a downtrend.The body of the first candle is black, confirming the current downtrend. The second candle is an indecisive formation. The third candle is white and should close at least halfway up the black candle.

Pattern Psychology: After an apparant downtrend the Bulls step in and open the price higher than the previous day's close. The price finishes higher for the day and the Bears are concerned and begin covering their short positions.

Related Articles: How to Trade the Morning Star Signal

Morning Star Reversal Signal

Training Tutorial: Morning Star & Evening Star Signals

EVENING STAR

Recognition: A three candle pattern at the top of an uptrend. The body of the first candle is white, confirming the current uptrend. The second candle is an indecisive formation. The third candle is black and should close at least halfway down the white candle.

Pattern Psychology: After an apparant uptrend the Bears step in and open the price lower than the previous day's open. The price finishes lower for the day and the Bulls are concerned and begin selling to take their profits.

Related Articles: How to Trade the Evening Star Signal

Swing Trading with an Evening Star Signal

Training Tutorial: Morning Star & Evening Star Signals

Kicker Signals Bearish and Bullish

Recognition: The first day's open and the second day's open are the same BUT the price movement is in opposite directions.

Pattern Psychology: The Kicker Signal demonstrates a dramatic change in investor sentiment. The longer the candles, the more dramatic the price reversal.

Related Articles: What is the Strongest Candlestick Signal - The Kicker!, Technical Analysis that Produces Big Profits

Training Tutorial: Kicker Signals

SHOOTING STAR

Recognition: One candle pattern appearing in an uptrend. The shadow (or tail) should be at least two times the length of the body. The color of the body is not important, although a black body has slightly more Bearish indications.

Pattern Psychology: After a strong uptrend the Bulls appear to still be in control with price opening higher, but by the end of the day the Bears step in and take the price back down to the lower end of the trading range. Lower trading the next day reinforces the probability of a pullback.

Related Articles: How to Trade the Shooting Star Signal

Training Tutorial: The Shooting Star

Inverted Hammer

Recognition: The upper shadow should be at least two times the length of the body. The real body is at the lower end of the trading range. There should be no lower shadow or a very small lower shadow.

Pattern Psychology: After a downtrend has been in effect, the atmosphere is Bearish. The price opens and trades lower but before the end of the day, The Bulls step in and take the price back up. A higher open or a white candle the next day reinforces buying.

Related Articles: Technical Analysis Simplified, How to Trade the Inverted Hammer

Training Tutorial: The Inverted Hammer

There are really only 12 major Candlestick patterns that need to be committed to memory. The Japanese Candlestick trading signals consist of approximately 40 reversal and continuation patterns. All have credible probabilities of indicating correct future direction of a price move. The following dozen signals illustrate the major signals. The definition of "major" has two functions. Major in the sense that they occur in price movements often enough to be beneficial in producing a ready supply of profitable trades as well as clearly indicating price reversals with strength enough to warrant placing trades. Utilizing just the major Japanese Candlesticks trading signals will provide more

than enough trade situations for most investors. They are the signals that investors should contribute most of their time and effort. However, this does not mean that the remaining patterns should not be considered. Those signals are extremely effective for producing profits. Reality demonstrates that some of them occur very rarely. Other formations, although they reveal high potential reversals, may not be considered as strong a signal as the major signals. Below is the summary of the major candlestick formations and their definitions. For free print version of signal, with pattern recognition and trading psychology Click Here Additionally, clicking on any of the individual signals will take you to the specific trading criteria plus signal enhancements and pattern recognition for printout.

A Doji is formed when the open and the close are the same or very close. The length of the shadows are not important. The Japanese interpretation is that the bulls and the bears are conflicting. The appearance of a Doji should alert the investor of major indecision.

The Gravestone Doji is formed when the open and the close occur at the low of the day. It is found occasionally at market bottoms, but it's forte is calling market tops. The name, Gravestone Doji, is derived by the formation of the signal looking like a gravestone.

The Long-legged Doji has one or two very long shadows. Longlegged Doji's are often signs of market tops. If the open and the close are in the center of the session's trading range, the signal is

referred to as a Rickshaw Man. . The Japanese believe these signals to mean that the trend has "lost it's sense of direction." 0

The Bullish Engulfing Pattern is formed at the end of a downtrend. A white body is formed that opens lower and closes higher than the black candle open and close from the previous day. This complete engulfing of the previous day's body represents overwhelming buying pressure dissipating the selling pressure.

Stock Investing Basics of Japanese Candlesticks
Candlestick trading analysis does not require knowing intricate formulas or ratios. Candlestick analysis does not require massive amounts of education to effectively utilize the signals. The stock investing basics of Japanese Candlesticks result in clear and easy to identify patterns that demonstrate highly accurate turns in investor sentiment. The average investor does not have to be dependent on the investment professional, a professional whose recommendation does not always have your interest at the forefront. Whether totally unfamiliar with investment concepts or very sophisticated in investment experience, the Japanese Candlestick trading formations are easily utilized. The signals and patterns are easy to see. As illustrated, a stock price closing higher than where it opened will produce a white

candle. A stock price closing lower than where it opened creates a black candle. The boxes formed are called "the body". The extremes of the daily price movement, represented by lines extending from the body, are called "shadows or tails." A stock price closing where it opened or very close to where it opened is called a doji." A hollow candle forms when the stock closes higher than its opening price.

A solid (or filled) candle forms when the stock closes lower than its opening price. Memorizing the Japanese Candlesticks names and descriptions of the candlestick trading formations is not necessary for successful trading. Reading about the Japanese Candlesticks signals is interesting and it aids in remembering them. The Candlestick Forum is the foremost aid in learning how to use the Japanese Candlestick trading signals correctly. Stephen W. Bigalow has studied, analyzed and developed simple methods for profiting from the signals. His published book, PROFITABLE CANDLESTICK TRADING: PINPOINTING MARKET OPPORTUNITIES TO MAXIMIZE PROFITS, incorporates the common sense, logical disciplines that most investors are aware of but ignore. For more information on the book that will revolutionize your investment perceptions: Profitable Candlestick Trading: Pinpointing Market Opportunities to The Major Signals
DOJI Recognition: The open and close are the same or very close to the same.

Pattern Psychology: The Bulls and the Bears are conflicting. This is an alert to investors to take heed for possible trend reversal. Related Articles: How To Trade the Doji Signal, The Dynamic Doji Training Tutorial: Dynamic Doji View Current Charts & Lists of Stocks for Doji Stock Screens

BULLISH ENGULFING Recognition: The body of the second day completely engulfs the body of the first day. Shadows are not a consideration. Pattern Psychology: This pattern suggests the Bulls are stepping in with force, suggesting prices will move up. Related Articles: How to Trade the Bullish Engulfing Signal, Candlestick Engulfing Patterns Training Tutorial: Bullish Engulfing View Current Charts & Lists of Stocks for Bullish Engulfing Stock Screens

BEARISH ENGULFING Recognition: The body of the second day completely engulfs the body of the first day. Shadows are not a consideration. Pattern Psychology: This shows the Bears are overwhelming the Bulls, suggesting prices will move down. Related Articles: How to Trade the Bearish Engulfing Signal, Candlestick Engulfing Patterns Training Tutorial: Bearish Engulfing View Current Charts & Lists of Stocks for

HAMMERS and HANGING-MAN Recognition: The lower shadow (or tail) should be at least two times the length of the body. The color of the body is not important although a black body has slightly more Bearish indications and a white body has slightly more Bullish indications. Pattern Psychology: This pattern at the bottom of a down trend is called a Hammer. This pattern at the top of an uptrend is called a Hanging-Man Related Articles: How to Trade The Hammer Signal, How to Trade the Hanging Man Training Tutorials: Hammer, Inverted Hammer, Hanging Man

PIERCING PATTERN Recognition: A two candle pattern, the body of the first candle is black and the body of the second candle is white. The white day opens lower, under the trading range of the previous day. The price closes above the 50% level of the black body. Pattern Psychology: After a strong downtrend, the atmosphere is Bearish but before the end of the day the Bulls step in and price closes near the high of the day. Related Articles: How to Trade the Piercing Pattern Training Tutorial: Piercing Pattern

DARK CLOUD Recognition: A two candle pattern, the body of the first candle is white and the body of the second candle is black. The black day opens higher, above the trading range of the previous day. The price closes below the 50% level of the white body. Pattern Psychology: After a strong uptrend, the atmosphere is Bullish but before the end of the day the Bears step in and price closes near the low of the day.

Related Article: Stock Trading Methods

How to Trade the Dark Cloud Signal

Training Tutorial: Dark Cloud Cover

BULLISH HARAMI Recognition: A two candle pattern forming in a down trending price pattern. The body of the first candle is the same color as the current trend and should be a long black candle. The body of the second candle is white and opens and closes within the body of previous day's candle. Pattern Psychology: After a strong downtrend the Bulls step in and open the price higher than the previous day's close. This concerns the Bears and the shorts start covering their postions. A strong day after that would convince everybody that the trend may be in a reversal. Related Articles: How to Trade the Bullish Harami Signal Training Tutorial - Harami Pattern The Harami - A High Profit Candlestick

BEARISH HARAMI Recognition: A two candle pattern forming in an uptrending price pattern. The body of the first candle is the same color as the current trend and should be a long white candle. The body of the second candle is black and opens and closes within the body of the previous day's candle. Pattern Psychology: After a strong uptrend the Bears step in and open the price lower than the previous day's close. The price finishes lower for the day and the Bulls are concerned and begin taking their profits. Related Articles: How to Trade The Bearish Harami The Harami - A High Profit Candlestick Signal Training Tutorial: Harami Pattern

MORNING STAR Recognition: A three candle pattern at the bottom of a downtrend.The body of the first candle is black, confirming the current downtrend. The second candle is an indecisive formation. The third candle is white and should close at least halfway up the black candle. Pattern Psychology: After an apparant downtrend the Bulls step in and open the price higher than the previous day's close. The price finishes higher for the day and the Bears are concerned and begin covering their short positions. Related Articles: How to Trade the Morning Star Signal Morning Star Reversal Signal

Training Tutorial: Morning Star & Evening Star Signals

EVENING STAR Recognition: A three candle pattern at the top of an uptrend. The body of the first candle is white, confirming the current uptrend. The second candle is an indecisive formation. The third candle is black and should close at least halfway down the white candle. Pattern Psychology: After an apparant uptrend the Bears step in and open the price lower than the previous day's open. The price finishes lower for the day and the Bulls are concerned and begin selling to take their profits. Related Articles: How to Trade the Evening Star Signal Signal Training Tutorial: Morning Star & Evening Star Signals Swing Trading with an Evening Star

Kicker Signals Bearish and Bullish Recognition: The first day's open and the second day's open are the same BUT the price movement is in opposite directions.

Pattern Psychology: The Kicker Signal demonstrates a dramatic change in investor sentiment. The longer the candles, the more dramatic the price reversal. Related Articles: What is the Strongest Candlestick Signal - The Kicker!, Technical Analysis that Produces Big Profits Training Tutorial: Kicker Signals

SHOOTING STAR Recognition: One candle pattern appearing in an uptrend. The shadow (or tail) should be at least two times the length of the body. The color of the body is not important, although a black body has slightly more Bearish indications. Pattern Psychology: After a strong uptrend the Bulls appear to still be in control with price opening higher, but by the end of the day the Bears step in and take the price back down to the lower end of the trading range. Lower trading the next day reinforces the probability of a pullback. Related Articles: How to Trade the Shooting Star Signal Training Tutorial: The Shooting Star

Inverted Hammer Recognition: The upper shadow should be at least two times the length of the body. The real body is at the lower end of the trading range. There should be no lower shadow or a very small lower shadow. Pattern Psychology: After a downtrend has been in effect, the atmosphere is Bearish. The price opens and trades lower but before the end of the day, The Bulls step in and take the price back up. A higher open or a white candle the next day reinforces buying. Related Articles: Technical Analysis Simplified, How to Trade the Inverted Hammer Training Tutorial: The Inverted Hammer

Training Tutorial Candlestickforum Flash Cards These unique Flash Cards will allow you to be "trading like the Pro's" in no time.

Maximize Profits and "High Profit Candlestick Patterns: Turning Investor Sentiment into Profits" released December 2005. Throughout history, investors have acted in the same manner through all market conditions. Investment behavior is a function of the market conditions. The Candlestick Forum helps investors recognize those market conditions, explains how human weakness creates those conditions and instructs the investor to take command of those weaknesses. The Japanese viewed patterns developing over a number of centuries. The patterns produced predictable results. Learning the patterns is a simple process. Utilizing the underlying knowledge built into the signal formation provides an immense advantage for amassing wealth. You now have the forum to learn how to direct your own investment results. This website is established for the continuation of the learning process. Any services that you utilize from The Candlestick Forum's expertise can always be confirmed and reinforced through constant contact with the Candlestick Forum's staff. Becoming proficient at any trading method requires constant exposure to training and practice. The Candlestick Forum staff acts as a constant source of signal analysis confirmation as well as an educational taskmaster to keep subscribers alert to highly profitable trade situations. Learn the intricacies that make the signals so powerfully effective. The Candlestick Forum's library of E-books provide detailed insights into mastering the Candlestick methodology in-depth. Over a decade of learning procedures have been developed into a fast and easy method for becoming profitably proficient. Discover the potency a price move produces when knowing the psychology behind a reversal formation. Cultivate inordinate profits from a portfolio by exercising simple stop-loss methods made obvious by the Candlestick formations.

Discover the knowledge filled e-books that describe how to make huge profits from candlestick signals. The magnitude of your profit potential is limited only to the level of leverage you want to partake. The Candlestick Forum's e-books provide clear descriptions of how to use options, futures, commodities and margin in conjunction with reversal patterns. Consistent use of high probability trades can produce massive returns. The compounding effect of well designed, high profit potential trading programs turn singles into home run returns. Become educated in trading practices that eliminate destructive emotional intervention. Take advantage of the benefits that Japanese Candlestick trading provides. Opportunities are easily identified, Somebody will take advantage of the information the signals provide. Once you learn the valuable benefits revealed by Candlestick formations, the rewards will be overwhelming.

Candlestick Images and Explanations
The Added Power of Candlestick Formations Training Tutorial Candlestickforum Flash Cards These unique Flash Cards will allow you to be "trading like the Pro's" in no time.

The Bearish Engulfing Pattern is directly opposite to the bullish pattern. It is created at the end of an up-trending market. The black real body completely engulfs the previous day's white body. This shows that the bears are now overwhelming the bulls.

The Dark Cloud Cover is a two-day bearish pattern found at the end of an upturn or at the top of a congested trading area. The first day of the pattern is a strong white real body. The second day's price opens higher than any of the previous day's trading range.

The Piercing Pattern is a bottom reversal. It is a two candle pattern at the end of a declining market. The first day real body is black. The second day is a long white body. The white day opens sharply lower, under the trading range of the previous day. The price comes up to where it closes above the 50% level of the black body.

Hammer and Hanging-man are candlesticks with long lower shadows and small real bodies. The bodies are at the top of the trading session. This pattern at the bottom of the down-trend is called a Hammer. It is hammering out a base. The Japanese word is takuri, meaning "trying to gauge the depth".

The Morning Star is a bottom reversal signal. Like the morning star, the planet Mercury, it foretells the sunrise, or the rising prices. The pattern consists of a three day signal.

The Evening Star is the exact opposite of the morning star. The evening star, the planet Venus, occurs just before the darkness sets in. The evening star is found at the end of the uptrend.

A Shooting Star sends a warning that the top is near. It got its name by looking like a shooting star. The Shooting Star Formation, at the bottom of a trend, is a bullish signal. It is known as an inverted hammer. It is important to wait for the bullish verification. Now that we have seen some of the basic signals, let's take a look at the added power of some of the other formations.

Stephen Bigalow is conducting 2-Day Workshop Seminars for training as a Candlestick Analysis Technician - Level 1. The level 1 coursework unravels the mystery of reading financial charts and propels your investment expertise to the next level. This 2-Day workshop takes the confusion out of tedious chart interpretation and replaces it with a quick visual snapshot within seconds!

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Secondary Signals
Just like the Major Candlestick Images and Explanations page, this page provides all the information you need to learn the Candlestick Secondary Signals. The Secondary Signals are titled as such because they do not appear as frequently as The Major Signals. That does not negate the effectiveness or their importance for identifying reversals. Being aware of the implications of these Secondary Signals in Candlestick Charts provides additional opportunities during the course of investment decisions.

Tri Star Pattern Recognition: The Tri Star pattern is comprised of a three-day pattern, all doji days. Pattern Psychology: Doji reveals indecision in the bull’s and the bear’s camp. Any investor that had any conviction is now reversing their position. Related Articles: Trading the Tri-Star Pattern Training Tutorial: Candlestick Forum Flash Cards

THREE BLACK CROWS Recognition: Three long black candles occur, after a strong uptrend, all of close to equal length. Pattern Psychology: The uptrend has now reached levels where the sellers have started to step in. This persistant pressure by the Bears provides the potential for a strong downtrend. Related Articles: Trading Three Black Crows Pattern Training Tutorial: Candlestick Forum Flash Cards

THREE IDENTICAL CROWS

Recognition: The Three Identical Crows have the same criteria as the Three Black Crows. The difference is that the opens are at the previous day's close. Pattern Psychology: After an uptrend a long black candle forms. However, the selling is more severe and there do not appear to be any buyers at the next day's open. This indicates a much greater motivation to get out of the position. Related Articles: Trading the Three Identical Crows Pattern Training Tutorial: Candlestick Forum Flash Cards

TWO CROWS Recognition: It is a top reversal pattern only after an obvious uptrend. Pattern Psychology: After a strong uptrend has been in effect, the price gaps open but cannot hold its gains. The further the third day closes into the last white Bullish candle, the more bearish it is.

Related Articles: Trading the Two Crows Pattern Training Tutorial: Candlestick Forum Flash Cards

UPSIDE GAP TWO CROWS Recognition: Three-Day reversal pattern with a Gap Up in the Uptrend Pattern Psychology: After a strong uptrend, there is last gasp buying at the top causing a gap in price. Related Articles: Trading the Upside Gap Two Crows Pattern Training Tutorial: Candlestick Forum Flash Cards UNIQUE THREE RIVER BOTTOM Recognition: Three-Day reversal pattern at the end of a strong downtrend. Pattern Psychology: After a strong downtrend the Bears would appear to be in control, but this rare pattern provides an early indication of a successful reversal ahead.

Related Articles: Trading the Unique Three River Bottom Pattern Training Tutorial: Candlestick Forum Flash Cards

THREE WHITE SOLDIERS Recognition: Three-Day reversal pattern is easily identified by three large Bullish candlestick signals, an obvious pattern of buying. Pattern Psychology: A strong downtrend or flat trading period with buyers overcoming the early sellers. Related Articles: Trading the Three White Soldiers Training Tutorial: Candlestick Forum Flash Cards THREE INSIDE UP & THREE INSIDE DOWN Recognition: Three-Day reversal pattern alerted by the appearance of a Harami signal. Pattern Psychology: The Harami is the first indication that the trend has stopped. Related Articles: Trading the Three Inside Up or Down Reversal Pattern Training Tutorial: Candlestick Forum Flash Cards

MEETING LINES Recognition: Meeting lines are formed when opposite colored bodies have the same closing price.

Pattern Psychology: After a strong trend, there is a continued gap in the direction of the trend. (see detailed description in Trading the Meeting Lines)

Related Articles: Trading the Meeting Lines Training Tutorial: Candlestick Forum Flash Cards

BELT HOLD Recognition: Strong trend in price, followed by a gap in the same direction as the trend. Pattern Psychology: After a strong trend, there is a gap in the same direction but the opening price does not hold causing investors to begin covering their positions. Related Articles: Trading the Belt Hold Pattern Training Tutorial: Candlestick Forum Flash Cards

THE BREAKAWAY Recognition: A gap down found during a declining trend Pattern Psychology: If the gap does not fill the Bears have maintained control. Related Articles: Trading the Breakaway Pattern Training Tutorial: Candlestick Forum Flash Cards

THREE STARS IN THE SOUTH Recognition: Obvious down-trend in stock price. Pattern Psychology: The shadows, or tails, indicate that some buying has presented itself. Related Articles: Trading Three Stars in the South Training Tutorial: Candlestick Forum Flash Cards

ADVANCE BLOCK Recognition: In an uptrend, or a bounce up during a long downtrend, the candle bodies becoming increasingly smaller. Pattern Psychology: Reveals a slowing of the buying. Related Articles: Trading the Advance Block Pattern Training Tutorial: Candlestick Forum Flash Cards

DELIBERATION Recognition: Uptrend in stock with candle sizes deminishing. Pattern Psychology: A slow down in represents buyer weakness Related Articles: Trading the Deliberation Pattern Training Tutorial: Candlestick Forum Flash Cards

CONCEALING BABY SWALLOW Recognition: The pattern is in a downtrend, two large black candles continue the downtrend and is followed the third day with a gap down reverse hammar formation. Pattern Psychology: While the trading ended at the low, the magnitude of the downtrend is greatly deminished.

Related Articles: Trading the Concealing Baby Swallow Training Tutorial: Candlestick Forum Flash Cards

STICK SANDWICH Recognition: This pattern looks similar to an 'ice cream sandwich'., with one white candle sandwiched in between two dark candles.

Pattern Psychology: The Bears are forced to cover short positions upon seeing new buying strength coming into the market.

Related Articles: Trading The Stick Sandwich Training Tutorial: Candlestick Forum Flash Cards

HOMING PIGEON Recognition: Similar to the Harami except for the color of the second day's body. Pattern Psychology: The appearance of support in a strong down trend gets enough attention from the Bears that they begin covering their short positions. Related Articles: Trading the Homing Pigeon Training Tutorial: Candlestick Forum Flash Cards

LADDER BOTTOM Recognition: A strong downtrend is in effect with the reversal apparant with a gap up on the fourth day. Pattern Psychology: The gap up causes the Bears to start scrambling to cover their positions before the Bulls take over. Related Articles: Trading the Ladder Bottom Training Tutorial: Candlestick Forum Flash Cards

MATCHING LOW

Recognition: A downtrend is in place when two trading days close on their lows, at the same level.

Pattern Psychology: The Bears get uneasy upon seeing their presence is no longer moving the price down.

CONTINUATION PATTERNS FOUND IN CANDLESTICK CHARTING
Most Candlestick signals are reversal patterns; however, there are periods of trends that represent rest. The Japanese insight is, "there are times to buy, times to sell, and times to rest." Once a pattern is recognized, it is suggesting a direction for future price movements. Continuation patterns found in candlestick charting help with the decision-making process. Whatever the pattern, a decision has to be made--even if the decision is to do nothing. Learning the continuation patterns found in candlestick charting has important features. In some cases, differences between reversal patterns and the continuation of a trend can be subtle. Candlestick Charting provides the knowledge of how minor price variations can affect the direction of a trend can lead to enhancements of profits. As the candlestick charts are studied, recognizing the differences will greatly alter investment strategies. For easier reference, continuation patterns found in candlestick charts have a section of their own. Each week we will select a continuation pattern and break it down into detail with the description, pattern criteria, and pattern psychology from the list below.

UPSIDE TASUKI GAP Pattern Description with criteria and Pattern Psychology

Stockcharts With Rising Trend Patterns - The Upside Tasuki Gap
Stockcharts work equally well applied to individual stocks or to the major indices. Stockcharts with Rising Trends indicate whether investor sentiment in the current market is Bullish or Bearish. On individual stockcharts with rising trends, the Candlestick Signals help analysts spot the trend. Technical analysis is a skill that improves with practice. Candlestick stockcharts quickly advance the learning curve for interpreting patterns. The Candlestick Forum provides weekly newsletters with specific stockcharts of interest in the current market. We encourage you to signup for our free newsletter and join us each Thursday for our free stock chat. These stock chat sessions, with Stephen W. Bigalow, review current market conditions and specific stockcharts showing high profit potential trades. This article focuses on identifying the UPSIDE TASUKI GAP, a Bullish Continuation Pattern. If you are new to trading, you will also want to review the 12 Major Candlestick Signals and Secondary Candlestick Signals.

UPSIDE TASUKI GAP (uwa banare tasuki)

Description The Upside Tasuki Gap is found in a rising trend. A White candles forms after gapping up from the previous white candle, as shown in the above illustration. The next day opens lower and closes lower than the previous day. If the gap is not filled, the Bulls have maintained control. If the gap was filled, then the bullish momentum has come to an end. If the gap is not filled, it is time to go long. The definition of a Tasuki is a 'sash that holds up one's sleeve.' Criteria 1. An uptrend is in progress. A gap occurs between two candles of the same color. 2. The color of the first tow candles is the same as the prevailing trend. 3. The third day, an opposite color candlestick opens within the previous candle and closes below the previous open. 4. The third day close does not fill the gap between the two white candles. 5. The last two candles, opposite colors, are usually about the same in size. Pattern Psychology Explaining the Tasuki Gap is simple. The Japanese place significance on gaps. When one appears in the middle of the trend and is not able to fill itself on weakness the next day, the strength is still in the uptrend. The pullback day is now construed as being a profit-taking day.

Back to Continuation Patterns

Technical analysis tutorial simplified with candlestick signals

Technical analysis tutorial easy learning with candlestick signals What is the best technical analysis tutorial? Learning a technical trading method that is very easy to comprehend. Candlestick signals provide visually simple reversal patterns. The most profitable technical analysis tutorial should be learning the basic premise for investing. Learning when to buy at the bottom and sell at the top. Candlestick signals simplify any technical analysis tutorial. The information built into each signal provides a format for investors to understand why a reversal is occurring. Most technical analysis tutorial training involves learning where price reversals 'might' occur. Candlestick signals illustrate where investor sentiment is actually changing. Applying this information to other technical analysis methods greatly enhances the results. Utilizing the information provided in each candlestick signal becomes a valuable tool for better understanding what a technical analysis tutorial is trying to convey. Use the candlestick signals to pinpoint why and where a reversal is occurring in a trend. Use other commonly used technical analysis indicators to further confirm those reversals. The candlestick signals produce an optimal analysis format. The statistical information resulting from a candlestick reversal signal, with hundreds of years of actual utilization, produces an extremely high probability result. Having an understanding of what each individual signal reveals creates a huge investment advantage. The investor that is serious about improving their trading results should take the time to learn the 12 major candlestick reversal signals and become from familiar with the rest of the signals. There are approximately 60 candlestick signals in the Japanese candlestick universe. For complete technical analysis tutorial click here for our training videos.

This week's featured Candlestick Pattern Downside Tasuki Gap

Description The Downside Tasuki Gap is found during a declining trend. A black candle forms after gapping down from the previous black candle. The next day opens higher and closes higher than the previous day's open. If the gap is not filled, the bears have maintained control. If the gap was filled, then the bearish momentum has come to an end. If the gap is not filled, it is time to go short. You will find the Tasuki pattern more often in the Upside pattern than the Downside pattern.

Criteria 1. A downtrend is in progress. A gap occurs between two candles of the same color. 2. The color of the first two candles is the same as the prevailing trend. 3. The third day, an opposite color candlestick opens within the previous candle, and closes below the previous open. 4. The third day close does not fill the gap between the two candles. 5. The last two candles, opposite colors, are usually about the same size.

Pattern Psychology

Just the opposite as the Upward Tasuki, explaining the Tasuki gap is simple. The Japanese put significance into gaps. When one appears in the middle of the trend and is not able to fill itself on strength the next day, the momentum is still in the downtrend. The bounceup day should be construed as being a short-covering day. After the short covering disappears, the selling continues. Back to Continuation Patterns

Candlestick Charts provide the most important technical analysis tools
There are many important technical analysis tools tools - but The most important technical analysis tools are Japanese Candlestick Signals. Ask yourself this question; How many important technical analysis tools have lasted for centuries? Hmmm, let me think....Japanese Candlesticks? Well, it certainly isn't the latest trading craze bombarding your email inbox. The Japanese did not realize they would provide future generations with the most important technical analysis tools for the 21st Century. Japanese Candlestick charting dramatically accelerates learning important technical analysis required to interepret stock charts. The education process is easy and you can be successfully trading in no time. Unlike confusing line charts, candlesticks provide a visual depiction for reversals, trends or continuation periods. Successful trading can begin with the 12 Major Signals alone! Join us, as we educate investors around the world to trade using the most important technical analysis tools available. Learn the 12 Major Signals, the Reversal Signals, and Continuation Patterns. Don't forget to join Stephen W. Bigalow every Thursday evening for his free stock chat sessions. This article introduces the "On Neck Line" a Bearish Continuation Pattern

ON NECK LINE (ate kubi)

Description The On Neck Line pattern is almost a 'meeting line pattern', but the critical term is 'almost'. The ON Neck pattern does not reach the previous day's close; it only reaches the previous day's low. Criteria 1. A long black candle forms in a downtrend. 2. The next day gaps down from the previous day's close; howver, the body is usally smaller than one seen in the meeting line pattern. 3. The second day closes at the low of the previous day.

Pattern Psychology After a market has been moving in a downward direction, a long black candle enhances the downtrend. The next day opens lower, a small gap down, but the trend is halted by a move back up to the previous day's low. The buyers in this upmove should be uncomfortable that threre was not more strength in the upm,ove. The sellers step back in the next dya to continue the downtrend. Back to Continuation Patterns

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Currency trading made easy with candlestick signals

Currency trading has recently gotten a new spurt of popularity with the advent of Forex trading. Currency trading has a much different dynamic than stock market trading. The major advantage of currency trading is that once a long-term trend takes hold, the trend will move in the same direction for long periods of time, for weeks and months. Candlestick signals work very effectively in currency trading. The same investor sentiment found in stock trading is also found in the candlestick signals when analyzing currency trading. Being able to analyze the direction of a currency dramatically improves Forex trading results. Forex trading can be broken down into very simple analytical features. The candlestick signals easily identify the direction of a specific currency trend. Due to the simple nature of candlestick analysis, being a completely visual process, the evaluation of the different currencies can easily be applied to a Forex trade. Currency trading is nothing more than exploiting the information that the candlestick signals reveal. If the dollar is moving up, and the British pound is trading down as can be identified with the candlestick signals, the Forex trade set up is very simple. Use the information that is provided by the candlestick signals. Currency trading is a very simple process once understanding what the Japanese Rice traders projected for investor sentiment. This same investor sentiment works on all trading entities. Understanding and identifying candlestick reversal or continuation signals helps pinpoint the optimal times to buy and sell. Understanding the investor sentiment that creates the candlestick formations allows an investor to project the direction of specific currencies against each other.

Join us each week in our live internet stock chat as we continue our free training on Trading with Japanese Candlesticks. This week's article introduces the "In Neck Line" a Bearish Continuation Pattern.
IN NECK LINE (iri kubi)

Description The In Neck pattern is almost a Meeting Line pattern. I t has the same description as the On Neck pattern except that it closes at or slightly above the previous day's close. Confirmation is suggested. The In Neck Line indicates some short covering, but not a change in trend direction.

Criteria 1. A long black candle forms in a downtrend 2. The next day gaps down from the previous day's close; howver, the body is usally smaller than one seen in the Meeting Line pattern. 3. The second day closes at the close or just slightly above the close of the previous day.

Pattern Psychology This is the same scenario as the On Neck pattern. After a market has been moving in a downward direction, a long black candles enhances the downtrend. The next day opens lower, a small gap down, but the trend is halted by a move back up to the previous day's low. The buyers in this upmove should be uncomfortable that there was not more strength in the upmove. The sellers step back in the next day to continue the downtrend. Back to Continuation Patterns Candlestick Forum Flash Cards These unique Flash Cards will allow you to be "trading like the Pro's" in no time.

Stockmarket Information for Trading the Thrusting Continuation Pattern

There was a time when stockmarket information was only available to professional money managers. Those times are long since past with the number of individual investors increasing at a rapid pace. The question now becomes, ‘Where does one go for the best stockmarket information?” We attempt to answer this by submitting to you that the best stockmarket information begins with education. While there is a plethora of stockmarket information websites, the key to profiting in the stock market remains – education! This will be your best investment over the long-run and removes the dependence on hot stock picks from websites. Begin your research for stockmarket information by establishing your individual trading preferences. Will you base your trades on fundamental analysis? Technical Chart Analysis? Which technical indicators will have priority? Do you plan to be a ‘swing-trader’ or a long-term investor? I know that is many

questions, but they only begin the many decisions you must make to determine your trading style. Naturally, The Candlestick Forum strong suggests utilizing Japanese Candlesticks as the basis for all your stockmarket information decisions. Regardless of the trading strategy you select, all stockmarket investors must learn to read stock charts. Why make this procedure painful, when candlesticks provide the quickest visual analysis for depicting market direction? Candlestick trading signals will provide more than enough trading opportunities. Candlestick trading analysis does not require knowing intricate formulas or ratios. Candlestick stock analysis does not require massive amounts of education for effective use of the signals. The stock investing basics of Japanese Candlesticks result in clear and easy to identify patterns that demonstrate highly accurate turns in investor sentiment. The average investor does not have to be dependent on the investment professional, a professional whose recommendation does not always have your interest at the forefront. Whether totally unfamiliar with investment concepts or very sophisticated in investment experience, the Japanese Candlestick trading formations are easily utilized. The signals and patterns are easy to see, as in the trading criteria for trading the Thrusting Continuation Pattern.

THRUSTING

Description The Thrusting pattern is almost an 'On Neck' or an 'In Neck' pattern and resembles the Meeting Line pattern, also. It has the same description as the 'On Neck' pattern except that it closes near, but slightly below the midpoint of the previous day's black body. Criteria 1. A long black candle forms in a downtrend. 2. The next day gaps down from the previous day's close; however, the body is usually bigger than the ones found in the On Neck and In Neck patterns. 3. The second day closes just slightly below the midpoint of the previous day's candle. Pattern Pasychology This is the same scenario as the 'On neck' pattern. After a market has been moving in a downward direction, a long black candle enhances the downtrend. The next day opens lower, a small gap down, but the trend is halted by a move back up to the previous day's low. The buyers in this upmove should be uncomfortable that there was not more strength in the upmove. The sellers step back in the next day to continue the downtrend. It is a little stronger than the On neck and In Neck patters, but not quite as strong as the Piercing Line pattern. Back to Continuation Patterns

Falling Three Method - Continuation Pattern
A major candlestick continuation pattern is called the three methods signal and be classified as a rising three, which is bullish, or a falling three, which is bearish. Both signal small interruptions but do not signal a reversal. Taking the concepts of supply and demand into consideration, the three methods are predicated by uncertainty in the market. However, the market corrects itself when the bulls see can't be made or when the bears see that a new high cannot be made. In either situation, the original trend continues. The bulls become bullish again and the bears become bearish again. The three methods are related to support and resistance lines, which can be penetrated, and the Rising Three Methods signal and the Falling Three Method signals are ways of confirming that the attempted penetration will fail, and that the trend will continue. The Falling Three Method begins with a long black candle followed by a series of upward reaction candles. These candles all form within the range of the original candle, but have smaller bodies. Normally, the smaller candles would be white, since the large trend candle is black. The fifth and final candle is the same as the original trend candle but it closes at a new low and opens lower than the close of the previous day. The only difference is that the candle will be higher or lower, depending on the trend of the original candle. Recognizing continuation patterns is important, whether you are in a long position or a short one. Besides adding to positions, it also confirms your other indicators. Even if you are trading on the short side, the three methods can help you use the continuation pattern to do much more. FALLING THREE METHOD

Description The Falling Three Method is basically the opposite of the Rising Three Method, The market has been in a downtrend. A long black candle forums. It is then followed by a series of small candles, each consecutively getting higer. the optimal number of uptrending days should be three. Again, two or four or five counter trend days can be observed. The important factors are that they do not close above the open of the big black candles and that the shadows do not go above the black

candle's open. The final day of the formation should open down in the body of the last uptrend day and close lower than the first big black candle's close. Criteria 1. A Downtrend is in progress. A long black candle forms. 2. A group of small bodied candles follow, preferably white bodied. 3. The close of any of the uptrend days not does close higher than the open of the big white candle. 4. The final day opens up into the body of the last uptrend day and proceeds to close below the close of the first big black candle day. Pattern Psychology The Falling Three Method is considered a rest in the downtrend. Just lie the Rising Three Method, the appearance of the white candle unnerves the bears. Buat any they see the bulls unable to take the prices higher, the bears gain their confidence back and resume their selling. The concept is that the first black candle day brings some doubt ino the bull camp. The next day does the same. By the thrid day, the bears are now convinced that the bulls do not have the strength to push prices up anymore. The bulls get their courage back and start stepping in. Back to Continuation Patterns

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Factors That Affect The Stock Market - Trading the Rising Three Method Continuation Pattern
The ability to analyze factors affecting stock market movement provides an additional advantage for being able to evaluate the direction of the markets. Those factors are not hard to find. They are usually what are being reported on the financial news stations. Recently, Crude Oil has been an influence. Also, the decline of the US dollar has become a factor. The Candlestick signals provide the insights on how the outside influences will affect the Dow and the NASDAQ. The US dollar has formed a few Doji's when

the stochastics were in the oversold condition. There may be an opportunity for a rally in the dollar over the next few days. There appears to be some strength being shown after the Doji's. If this is one of the factors that is affecting the stock market, having a better visual concept of what one of the influences is doing makes for a better evaluation. Crude Oil prices, after their decline from the $57 range down to the $46 range, provided strength to the stock market indexes. As anticipated, with the stochastics in the oversold condition, Crude Oil prices bounced back up to the 50-day moving average after it had broken down through that level. Currently, the January futures contract of Crude Oil has been hugging the 50-day moving average. It formed a Doji on Monday, right at the 50-day moving average. This now becomes an easy evaluation. A bullish day after the Doji would send prices up through the 50-day moving average, indicating that the 50-day moving average is not acting as resistance. On the other hand, seeing the Crude Oil prices heading lower after the Doji would reveal that the 50-day moving average was now acting as resistance and it would be feasible to see new recent contract lows in the near future.

Taking these outside factors into account, it becomes easier to analyze which way the market might go based upon the factors affecting stock market movement. Use the candlestick signals to your advantage no matter which market you are analyzing.

RISING THREE METHOD

Description The Rising Three Method is an easy pattern to see during uptrends. A long white candle forms. It is then followed by a series of small candles, each consecutively getting lower. The optimal number of pull-back days should be three. Two or four or five pull-back days can also be observed. The important factor is that they do not close below the open of the big white candle. It is also preferred that the shadows do not go below the white candle. The final day of the formation should open up int he body of the last pull-back day and close higher than the first big white candle. Criteria 1. An uptrend is in progress. A long white candle forms. 2. A group of small-bodies candles follow, preferably black bodies. 3. The close of any of the pull-back days does not close lower than the open of the big white candle. 4. The final day opens up into the body of the last pull-back day and proceeeds to close above the close of the first big white candle day. Pattern Psychology The Rising Three Method is considered a rest in the trend or, in Japanese terms, a rest from battle. The concept is that the first black candle day brings some doubt into the bull camp. The next day does the same. By the thrid day, the bulls ar now convinced that the bears do not have the strength to push prices down

anymore. The bulls get their courage back and start stepping in. The pattern resembles the Western bull flag or pennant formation, however, the concept was originally developed in the 1700s. In modern terms, the market was just 'taking a breather". Back to Continuation Patterns

buy for delivering stock market data. Voted best in its category since 1993 and Best Software under $500 for 2006 by readers of Stocks & Commodities Magazine. This robust scanning program offers the candlestick investor the ability to pull up the best stock market data qualified through candlestick chart filters. It doesn't stop there, additional stock market data is limitless! Find stocks fast and scan the for stock market data simultaneously for technical and fundamental conditions, in 2 seconds. Or, rank all stock market data with a simple 2-click sort. Get organized with WatchLists, notes, charts, while managing tons of data with one click a day. To help investors interpret stock market data, Stephen Bigalow offers free Daily Stock Market Reports , BLOG Articles, public Stock Chat (bring your own questions on stock market data)and numerous Candlestick Signals explained in our Free Resources category. This week we share with you a powerful Candlestick Continuation Pattern. SIDE-BY-SIDE WHITE LINES - Continuation Pattern (narabi aka)

Description Side-by-Side White Lines are found in uptrends. Two white candles form side-by-side after gapping up from the previous white candle. Narabi in Japanese means 'in a row'. Narabi aka means "whites in a row,; Side-by-Side Lines, black or white, indicate a pause or stalemate when they are observed by themselves. In this case, the stock market data has a different meaning because they occur after a gap in the trend's direction.

Criteria 1. An uptrend is in progress. A gap occurs between two candles of the same co9lor. 2. The color the first two candles is the same as the prevailing trend. 3. The third day, a candle opens at the same or near the open price of the previous day.

The Separating Lines Candlestick Pattern
SEPARATING LINES (iki chigai sen)

Description Iki chigai sen is defined as 'lines that move in opposite directions.' The marke tis in an uptrend when there is a pullback, exhibited by a long black dandle. However, the next day opens back u7p at the same level as it open the prior day. The Separating Line Pattern has the same open and is the opposite color. This is the exact reverse of the Meeting Line Pattern. In other Japanese circles, this is also known as Furiwake or Dividing Lines. Criteria 1. An uptrend is in progress.Then a day occurs that is the opposite color of the current trend. 2. The second day opens at the open of the previous day. 3. The second day, should open on its low for the day and proceed to go higher Pattern Psychology

During the uprend, a black body occurs. This causes some concern to the Bulls. But the next day the prices gap back up to the previous day's open. This gives the bulls confidence that the trend still has life in it. They jump back in andmove prices higher. Confidence is renewed and the trend continues. The bearish Separating Line works the exact same way in the opposite direction.

The Separating Lines Candlestick Pattern
SEPARATING LINES (iki chigai sen)

Description Iki chigai sen is defined as 'lines that move in opposite directions.' The marke tis in an uptrend when there is a pullback, exhibited by a long black dandle. However, the next day opens back u7p at the same level as it open the prior day. The Separating Line Pattern has the same open and is the opposite color. This is the exact reverse of the Meeting Line Pattern. In other Japanese circles, this is also known as Furiwake or Dividing Lines. Criteria 1. An uptrend is in progress.Then a day occurs that is the opposite color of the current trend. 2. The second day opens at the open of the previous day. 3. The second day, should open on its low for the day and proceed to go higher Pattern Psychology During the uprend, a black body occurs. This causes some concern to the Bulls. But the next day the prices gap back up to the previous day's open. This gives the bulls confidence that the trend still has life in it. They jump back in andmove prices higher. Confidence is renewed and the trend continues. The bearish Separating Line works the exact same way in the opposite direction.

Trading the Mat Hold Candlestick Pattern
Mat Hold
(uwa banare sante oshi)

Description Similar to the 'Rising Three Method', it has the look of an Upside Gap Two Crows except that the second black body (third day) dips into the body of the large white candle. It is followed by another small black body that dips a bit further into the white candle body. The final day gaps to the upside. It continues its upward move to close higher than the trading range of any of the previous days. The implication is that the trend has not been stalled. This is a good point to add to positions. The Mat Hold pattern is a stronger continuation pattern than the Rising Three Method. During the days of 'rest,' unlike the Rising Three Method, the price stays close to the top of the white candle's upper range. Criteria 1. An uptrend is in progress. A long white candle forms 2. A gap up day that closes lower than its open creates a small black candle 3. The next two days form small candles somewhat like the Rising Three Method. 4. The final day gaps up and closes above the trading ranges of the previous four days. Pattern Psychology The Mat Hold pattern does not pull back as much as the Rising Three Method. It is easier to identify. The pull-back days are less concerning. The relatively flat rest period does not create the

concern that the Rising Three Method does. After three days of the bears not being able to knock the price down to any great degree, the bulls step back in with confidence.

Back to Continuation Patterns

Trading the Three Line Strike Continuation Pattern
Three Line Strike (sante uchi karasu no bake sen)

Description Three Line Strike, also known as the Fooling Three Soldiers, is a four-line pattern that occurs during a defined trend. This pattern represents a resting period, but unlike most resting periods, this one occurs all in one day. It ends up as an extended Three White Solder pattern

Criteria 1. Three White Soldiers, three white candles, are continuing an uptrend 2. The fourth day open hiher, but then pulls back to close below the open of the first white candle

Pattern Psychology The Three White Soldiers indicate the trend is continuing. The fourth day opens in a manner that resembles the previous days; however, profit taking sets in. It continues until the close is below the open of the first white candle. The black candle body completely negates the rise of the past three days, but it has gotten the short-term pullback sentiment out of the way. The uptrend continues from this point.

Trading the Three Line Strike Continuation Pattern
Three Line Strike (sante uchi karasu no bake sen)

Description Three Line Strike, also known as the Fooling Three Soldiers, is a four-line pattern that occurs during a defined trend. This pattern represents a resting period, but unlike most resting periods, this one occurs all in one day. It ends up as an extended Three White Solder pattern

Criteria 1. Three White Soldiers, three white candles, are continuing an uptrend

2. The fourth day open hiher, but then pulls back to close below the open of the first white candle

Pattern Psychology The Three White Soldiers indicate the trend is continuing. The fourth day opens in a manner that resembles the previous days; however, profit taking sets in. It continues until the close is below the open of the first white candle. The black candle body completely negates the rise of the past three days, but it has gotten the short-term pullback sentiment out of the way. The uptrend continues from this point.

Candlestick Pattern Formations
Japanese Candlestick charting dramatically increases the information conveyed to the visual analysis. Each candlestick trading formation or series of formations can clearly illustrate the change of investor sentiment. This process is not apparent in standard bar chart interpretation. Each candle formation has a unique name. Some have Japanese names, others have English names.

Single candles are often referred to as YIN and YANG lines. These terms are actually Chinese, but are used by Western analysts to account for opposites; in/out, up/down, and over/under. INN and YOH are the Japanese equivalents. YIN is bearish. YANG is bullish. There are nine basic YIN and YANG lines in Candlestick analysis. These are expanded to fifteen to cover all possibilities clearly. The combination of most patterns can be reduced to one of these patterns.

Long days

A long day represents a large price move from open to close. Long represents the length of the candle body. What qualifies a candle body to be considered long? That is a question that has to be answered relative to the chart being analyzed. The recent price action of a stock will determine whether a "long" candle has been formed. Analysis of the previous two or three weeks of trading should be a current representative sample of the price action.

Short Days

Short days can be interpreted by the same analytical process of the long candles. There are a large percentage of the trading days that do not fall into either of these two catagories.

Maruboza
In Japanese, Marubozu means close cropped or close-cut. Bald or Shaven Head are more commonly used in candlestick analysis. It's meaning reflects the fact that there are no shadows extending from either end of the body.

White Maruboza

<> The White Marubozu is a long white body with no shadows on either end. This is an extremely strong pattern. Consider how it is formed. It opens on the low and immediately heads up. It continues upward until it closes, on its high. Counter to the Black Marubozu, it is often the first part of a bullish continuation pattern or bearish reversal pattern. It is called a Major Yang or Marubozu of Yang.

Black Marubozu

A long black body with no shadows at either end is known as a Black Marubozu. It is considered a weak indicator. It is often identified in a bearish continuation or bullish reversal pattern, especially if it occurs during a downtrend. A long black candle could represent the final sell off, making it an "alert" to a bullish reversal setting up. The Japanese often call it the Major Yin or Marubozu of Yin.

Closing Marubozu

A Closing Marubozu has no shadow at it's closing end. A white body will not have a shadow at the top. A black body will not have a shadow at the bottom. In both cases, these are strong signals corresponding to the direction that they each represent.

Opening Marubozu

The Opening Marubozu has no shadows extending from the open price end of the body. A white body would not have a shadow at the bottom end , the black candle would not have a shadow at it's top end. Though these are strong signals, they are not as strong as the Closing Marubozu.

Spinning Top

Spinning Tops are depicted with small bodies relative to the shadows. This demonstrates some indecision on the part of the bulls and the bears. They are considered neutral when trading in a sideways market. However, in a trending or oscillating market, a relatively good rule of thumb is that the next days trading will probably move in the direction of the opening price. The size of the shadow is not as important as the size of the body for forming a Spinning Top.

Doji

The Doji is one of the most important signals in candlestick analysis. It is formed when the open and the close are the same or very near the same. The lengths of the shadows can vary. The longer the shadows are, the more significance the Doji becomes. More will be explained about the Doji in the next few pages. ALWAYS pay attention to the Doji. The dimension of knowing what the formations signify magnifies the potential for profits. The bodies, unlike the bars of bar charts, reveal an immense amount of information.

You Can Now Make Huge Profits From the Most Tested and Researched Investment Methodology in Recorded History Japanese Candlestick Trading
-NOT from well-kept investment "secrets". -NOT from "new" sophisticated formulas that promise amazing profits. You can learn how to make huge and consistent profits from the world's most proven and successful trading technique. Candlestick trading has compelling

results. Backed by a mountain of scientific research - and proven results for thousands of investors - the candlestick trading methods taught on this site will improve your investment results faster and with less effort than you ever dreamed possible! Young, old, male, female, new at investing or a sophisticated trader, everybody can dramatically improve their investment returns using simple Japanese Candlestick analysis. If you can see, you can learn candlestick trading. Candlestick signals provide invaluable insights into the direction of a trend. Review the chart of SeaChange Intl. below. This candlestick formation is called a Bullish Engulfing pattern. It appears at a point that stochastics indicate this stock is oversold. It is a candlestick signal that indicates a major reversal. It visually illustrates when to start buying this stock. No interpretation of trend lines, no calculation of difficult formulas. Just simple visual recognition of a Japanese

Candlestick buy signal. Candlestick investing is simple visual identification.

The accuracy found in the Japanese Candlestick signals produces amazing results not found in any other investment method. The Candlestick Forum has developed techniques to take advantage of the information conveyed by the signals. On this site, you will learn... -How to pinpoint profitable candlestick trades, with the most upside potential and the least downside risk. -Fast and easy methods for remembering the most effective candlestick signal formations. -How to weed out false candlestick signals. -Money management techniques that completely eliminate emotional decisions.

-Breakthrough concepts that expand your wealth in quantum leaps, with very little downside risk. -Powerful candlestick techniques that compound returns to astronomical heights. -How the common investor's investment psyche operates and how the Japanese Candlestick signals point out the profits that can be made from that flawed psyche. -Potent candlestick trading insights that nail the tops and bottoms of trends. Hello! My name is Steve Bigalow, and for 25 years, I have searched for the "Holy Grail" to consistent investment profits. Name any investment technique ever invented and I have probably tried it. Then, a little over 15 years ago, I discovered Japanese Candlesticks. For the past 15 years, I have developed and refined techniques using the Japanese Candlesticks to consistently pull profits from any kind of market. Bull or bear, stocks, commodities, or tulip bulbs, it doesn't matter. All you need to know is how to recognize the easily-seen signals the Japanese Candlesticks create. Get Your Daily Stock Market Report - Read Mr. Bigalow's Market Comments Every Day To Know Where The Stock Market Is Heading The Next Day! My program will accelerate your investment knowledge and net wealth in ways that will absolutely amaze you

Technical analysis stock tutorials - Trading the Tri-Star Pattern
Technical analysis stock tutorials provided by The Candlestick Forum. This is part of our ongoing training for technical analysis stock tutorials for trading candlestick charts and candlestick patterns. We hope you are benefiting from the weekly additions of these secondary candlestick chart patterns and encourage you to check back often. For a complete list of all the technical analysis stock tutorials in our site you will want to begin with The Major Candlestick Signals (click here.) Tri Star Pattern

Description The Tri Star pattern is relatively rare. However, it is a very significant reversal indicator. It is comprised of three Dojis. The three-day period illustrates indecision of a period of days.

Criteria 1. All three days are Dojis. 2. The middle day gaps above or below the first and third day. The length of the shadow should not be excessively long, especially when viewed at the end of a bullish trend. Signal Enhancements 1. The greater the gap, away from the previous days close, sets up for a stronger reversal move. 2. Large volume on one of the signal days increases the chances that a significant reversal is taking place.

Pattern Psychology After an up-trend or a downtrend has been in effect, the appearance of the first Doji reveals that there is now indecision in the bull’s and the bear’s camp. The next day gaps in the same direction as the existing trend and forms the second Doji. This reveals that no certainty for either direction has become apparent. The third day opens opposite the previous trends direction and forms another Doji that day. The final Doji is the last gasp. Any investor that had any conviction is now reversing their position. Because of the rarity of this pattern, double-check the data source to confirm that the Dojis are not bad data.

Stock market investing 101 - Simplified utilizing candlestick signals
Stock market investing 101 should include as easy a process to learn the stock market as possible. Candlestick signals incorporating common sense investment practices meet those criteria. Stock market investing 101 is a process that should allow investors to understand why prices move. The psychology incorporated into candlestick signals makes understanding what is going on in an investor's mind very easy to analyze. The signals were created through hundreds of years of visual analysis and interpretation by successful Japanese Rice traders. Most stock market investing 101 courses want to include fundamental reasons for why prices move. MBA's graduate every year with the concept if you can read a strong balance sheet, the price will move. One of the biggest misconception of investing is anticipating prices to move based upon fundamental reasons. The first lesson of stock market investing 101 should be that prices move based upon the "perception" of fundamental reasons. The Japanese Rice traders discovered this many centuries ago. Why do prices go down when good news is announced? Because the anticipation of that good news was already built into the stock price. Candlestick signals are formed based upon the investor sentiment that indicates a change. Use this information to your advantage. You may not have a research staff or access to extensive research, but you can take advantage of the information conveyed in candlestick signals. Why do candlestick buy signals occur at the bottom? Because the smart money is anticipating what the future potential is for the price. That future potential may be good news. The prospect of favorable news is what makes the smart money buy when everybody else is selling. The announcement of the good news is what makes the smart money sell at the top when everybody else is buying. That information is conveyed through numerous candlestick signals. Trading The Three Black Crows Pattern

Description The Three Black Crows got their name from the resemblance of three crows looking down from their perch from a tree. The signal, occurring after a strong uptrend, indicates the crows looking down, or lower prices to come. This pattern is the opposite of the Three White Soldiers. Criteria 1. Three long black bodies occur, all of close to or equal length. 2. The prior trend was up. 3. Each day opens within the body of the previous day. 4. Each day closes near its low. Pattern Psychology A long black candle forms after an uptrend. This uptrend has now reached levels where the sellers have started to step in. The first long black candle body is followed by two more long black candles. Each having opened in the previous day's body, indicating that buying was occurring early each day but the Bears kept forcing prices down by the end of the day. This consistent process of selling provides a stronger downtrend potential versus a rapid overselling period. Training Tutorial Candlestickforum Flash Cards These unique Flash Cards will allow you to be "trading like the Pro's" in no time.

Stock Market Movers or Stock Market Stinkers?
Stock Market Movers – don’t get me on a rant! I tried to find relevant advice for finding these gems of the market. Instead, I found a plethora of websites proudly displaying nothing, zip, nada to assist an investor on furthering their education. Please, just a little tidbit that evenly remotely relates to stock market movers would be nice! But NO, the ever increasing familiar lists of everything from Art to Sports and how did anyone work in Stock market movers into a Home and Garden website. Somebody help me! I’ve experienced the same frustration of the rest of the internet community and this website continues to provide FREE, ongoing, training materials to help anyone find stock market movers with high profit potential. Stock Market Movers are easier to spot with candlestick patterns. Stock research for finding stock market movers can become very complex. However, the trained candlestick investor sees the familiar candlestick patterns and immediately knows whether a specific stock pattern merits any further of his time and attention. Some so-called stock market movers turn out to be stock market stinkers! You can surf the net looking for stock market movers or you can spend your time learning candlestick signals. My vote is obvious, check our website each week, we promise to continue to deliver new training material. Learn the Candlestick Signals. Below is a favorite pattern, which demonstrates some very anxious sellers.

Trading the Three Identical Crows Pattern

Description The Three Identical Crows have the same criteria as the Three Black Crows. The difference is that the opens are at the previous day's close Criteria 1. Three long black bodies occur, all of close to equal lengths. 2. The prior trend should have been up. 3. Each day opens at the close of the previous day. 4. Each day closes near its low. Pattern Psychology After an uptrend a long black candle forms. However, the selling is more sever. There do not appear to be any buyers at the next day's open. The long black candles, having a stair-stepping pattern to them, indicates a much greater motivation to get out of the position Training Tutorial Candlestickforum Flash Cards These unique Flash Cards will allow you to be "trading like the Pro's" in no time.

Stock Market Home Study Course - Trading the Two Crows Candlestick Pattern
An investor looking for a stock market home study course is looking for investment training that is simple to understand and easy to implement. Many a

stock market home study course does not fulfill that criterion. Investors do not have a firm grip on the information being conveyed. Further expensive training courses are required. A stock market home study course that is simple to understand is the training course for learning candlestick signals. Candlestick signals provide one very simple element. They are visually easy to recognize. The main facet for a stock market home study course should be being able to implement the investment training to successful investing without a multitude of additional courses. Candlestick signals and candlestick analysis utilizes common sense investment practices put into a graphic depiction. The Japanese Rice traders have produced a number of reversal signals that have proven themselves successful over the past for centuries. The results of the signals are statistically proven. Not by computer backtesting, but with actual profitable results through the centuries. A stock market home study course should provide a proven trading program that is not still in the experimentaiton process. Candlestick signals provide investors with a very clear visual format for when a price reversal is occurring. Utilizing this information becomes a simple visual analysis. Another element of a stock market home study course should be its application in all market conditions. Candlestick analysis not only provides a trading method for finding individual stocks, it provides an analysis process for projecting the directions on the markets. The information conveyed through the proper use of candlestick signals produces a training platform that allows an investor to exploit profits from all market conditions. The value of any stock market home study course is directly related to the effectiveness of the information provided. Candlestick signals provide high probability investment situations. Learn how to use the signals correctly and you will understand how the professional investors think. You'll be able to exploit profits from the reoccurring emotional trading where most investors lose money. There are 12 major candlestick signals. Learning those signals well will provide more investment knowledge than most investors will understand in their lifetimes. The remaining candlestick signals are not so important that they need to have a

lot of time and effort spent on learning what they mean. However, being able to recognize the signals allows an investor to come back to a reference and get more information on what that signal is conveying. The Two Crows Pattern is part of our trading articles for Candlestick Secondary Signals. While these signals are considered 'secondary' it does not negate the effectiveness of their strong trading potential. They are called 'secondary' because they do not appear as frequently as The Major Candlestick Signals.
TWO CROWS PATTERN

Description The Two Crows Pattern is a 3-day pattern. It is only a top-reversal pattern. Like the Upside Gap, the Two Crows is a gap pattern, created between the long white candle at the top of an uptrend and the small balck candle at the second day. The black candles gaps open and pulls back before the end of the day. Even though it has pulled back, it did not fill the gap. The third day opens in the body of the small black candle. The Bears maintain the control and move it lower. They are able to fill the gap and close the price within the white candle body. The gap being filled so quickly eliminates any expectations from the bulls. Criteria 1. A long white candle continues the uptrend. 2. The real body of the next day is black while gapping up and not filling the gap.

3. The third day opens within the second day's body and closes within the white candle's body. This produces a black candle that filled in the gap. Signal Enhancements 1. If the third day were to close more than halfway down the white candle, it would form an Evening Star Pattern. Pattern Psychology After a strong uptrend has been in effect, the atmosphere is bullish. The price gap opens but cannot hold the gains. Before the end of the day, the bears step in and take the price back down. However, the gap up from the white candle was not filled. The next day, the price opens slightly higher, within the body of the previous black candle. The bulls aren't as boisterous and cannot keep the momentum going. Prices head lower and closes in the white candle range. The gap up from the bullish exuberance of the previous day is very quickly wiped away. The further the third day closes into the white candle body, the more bearish the implications.

Hot stock market picks are better identified when using candlesticks signals

What is every investor looking for? Hot stock market picks!!! Everybody wants to find the stock that is going to make them wealthy. Hot stock market picks is the Golden Goose that all investors try to find. Is there a system for finding hot stock market picks? Not really, but one of the best investment tools for finding the hot stock market picks is candlestick signals. The signals do not necessarily identify hot stock market picks, they simply put investors into positions that have a high probability of producing big-profit moves.

Candlestick signals identify where money is flowing into and out of stocks/sectors. Being able to identify and understand the investor psychology that creates the candlestick signals produces a huge advantage. It allows an investor to participate in stock investments that have an extremely high probability of moving in the right direction. The signals are created by common sense investment practices. Trying to identify hot stock market picks is a longshot. However, utilizing candlestick signals dramatically increases the probabilities of being in a strong price move. The signals have been developed through hundreds of years of visual analysis. When investor sentiment starts turning, the Japanese Rice traders identified the signals that illustrated the change. The point of investing is to put investment funds into situations that have the highest probabilities of making money. Will there be failed trades? Of course, and the candlestick signals reveal when to get out of those trades very quickly. Will candlestick signals put investors into hot stock market picks? The candlestick signals do not identify the hot stock market picks, they put investors funds into trading patterns that increase the probabilities of participating in big price moves when they occur. Utilizing the signals correctly will dramatically improve the probabilities of being in the right place at the right time. Use to your advantage. Learn the 12 major signals well and you'll understand why prices move. Be aware of the secondary signals because they can also produce the evaluation of whether to get in or stay in positions.

Trading the Upside Gap Two Crows Pattern

Description The Upside Gap Two Crows is a three-day pattern. The upside-gap is created between the long white candle at the top of an uptrend and the small black candle of the second day. The black candle gaps open and pulls back before the end of the day. Even though it has pulled back, it did not fill the gap. The third day opens above where the first black candle opened. It can not hold at these levels and pulls back before the end of the day. Closing lower than the previous day, it has engulfed the small black candle's body. However, it still did not close the gap from the white candle. Criteria 1. A long white candle continues the uptrend. 2. The real body of the next day is black while gapping up and not filling the gap. 3. The third day opens higher than the second day's open and closes below the second day's close. This produces a black candle that completely engulfs the small black candle. 4. The close of the third day is still above the close of the last white candle. Pattern Psychology After a strong uptrend has been in effect, the atmosphere is bullish. The price gaps open but cannot hold the gains. Before the end of the day, the bears step in and take the price back down. However, the gap up from the white candle was not filled. The next day, the bulls try again; they open the price higher than the open of the previous day. Again, they cannot hold the price up. It backs off and

closes lower than the previous day. This now has taken all the steam out of the bulls. At this point, you will want to see the bears really stepping in the next day to confirm the reversal. (This pattern is not as bearish as the Two Crow Pattern)

Practice Stock Trading with Candlestick Chart Patterns
Practice Stock Trading - important advice to novices to the stock market. A great way to practice stock trading is to paper trade. This simulated trading provides great insight without risking any real money while you practice stock trading. There is one caveat to paper trading; play money is very different from real money. While it is wise to practice stock trading before putting your hardearned bucks on the line, the emotional component is not as intense. As your finger hovers nervously over the “submit” button to place your first trade, you experience a tightening in your stomach that is oddly exhilarating and yet unsettling. It is amazing how many thoughts go through your mind once you close your eyes, push that button and start watching your trade. “Please, please let this be a good trade” “Maybe I should practice stock trading a bit more, I think I’m going to be sick” “Is my trade running against me already!” “Should I get out now or wait? Maybe I should turn this trade into a longterm hold and wait for it to go back up.” “My wife is going to kill me!” NOW you know why we recommend trading with candlestick charts. Take advantage of the emotional component that all investors experience and see it; Visually depicted in the charts. Japanese Candlestick charting dramatically increases the information conveyed into visual analysis. Each candlestick trading formation clearly illustrates the change of investor sentiment. This process is not apparent in standard bar chart interpretation. Capitalize on the emotional process other investors fall prey to and practice stock trading with candlesticks. We recommend you begin learning the 12 Major Candlestick Signals - Major in the sense that they occur in price movements often enough to be beneficial in producing a steady supply of profitable trades. Once comfortable with the major

signals, expand on your training to include the Secondary signals, which do not occur as often as the Major Signals but are just as effective. Trading the Unique Three River Bottom Pattern.

Description The Unique Three River Bottom is a bullish pattern, somewhat characteristic of the Morning Star Pattern. It is formed with three candles. At the end of a downtrend, a long black body is produced. The second day opens higher, drops down to new lows, then closes near the top of the trading range. This is a Hammer-type formation. The third day opens lower but not below the low of the previous day. It closes higher, producing a white candle. But it doesn’t close higher than the previous day’s close. This pattern is a rare pattern. Criteria 1. The candlestick body of the first day is a long black candle, consistent with the prevailing trend. 2. The second day does a harami/hammer. It also has a black body. 3. The second day’s shadow has set a new low. 4. The third day opens lower, but not below the lowest point of the previous day. It closes higher but below yesterday’s close.

Signal Enhancements

1. The longer the shadow of the second day, the probability of a successful reversal becomes greater. Pattern Psychology After a strong downtrend trend has been in effect, the trend is further promoted by a long body black candle. The next day prices open higher but the bears are able to take prices down to new lows. Before the end of the day, the bulls bring it back up the the top end of the trading range. The third day, the bears try to take it down again, but the bulls maintain control. If the following day sees prices going up to new highs, the trend has confirmed a reversal.

Commodity trading charts easy-to-read with candlestick signals
Commodity trading charts are very easy to read using candlestick signals. Commodity trading charts are very important for investors using higher leveraged commodity trades. Candlestick signals clearly illustrate where reversals occur in price trends. They work more effectively on commodity trading charts than they do on stock trading charts. Commodity trading charts usually reveal a long and sustained trend. Commodities trade differently than stocks. They have less outside influences to affect the price trend. Candlestick signals reveal when these trend changes are occurring. Commodity prices do not have numerous factors that will change a price trend. Most of the time, commodity prices move basically on supply and demand issues. That is the true nature of free markets at work. Candlestick signals pinpoint when a change of a major trend is going to occur. Investor sentiment is the true gauge for identifying when supply and demand is changing course. The Japanese Rice traders made fortunes trading the most basic of commodities, Rice. The information that is conveyed by the individual candlestick signals produces recognized formations. These formations/signals have not only been identified by Japanese Rice traders, they were able to evaluate what the investor sentiment was doing at these reversals. This information is very valuable when analyzing commodity trading charts. The same information is easily applied to

any trading entity. Investor decisions remain constant throughout the centuries. Fear and greed become a vital part of the movement of prices. Commodity traders gain a huge advantage when able to recognize reversal signals. The most proven and tested reversal signals are candlestick signals. They have been utilized successfully for centuries. Having a visual pattern that demonstrates the change of investor sentiment is a valuable cool. An investor that can recognize the reversal signals to have worked effectively for centuries improves their probabilities of being in the right trade at the right time. Each of the signals has advantageous elements. Whether a major signal or a secondary signal, applying candlestick analysis to commodity trading charts will dramatically improve an investor's profits. Learn how to interpret these simple reversal signals, and the probabilities become greatly enhanced in the investor's favor. This Secondary Signal, The Three White Soldiers, is one of many strong reversal patterns. Three White Soldiers

Description The Three White Soldiers (also known as The Advancing Three White Soldiers) is a healthy market reversal pattern. It consists of three white candles, the second and third candles opening lower than the previous close but closing at a new high.

Criteria

1. Each consecutive long candle closes with a higher open. 2. The second and third candlesticks open in the previous day's body. 3. Each day should close very near its high for the day 4. The opens should be within the top half of the previous day's body. Pattern Psychology After a downtrend or a flat period, the presence of this formation suggests a healthy rally will occur. The strength of this formation consists of the fact that each day, the lower open suggests that sellers are present. By the end of each day, the buying has overcome the early sellers. This represents that a healthy continued rally has selling occurring as it is happening. As in any rally, too much buying with little selling can be dangerous. This Bullish reversal pattern needs no confirmation. Candlestick Forum Flash Cards These unique Flash Cards will allow you to be "trading like the Pro's" in no time.

Candlestick Patterns Provide Excellent Stock Market Trading Tools
When deciding on which stock market trading tools to use for trading your own portfolio - Nothing beats Candlestick Signals! Stock charts displayed in bar chart formats are difficult to interpret and frustrating to investors new to the stock market. Even if you are unfamiliar with reading stock charts, Candlestick Charts provide clear and easy to identify patterns. Reading about the Japanese Candlestick signals is interesting and it aids in remembering profitable pattern setups. The Candlestick Forum presents stock market trading tools that help investors read stock charts and recognize dependable trading patterns. These patterns produce predictable results which are easily combined with other technical analysis tools. Stock market trading tools do not have to be difficult, especially if you begin with Candlestick Charts.

Three Inside Up and Three Inside Down

Description Note that after the long candle day that is in the same direction of the trend that the Harami pattern occurs. The Harami is the first indication that the trend has stopped. The third day confirms that the harami has indicated correctly. The three-day pattern is a modern era confirmation of the Harami pattern. Criteria 1. The Harami pattern is the overriding signal component of this pattern. 2. The harami body should be the opposite color of the long candle day. 3. Day three has a close that is higher than the open of day one.(Three Inside Up) Or lower than day one in the bearish indication.(Three Inside Down) Pattern Psychology After a trend and the occurrence of a long body day that extends that thread, the harami pattern shows that the trend has stopped. A factor that helps identify the strength of the reversal is how big the harami is compared to the previous day's body. A body that is relatively large indicates more strength in the opposite direction. Additionally, the magnitude of the strength in day three adds to the potency of the reversal.

Training Tutorial Candlestickforum Flash Cards These unique Flash Cards will allow you to be "trading like the Pro's" in no time. Return to Candlestick Explanation for Secondary Signals

Candlestick Stock Chart Patterns are the most reliable method for trading the markets
Stock chart patterns have been utilized in the stock market for centuries. These recurring stock chart patterns create a huge advantage for technical investors by assisting them in identifying pattern trends. Depending upon the stock chart patterns, the pattern representation alerts traders to short term trend reversals, continuation patterns, market tops, false breakouts, and potentially explosive moves in price. Stock chart patterns continue to gain popularity in the trading community due to their ability to predict price movements. It is no surprise that many of the new stock market charting programs include search parameters identifying candlestick patterns. Serious investors recognize the value of candlestick stock chart patterns and benefit from the message each signal conveys. These patterns reflect group behavior behind price movement and provide valuable insight. Take the mystery out of stock chart patterns and learn to trade with Japanese Candlesticks. Each week we add a new article focusing on a specific candlestick pattern and unravel the secret behind upcoming price moves. This week’s signal –

Trading the Meeting Lines – A Candlestick Reversal Pattern. MEETING LINES

Description Meeting Lines (or Counterattack Lines) are formed when opposite colored bodies have the same closing price. The first Candlestick body is the same color as the current trend. The second body is formed by a gap open in the same direction as the trend. However, by the close, it has come back to the previous day's close. The Bullish Meeting Line has the same criteria as the Piercing Line except that is closes the same close as the previous day and not up into the body. Likewise, the Bearish Meeting Line is the same as the Dark Cloud pattern, but it does not close down into the body of the previous day. Criteria 1. The first candlestick body should continue the prevailing trend. 2. The second candlestick gaps open continuing the trend. 3. The real body of the second day closes at the close of the first day. 4. The body of the second day is opposite color of the first day 5. Both days should be long candle days. Signal Enhancements 1. The longer the bodies, the more significant the reversal pattern.

Pattern Psychology After a strong trend has been in effect, the trend is further promoted by a long body day. The exuberance is increased the second day with a gap in the same direction. But before the end of the day, the price has come back to the same closing price of the previous day. This indicates that the other sid eof the market has now stepped in. Another day, opposite of the predominant trend is required to demonstrate that the trend has reversed. The opposite colored body does not need to be a long as the first body. In every case, a confirmation day is going to be needed. The pattern has more strength if there are no shadows at the meeting point. Candlestick Forum Flash Cards These unique Flash Cards will allow you to be "trading like the Pro's" in no time. Return to Candlestick Explanation for Secondary Signals

Stock Market Investing Guide Should Incorporate Candlestick Signals
What is the best stock market investing guide? An investment method that has common sense investor intelligence built in. This is exactly what the candlestick signals provide. Most investors do not have a stock market investing guide. They will try anything that promotes high profit results. They move from one technique to the next not ever finding an investing technique that works. What should be used as a stock market investing guide? A technique that is proven. A technique that can be easily learned. A technique that once you have learned it, can be applied to any trading market or any market conditions. Candlestick signals are the cumulative knowledge of everybody that is buying and selling a trading entity in a specific timeframe. The Japanese Rice traders

not only identified the change of investor sentiment in a trend, being able to pinpoint the reversals of a trend, they also learned what the investor sentiment was doing to create that reversal. This information becomes very powerful for the investor. If an investor has a stock market investing guide that not only illustrates when to buy and when to sell, but also educates the investor as to why they are buying and selling, this provides the knowledge to successfully trade any market. Learn how to use candlestick signals correctly. Having the ability to understand why the signals work creates the investment knowledge to give an investor full utilization of their investment abilities. The major signals have powerful implications. The secondary signals also provide valuable information. Using the signals as a stock market investing guide will provide a comprehensive investment format. An investor can apply candlestick signals as the basis for any other trading technique. Learning the candlestick signals allows the investor to gain insights into market trends that are not available with any other trading techniques. This week's signal - Trading the Belt Hold Pattern - Reversal Signal BELT HOLD

The Belt Hold lines are formed by single candlesticks. The Bullish Belt Hold is a long white candle that has gapped down in a downtrend. From it’s opening point, it moved higher for the rest of the day. This is called a White Opening Shaven Bottom or White Opening Maruboza. The bearish Belt Hold is just the opposite. It is formed with a severe gap away from the existing uptrend. It opens at it’s high and immediately backs off for the rest of the day. It is known as a Black Opening Shaven head or Black Opening Maruboza. Yorikiri, a sumo wrestling term, means

pushing your opponent out of the ring while holding onto his belt. The longer the body of the Belt Hold, the more significant the reversal.

Criteria 1. The candlestick body should be the opposite color of the prevailing trend. 2. It significantly gaps open, continuing the trend. 3. The real body of the candlestick has no shadow at the open end. The open is the high or low of that trend. 4. The length of the body should be a long body. The greater the length, the more significant the reversal signal.

Signal Enhancements 1. The longer the body, the more significant the reversal pattern. Pattern Psychology After a strong trend has been in effect, the trend is further promoted by a gap open, usually a large gap. The opening price becomes the point where the price immediately moves back in the direction of the previous close. This makes the opening price the high or the low for the trend. This causes concern. Investors start to cover shorts or selling outright. This starts to accentuate the move, thus reversing the existing trend.

Candlestick Forum Flash Cards These unique Flash Cards will allow you to be "trading like the Pro's" in no time.

Commodity trading course not required with candlestick signals

A commodity trading course is not needed when utilizing candlestick signals. What can be taught in a commodity trading course? An investor only needs to understand what makes commodity prices move up or down. Candlestick signals clearly demonstrate when prices are going higher, or going lower. A commodity trading course can not provide a platform for analyzing what prices are going to do. What makes commodity prices move? Supply and demand! A commodity trading course will not be able to produce the insights to trade successfully. Candlestick signals produce the format for detecting changes in investor sentiment. Where do investors learn how to trade commodities? There is not a commodity trading course available in institutions of higher learning. An investor needs a platform for detecting when to buy and when to sell. The Japanese Rice traders developed the most basic and accurate method for producing high profits in commodity trading. They traded the most basic of commodities, Rice. The information that is conveyed in a candlestick signal is much more important than trying to analyze the fundamental conditions of a commodity price. The big money, 'smart money,' can be seen establishing their positions based upon what the candlestick signal formations reveal. Utilize the simple information that is conveyed in a candlestick signal. Each signal has been analyzed for hundreds of years. Not only does that analysis include visual recognition of a reversal in a commodity price trend, the Japanese Rice traders were able to evaluate what the investor sentiment was doing to create the reversal signal. Learn to use the candlestick signals correctly and understand the information that each signal provides and you will have a huge investment advantage. This is not difficult analysis. Each candlestick signal illustrates what investors were thinking at important reversal points. When this knowledge can be seen in a graphic formation, the probabilities of being in the correct trade at the correct time increases dramatically. This week's featured Candlestick Pattern -

The Breakaway Pattern

Description If a trend has been evident, the breakaway pattern, whether bullish or bearish initially indicates the acceleration of that trend. The pattern starts with a long candle representing the current trend. The next candle gaps away from the long candle with the color of that candle the same as the long candle. The third day can be either color. It will not show a change in the trend. The fourth day continues the trend, having the same color as the trend. The fifth day reverses the trend. It opens slightly opposite of the way the trend has been running. From there, it continues in the same direction to where it closes in the gap area.

Criteria 1. The first day is a long-body day has the color of the existing trend. 2. The second day gaps away from the previous close. It has the same color as the first day candle. 3. Day three and four have closes that continue the trend. 4. The last day is an opposite color day that closes in the gap area between day one and day two. Pattern Psychology After a trend, usually in an overbought or oversold area, a long candle forms. The next day they gap the price further. That day has the same color as the trend. For the next two days, the bulls and/or bears keep the trend going in the

same direction, but with less conviction. The final day, the move goes opposite the existing trend with enough force to close in the gap area between day one and day two. This day completely erases the move of the previous three days.

Stock Market Information Websites - Don't Become Overwhelmed
There are over 75 million pages on the internet covering Stock Market Information Websites. Where do you begin? Naturally, The Candlestick Forum believes we can deliver the goods! With so many stock market information websites to review, new investors could spend months sorting through the hype. That is why The Candlestick Forum provides free stock market information for both the new and experienced investor interested in quickly learning how to read stock charts. Investors’ easily learn to identify common buy and sell signals with candlestick charts. We offer ‘printable’ pages for your reference for trading all the major signals, the secondary signals (also, called reversal signals), and Continuation Patterns. Each week we add a new trading signal to our website and encourage you to check back often to gradually continue your stock market information training. We also list several stock market information websites to alert our readers to other websites. Unlike many stock market information websites, we do NOT participate in irrelevant link exchanges that end up taking you on a wild goose chase. A member of our staff has personally reviewed each site. We are certain Candlestick Signals and Patterns are the basis for successful trading. Become comfortable reading stock charts and then expand your education by combining the Japanese Candlestick Techniques with Western techniques. Review our recommended reading and Other Recommended Stock Market Information Websites.

THREE STARS IN THE SOUTH

Description The slow down of the trend is visually obvious. The opposite signal pattern is the Advance Block pattern. The long black body at the end of a downtrend is the first portion of this pattern. The shadow indicates that some buying had presented itself. The next day reveals a deterioration of the selling. The third day is a Marubozu, no shadows. A bullish day following this pattern is good confirmation that the downtrend fizzled and reversed. Criteria 1. The first black candle day has a lower shadow that indicates buying stepping in. Almost a Hammer but not quite. 2. The second day is like the first but on a smaller scale. 3. Day Three should be a Marubozu, no shadows. It is within the previous day’s trading range. Pattern Psychology After a down trend, the daily formations start indicating that buyers are becoming evident. The second day indicates the same message on a small scale. Day three brings movement to a slow process. The bears should now be concerned about their positions. New lows are diminishing rapidly. This gives enough time for the short sellers to start covering their positions.

Training Tutorial Candlestickforum Flash Cards These unique Flash Cards will allow you to be "trading like the Pro's" in no time. Return to Candlestick Explanation for Secondary Signals

Commodity trading software is less effective without candlestick signals

Commodity trading software is not very effective if price trends cannot be analyzed. Whether using commodity trading software for executions, or for an analysis of commodity trends, without candlestick signals the software becomes much less effective. Keep in mind, candlestick signals were developed while trading the most basic of commodities. Rice! Japanese Rice traders analyzed and observed signals that would reoccur in price trends. Through the centuries, reversal signals and continuation patterns were discovered to work very effectively. These patterns incorporated the recognition of consistent and predictable investor thought processes. Most computer trading software does not allow the instant determination of a reversal in a price trend. Learning how to use candlestick signals effectively will eliminate any use of commodity trading software. The analysis that can be provided by candlestick signals has one great benefit. The human mind can calculate what other outside influences might be affecting a commodity price. This is something that most commodity trading software cannot do. Being able to incorporate the knowledge that is provided by the candlestick signals while also interpreting what other outside influences may be doing to a price has huge benefits. Having the ability to analyze whether a reversal is occurring is the primary function of technical analysis. Most commodity trading software does not have the inherent analytical processes to consistently produce profitable trading

results. Utilizing candlestick signals puts the probabilities in the investor's favor. This analysis can be applied to all commodity trades as well as stock trades. Do not depend on commodity trading software. Learning how to use candlestick signals successfully will permit any investor to successfully trade in any market in any condition. Learn the signals! They have already been proven for over four centuries of studies providing a strong statistical base. ADVANCE BLOCK

Description The Advance Block is somewhat indicative as the Three White Soldiers but it is a bearish signal. Unlike the Three White Soldiers, having consistent long candles, the Advance Block shows signs of weakness. The bodies are diminishing as prices rise and the upper shadows becoming longer indicate that the bulls are getting more resistance from the bears. This pattern is going to occur in an up-trend or occurs during a bounce up in a downtrend. It is visually obvious that the rise is losing its power. Criteria 1. Each white candle occurs with higher closes. 2. The opens occur in the previous day’s body. 3. The bodies are getting smaller and/or the upper shadows are getting longer.

Commodity trading software is less effective without candlestick signals

Commodity trading software is not very effective if price trends cannot be analyzed. Whether using commodity trading software for executions, or for an analysis of commodity trends, without candlestick signals the software becomes much less effective. Keep in mind, candlestick signals were developed while trading the most basic of commodities. Rice! Japanese Rice traders analyzed and observed signals that would reoccur in price trends. Through the centuries, reversal signals and continuation patterns were discovered to work very effectively. These patterns incorporated the recognition of consistent and predictable investor thought processes. Most computer trading software does not allow the instant determination of a reversal in a price trend. Learning how to use candlestick signals effectively will eliminate any use of commodity trading software. The analysis that can be provided by candlestick signals has one great benefit. The human mind can calculate what other outside influences might be affecting a commodity price. This is something that most commodity trading software cannot do. Being able to incorporate the knowledge that is provided by the candlestick signals while also interpreting what other outside influences may be doing to a price has huge benefits. Having the ability to analyze whether a reversal is occurring is the primary function of technical analysis. Most commodity trading software does not have the inherent analytical processes to consistently produce profitable trading results. Utilizing candlestick signals puts the probabilities in the investor's favor. This analysis can be applied to all commodity trades as well as stock trades. Do not depend on commodity trading software. Learning how to use candlestick signals successfully will permit any investor to successfully trade in any market in any condition. Learn the signals! They have already been proven for over four centuries of studies providing a strong statistical base.

ADVANCE BLOCK

Description The Advance Block is somewhat indicative as the Three White Soldiers but it is a bearish signal. Unlike the Three White Soldiers, having consistent long candles, the Advance Block shows signs of weakness. The bodies are diminishing as prices rise and the upper shadows becoming longer indicate that the bulls are getting more resistance from the bears. This pattern is going to occur in an up-trend or occurs during a bounce up in a downtrend. It is visually obvious that the rise is losing its power. Criteria 1. Each white candle occurs with higher closes. 2. The opens occur in the previous day’s body. 3. The bodies are getting smaller and/or the upper shadows are getting longer.

Pattern Psychology After an up trend or a bounce up during a long downtrend, the Advance Block will show itself with an initial strong white candle day. However, unlike the Three White Soldiers, each proceeding day becomes less strong. If the bulls try to take the prices up, the bears step in and take them back down. After three days of waning strength, the bears should confirm the reversal with further deterioration.

Beginning investing in the stock market made easy with candlestick signals
Beginning investing in the stock market is usually an overwhelming process. Investors try to research a multitude of investment methods. Trying to single out an effective investing program can be very difficult. But, there is one investment method that makes beginning investing in the stock market very easy to understand. Candlestick signals! Candlestick signals incorporate one very simple element. They are formed by the cumulative knowledge of everybody that was buying or selling that trading entity during a specific time period. This makes beginning investing in the stock market much easier to comprehend. The candlestick signals have been a time-tested investment method, the results of centuries of observations. Japanese Rice traders became legendarily wealthy utilizing the information provided by candlestick reversal signals. Not only did the visual recognition of the signals become important, understanding why those signals were formed became invaluable information. Having the knowledge of why a reversal signal is forming provides the insights for understanding market trends. It allows an investor to eliminate the biggest hurdle for somebody beginning investing in the stock market. Emotions! Investment patterns in the market are easily recognized. Investors throughout the centuries and throughout the future centuries will have the same emotional based thought processes when it comes to investing. The fear and greed factor. Candlestick signals are clear visual graphic depictions of those emotions. Learning what the signals represent produces a huge advantage for the candlestick investor. Learning the 12 major signals and the secondary signals produces a tremendous benefit for anyone just beginning investing in the stock market. It greatly reduces learning the wrong investment techniques to which most new investors are exposed . Learn how to use the candlestick signals effectively and you'll have control of your investment future for the rest of your life.

Start your education beginning investing in the stockmarket with candlestick signals and their proper usage by reviewing the 12 Major Candlestick Patterns, all Secondary reversal signals, and the Continuation Patterns. Check back each week as we add new signals and patterns to continue your candlestick education. DELIBERATION

Description Another pattern close to the Three White Soldiers pattern is the Deliberation pattern. It is formed by two long white bodies. These are followed by a small white candle. This last candle may have opened at or near the previous day’s close or it may have gapped up. The Japanese say that this is the time for deliberation. The slow down in the advance is time for the bulls to get out.

Criteria 1. The first two white candles are relatively equal long candles. 2. The third day is a small body. 3. The small body opened at or very near the previous day’s close. Or it may have gapped up slightly.

Pattern Psychology After an up trend or a bounce up during a long downtrend, the deliberation signal can occur. Like the Advance Block signal, this pattern also represents buyer weakness. In this case, it shows the weakness in one day. This pattern is slightly more difficult to recognize than the Advance Block Pattern.

Candlestick Patterns Provide the Best Technical Analysis Tools
If you want the Best Technical Analysis Tools then you need to learn the simplicity of Japanese Candlesticks!!

The Candlestick Forum strives to provide the best technical analysis tools available over the internet. Stephen W. Bigalow, author of "High Profit Candlestick Patterns", explains the history and profitable trading techniques for the best technical analysis tools -- Japanese Candlesticks --for centuries of proven profitable results. Even investors new to trading, quickly identify price movements with a high degree of accuracy. due to the simplicity of candlesticks. Trading the stock market requires a great degree of discipline. Ask any trader what is the biggest obstacle they had to overcome. Repeatedly, the answer is letting go of a bad trade. Even the best technical analysis tools can not help you fight the urge to hold onto loosing trades. Candlestick Signals remove the emotional trading that cause good trades to go bad. The best technical analysis tools provide quick and easy methods for identifying price reversals, strong trends, weakening trends, and chart patterns ready to put money in your pocket. The 12 Major Candlestick Signals provide the best technical analysis tools you will ever need! Be sure to follow our Free Resources area for all the trading explanations of:

Major Candlestick Signals, These 12 Major Signals provide more profitable trades than most investors will ever need. However, it does not mean the remaining patterns should not be considered. The Candlestick Continuation Patterns, Identify periods of 'rest' in a trading entity. The Japanese insight is, 'there are times to buy, times to sell, and times to rest." Learning these continuation patterns will help investors know to place their money elsewhere. Finally, the Candlestick Reversal Signals, are highly effective patterns for identifying price reversals. An important element to any portfolio is the ability to identify when it is time to take profits, or close poor performing trades. This week we add the "Concealing Baby Swallow" for identifying reversal of a downtrend. CONCEALING BABY SWALLOW

Description The first two days of the signal, two Black Marubozus, demonstrate the continuation of the downtrend. The third day, the Reverse Hammer illustrates that the downtrend is losing steam. Notice that it gapped down on the open, then traded up into the previous days trading range. This demonstrated buying strength. The last day opens higher and closes below the previous days close. It completely engulfs the whole trading range of the prior day. Although the trading ended at the trends low point, the magnitude of the downtrend had deteriorated

significantly. Expect buying to show itself at these levels. This is a very rare signal.

Criteria 1. Two large Black Marubozus make up the beginning of this pattern. 2. The third day is a Reverse Hammer formation. It gaps down from the previous day’s close. 3. The final day completely engulfs the third day, including the shadow. Pattern Psychology The bears have been in control for awhile. At the end of a downtrend, two Black Marubozu days appear. The third day gaps down at its low, then trades up into the trading range of the previous day. This buying is then negated by the sellers stepping back in. However, the bears have taken notice of the buying that occurred. The final day opens higher, again causing much concern for the sellers. As it sells off for the rest of the day, the concerned shorts have time to cover their positions. The new closing low is not of the same magnitude of the previous down days of the trend. The buyers do not run into very much selling resistance from here.

Predicting Stock Market Trends
Why is it so difficult to predict stock market trends? Just look at two of the ‘indicators’ some investors use for predicting stock market trends. Some people put their faith in the “January Barometer”. A theory that the movement of the S&P 500 during the month of January sets the stock market trends for the year. If the S&P 500 is up at the end of January compared to the beginning of the month, expect the stock market to rise during the rest of the year.

Another prediction of stock market trends is based upon the Super Bowl indicator. An ‘urban legend”; claiming that if the winning team is from the AFC there will be a down market and if the winning team is from the NFC expect an up market. Now if this isn’t proof that stock market trends are based upon human behavior, I don’t know what is. Stock market trends are nothing more than the shifting of investor optimism. Since investor optimism is an expression of human emotion, it makes sense that we find clues in stock market trends by observing candlestick patterns. Japanese Candlesticks is the best technical indicator for predicting stock market trends. The Candlestick Forum helps investors recognize stock market trends by explaining how human weakness creates conditions resulting in predictable patterns. Candlestick signals visually illustrate investor sentiment, as the Homing Pigeon reversal pattern below.

HOMING PIGEON

Description The Homing Pigeon is the same as the Harami, except for the color of the second day's body. The pattern is composed of a two-candle formation in a down trending market. Both candles are the same color as the current trend. The first body of the pattern is a long body, the second body is smaller. The open and the close of the second day occurs inside the open and the close of the previous day. Its presence indicates that the trend is over.

Criteria 1. The body of the first candle is black; the body of the second candle is black. 2. The downtrend has been evident for a good period. A long black candle occurs at the end of the trend. 3. The second day opens higher than the close of the previous day and closes lower than the open but above the closing price of the prior day. 4. Unlike the Western Inside Day, just the body needs to remain in the previous day's body; where as the Inside Day requires both the body and the shadows to remain inside the previous day's body. 5. For a reversal signal, further confirmation is required to indicate that the trend is moving up. Signal Enhancements The higher the second candle closes up on the first black candle, the more convincing that a reversal has occurred. Pattern Psychology After a strong downtrend has been in effect and after a long black candle, the bulls open the price higher than the previous close. The shorts get concerned and start covering. The price finishes lower for the day but not as low as the previous day. This is enough support to have the short sellers take notice that the trend has been violated. A strong day after that would convince everybody that the trend was reversing. Usually the volume is above the recent norm due to the unwinding of short positions. Candlestick Forum Flash Cards These unique Flash Cards will allow you to be "trading like the Pro's" in no time. Return to Candlestick Explanati

Commodity Trading Trend Identified with Candlestick Reversal Signals
A commodity trading trend incorporates elements that make commodity trading easier than stocks. A commodity trading trend usually moves with more consistency than that of a stock trend. The reason is very simple. A commodity trading trend is usually influenced by very few factors. These factors are usually supply and demand or weather. Candlestick signals clearly define when investor sentiment is reversing in a commodity trading trend. Keep in mind, the candlestick signals were successfully developed in the most basic of commodity, RICE. Stock trends are influenced by many factors not directly related to the stock price itself. The market movement in general, interest rates, crude oil prices, and many other outside influences can change the direction of a stock price. A commodity trading trend is directly influenced by demand outpacing supply or vice versa. The demand versus supply can be clearly illustrated by the reversal signals in candlestick signals. Investor sentiment is directly affected by price. Candlestick signals become a very strong indicator for illustrating when investors anticipate the price is now meeting the demand requirement. This change of investor sentiment creates clear candlestick reversal signals. A commodity trading trend will show the same investor changes repeatedly. Learn to recognize the candlestick signals. It becomes extremely useful to have this knowledge for recognizing a change in a commodity trading trend as well as a stock trading trend. Although a stock trading trend may be more difficult to read as far as consistency, the candlestick signals still produce a high probability trend analysis. Each signal has been fully analyzed by Japanese Rice traders for centuries. This is the purest form of statistical analysis. The benefit of the candlestick signals is that they are actual working signals that have been utilized successfully. Having the knowledge that is incorporated in each of the reversal signals provide the investor with a huge advantage for trend analysis. An example of a trend reversal is outlined below in the "ladder bottom'.

LADDER BOTTOM

Description The downtrend is finishing with four consecutive black candles, each closing lower than the previous day. The fourth day is different. It opens and trades higher during the day, even though it closes the day on the low. The next day opens higher than the open of the previous day, a gap up, and continues to head up all day. The final day of the signal closes higher than the trading range of the past three days. Criteria 1. Like the Three Black Crows pattern, the beginning of the signal has three black candle days, each with lower opens and locses of the previous day. 2. The fourth day resembles a reverse hammer, opening, then trading up during the day before closing on its low. 3. The final day opens above the open of the previous day open, a gap up and continues upward for the rest of the day, a Kicker-type pattern. It finally closes above the trading range of the previous three days. Pattern Pasychology After a strong downtrend has been in effect for a while, there is a day when prices ty to climb back up to the previous day's high. This gets the bears attention even though it closes on the low that day. When it opens up much higher the next day, the bears start scrambling to cover and the bulls start taking control. If

volume increases noticeably on the final day, that will be a good indication that the bulls and the bears have exchanged their positioning.

Stockmarket Charting Techniques

The best stockmarket charting method is candlestick signals and patterns. There are a number of available stockmarket charting tools but candlestick signals are the quickest to learn. Considering the amount of time required to learn to read stockmarket charts why not choose to accelerate your education process with Japanese Candlestick charts. Charting, or ‘technical analysis’, involves interpreting the performance of stocks, currencies, commodities, and other financial data. The analysis of past performance should quickly identify signals or patterns to assist the investor on future price potential. That is why we focus on Japanese Candlesticks for a quick visual depiction of price projections based upon proven patterns. Using Candlestick Signals easily tells investors which stockmarket charts are poised for strong moves and which may remain relatively flat during the current market. Once an investor has identified these trades, it is a shorter process of elimination to determine which trade offers the best possible rate of return. Stop contributing to the purses of the professional money managers! Quit being on the wrong side of the trade. Don’t believe in the Holy Grail of trading strategies. Keep it simple – learn the 12 Major Candlestick Signals for reading stock chart patterns. You don’t need to hunt for ‘secret’ trading techniques. Professionals have used the Japanese Candlestick signals for many years to determine the stockmarket. We provide page, upon page, of free signal examples and trading

criteria. Additionally, Stephen Bigalow provides a free weekly Webinar to continue his commitment to the Candlestick Community. MATCHING LOW

Description The Matching Low pattern is similar to the Homing Pigeon patter, the exception being that the two days of the pattern close on their lows, at the same level. After a long downtrend, recognizing that the price has closed at the same level without going through is an indication to the bears that the bottom has been hit. Criteria 1. The body of the first candle is black; the blody of the second candle is black. 2. The downtrend has been evident for a good period. A long black candles occurs at the end of the trend. 3. The second day opens higher than the close of hte previous day and closes at the same close as the prior day. 4. For a reversal signal, further confirmation is required to indicate that the trend is moving up. Pattern Psychology After a strong downtrend has been in effect and after a long black candle, the bulls open the price higher than the previous close. The shorts get concerned and start covering. However, the bears sitll have enough control to close the

price at the low of the day, the low being the same as the close of the previous day. The psychological impact for hte bears is that it couldn't close below the previous close, thus causing concern that this is a support level.

Stockmarket Charting Techniques

The best stockmarket charting method is candlestick signals and patterns. There are a number of available stockmarket charting tools but candlestick signals are the quickest to learn. Considering the amount of time required to learn to read stockmarket charts why not choose to accelerate your education process with Japanese Candlestick charts. Charting, or ‘technical analysis’, involves interpreting the performance of stocks, currencies, commodities, and other financial data. The analysis of past performance should quickly identify signals or patterns to assist the investor on future price potential. That is why we focus on Japanese Candlesticks for a quick visual depiction of price projections based upon proven patterns. Using Candlestick Signals easily tells investors which stockmarket charts are poised for strong moves and which may remain relatively flat during the current market. Once an investor has identified these trades, it is a shorter process of elimination to determine which trade offers the best possible rate of return. Stop contributing to the purses of the professional money managers! Quit being on the wrong side of the trade. Don’t believe in the Holy Grail of trading strategies. Keep it simple – learn the 12 Major Candlestick Signals for reading stock chart patterns. You don’t need to hunt for ‘secret’ trading techniques. Professionals have used the Japanese Candlestick signals for many years to determine the stockmarket. We provide page, upon page, of free signal examples and trading

criteria. Additionally, Stephen Bigalow provides a free weekly Webinar to continue his commitment to the Candlestick Community. MATCHING LOW

Description The Matching Low pattern is similar to the Homing Pigeon patter, the exception being that the two days of the pattern close on their lows, at the same level. After a long downtrend, recognizing that the price has closed at the same level without going through is an indication to the bears that the bottom has been hit. Criteria 1. The body of the first candle is black; the blody of the second candle is black. 2. The downtrend has been evident for a good period. A long black candles occurs at the end of the trend. 3. The second day opens higher than the close of hte previous day and closes at the same close as the prior day. 4. For a reversal signal, further confirmation is required to indicate that the trend is moving up. Pattern Psychology After a strong downtrend has been in effect and after a long black candle, the bulls open the price higher than the previous close. The shorts get concerned and start covering. However, the bears sitll have enough control to close the

price at the low of the day, the low being the same as the close of the previous day. The psychological impact for hte bears is that it couldn't close below the previous close, thus causing concern that this is a support level.

Learning to Invest in the Stock Market Using the Bullish Engulfing Signal
Learning to invest in the stock market is a difficult process. There are multitudes of sources that will give their opinions on how to invest. For the person that is just learning to invest in the stock market, the massive amount of information can be overwhelming. Becoming educated in investing should be narrowed down to one basic premise. What investment programs should I utilize that fit my investment risk factors? Learning to invest in the stock market not only includes finding an investment program that fits ones investment nature, but also finding a program that produces the results an investor expects. Utilizing candlestick signals makes learning to invest in a stock market much easier to understand. The 12 major signals found in candlestick analysis not only reveal high probability reversal situations but understanding the psychology that formed those signals makes understanding why reversals occur much easier to comprehend. One of the fastest and easiest processes for learning to invest in the stock market is learning the candlestick signals. Each major signal provides an immense amount of information. A Bullish Engulfing signal is one of the major signals. When the elements out of a Bullish Engulfing signal are broken down, an investor can clearly understand what was going on in investor sentiment to cause a reversal. 400 years of observations from Japanese Rice traders has recognized the Bullish Engulfing signal as a very high probability reversal signal.

BULLISH ENGULFING PATTERN

Description The Engulfing pattern is a major reversal pattern comprised of two opposite colored bodies. The Bullish Engulfing Pattern formed after a downtrend. It opens lower that the previous day’s close and closes higher than the previous day’s open. Thus, the white candle completely engulfs the previous day’s black candle. Criteria 1. The body of the second day completely engulfs the body of the first day. Shadows are not a consideration. 2. Prices have been in a definable down trend, even if it has been short term. 3. The body of the second candle is opposite color of the first candle, the first candle being the color of the previous trend. The exception to this rule is when the engulfed body is a doji or an extremely small body. Signal Enhancements 1. A large body engulfing a small body. The previous day shows the trend was running out of steam. The large body shows that the new direction has started with good force.

2. When the engulfing pattern occurs after a fast move down, there will be less supply of stock to slow down the reversal move. A fast move makes a stock price over extended and increases the potential for profit taking. 3. Large volume on the engulfing day increases the chances that a blowoff day has occurred. 4. The engulfing body engulfs the body and the shadows of the previous day, the reversal has a greater probability of working. 5. The greater the open gaps down from the previous close, the greater the probability of a strong reversal. Pattern Psychology After a downtrend has been in effect, the price opens lower than where it closed the previous day. Before the end of the day, the buyers have taken over and moved the price above where it opened the day before. The emotional psychology of the trend has now been altered.

Learning About the Stock Market Using The Hammer Signal

Learning about the stock market for personal stock market investing can be very costly if not approached in the right manner. Attributes built into candlestick charts greatly reduce the potential of losses while learning about the stock market. The knowledge conveyed in just one of the 12 major signals helps investors understand the dynamics of what makes price move. This is true for investors that are just learning about the stock market all the way up to experienced traders. The candlestick charts are in use today because they have worked effectively throughout the centuries. Japanese Rice traders recognized that investor sentiment operates in reoccurring patterns. They recognized candlestick charts provided patterns that would reoccur as a trend was about

ready to reverse. This became valuable information. The psychological elements that are incorporated into the major candlestick signals makes learning about the stock market easier and more profitable. Out of a universe of 50 to 60 candlestick reversal signals, it has been found that only 12 of the signals require attention. These 12 major signals will provide more trade situations than most investors will be able to utilize. The insights gained from dissecting each of the 12 major signals becomes a valuable tool for learning about the stock market. The common complaint for most investors learning to read candlestick charts was there were too many candlestick signals. When learning the stock market, an investor wants a proven investment technique. Candlestick charts produces a very strong trading platform the candlestick signals have proven themselves to work. The question is not whether they work or not, the question is whether somebody can learn how to use them correctly. The Candlestick Forum is a stock market education site that takes candlestick charts and individual candlestick signals and reduces the information down to the basic elements. If each signal is dissected and studied, the information that the signal conveys will become a powerful investment tool for the rest of your life. The knowledge presented in Candlestick Charts makes learning the stock market, or any other trading market, much easier to understand. Each signal provides an immense amount of information. One of the most visually compelling signals is the Hammer signal. The hammer signal is easily recognized by the lower shadow ( the tail ) protruding to the downside after an extended downtrend.

HAMMERS AND HANGING MAN

Description The Hammer is comprised of one candle. It is easily identified by the presence of a small body with a shadow at least two times greater than the body. Found at the bottom of a downtrend, this shows evidence that the bulls started to step in. The color of the small body is not important but a white candle has slightly more bullish implications than the black body. A positive day is required the following day to confirm this signal. Criteria 1. The lower shadow should be at least two times the length of the body. 2. The real body is at the upper end of the trading range. The color of the body is not important although a white body should have slightly more bullish implications. 3. There should be no upper shadow or a very small upper shadow. 4. The following day needs to confirm the Hammer signal with a strong bullish day.

Signal Enhancements 1. The longer the lower shadow, the higher the potential of a reversal occurring.

2. A gap down from the previous day's close sets up for a stronger reversal move provided the day after the Hammer signal opens higher. 3. Large volume on the Hammer day increases the chances that a blow off day has occurred. Pattern Psychology After a downtrend has been in effect, the atmosphere is very bearish. The price opens and starts to trade lower. The bears are still in control. The bulls then step in. They start bringing the price back up towards the top of the trading range. This creates a small body with a large lower shadow. This represents that the bears could not maintain control. The long lower shadow now has the bears questioning whether the decline is still intact. A higher open the next day would confirm that the bulls had taken control. Training Tutorials The Major Signals Educational Package has over 8 Hours of training for trading Candlestick Signals or The Hammer individual training video available for Quick Download. Candlestick Forum Flash Cards These unique Flash Cards will allow you to be "trading like the Pro's" in no time. years of observations have resulted in reversal signals that are easy to identify. When learning how the stock market works for novices, it is very important to find indicators that have a high probability of producing profits and a low probability of producing losses. This may be stating the obvious. However, the utilization of candlestick signals is being done by a very small percentage of the investment population. Use the major signals to start profiting from your investment decisions immediately. The Hanging Man produces some very important attributes when analyzing a potential reversal. It is considered one of the 12 major signals. Learn how to use a Hanging Man signal correctly. The probabilities of being in a correct trade when utilizing this signal becomes extremely high.

Stock market tips make investing a hit or miss proposition. The candlestick signals produce high probability situations.
Stock market tips are usually the demise of most investors. The dream of most investors is to find the stock market tips that are going to make them wealthy. Unfortunately, that does not happen. Depending upon stock market tips will lead most investors into a demoralizing method of investing. Consider the factors that surround stock market tips. The information is usually relatively old by the time it reaches the ordinary investor. If the stock market tips are coming from an acclaimed guru of a stock market, it has probably been well positioned into accounts before the general public is made aware of the recommendation. What you do when executing stock market tips? That should be the first question. Most stock market tips emphasize getting into the position as quickly as possible. Whatever great things are going to happen in the stock price are going to happen soon. Stock market tips are not representative of an intelligent investment strategy. Investing involves implementing a program where an investor can continue to improve return results. Candlestick signals provide the format for establishing consistent investment returns. The major problem that comes from putting funds into everybody's stock market tips is very simple to understand. If that particular investment situation does not perform as expected, the investor is right back where they started. They do not have a viable investment strategy. Candlestick signals, on the other hand, are based upon high probability situations. Establishing a position based upon one of the major candlestick signals allows an investor to evaluate when to get into a position and when to get out of a position. The signals are the result of many centuries of observations. If the statistical results of the major candlestick signals were not proven, we would not be looking at them today. The psychology built into a major signal is simple common sense investment philosophy. As demonstrated in the piercing signal, the Japanese Rice traders have a high expectation of what the result should be. Having this knowledge makes investment programs very easy to implement.

PIERCING PATTERN

Description The Piercing Pattern is composed of a two-candle formation in a downtrending market. The first candle is black, a continuation of the existing trend. The second candle is formed by opening below the low of the previous day. It closes more than midway up the black candle, near or at the high for the day Criteria 1. The body of the first candle is black; the body of the second candle is white. 2. The downtrend has been evident for a good period. A long black candle occurs at the end of the trend. 3. The second day opens lower than the trading of the prior day. 4. The white candle closes more than halfway up the black candle. Signal Enhancements 1. The longer the black candle and the white candle, the more forceful the reversal. 2. The greater the gap down from the previous days close, the more pronounced the reversal. 3. The higher the white candle closes into the black candle, the stronger the reversal. 4. Large volume during these two trading days is a significant confirmation.

Pattern Psychology After a strong downtrend has been in effect, the atmosphere is bearish. Fear becomes more predominant. The prices gap down. The bears may even push the prices down further. However, before the end of the day, the bulls step in and dramatically turn prices around. They finish near the high of the day. The move has almost negated the price decline of the previous day. This now has the bears concerned. More buying the next day will confirm the move. Being able to utilize information that has been used successfully in the past is a much more viable investment strategy than taking shots in the dark. Keep in mind, when you are given privileged information about stock market tips, where you are in the food chain. Are you one of those privileged few that gets top-notch pertinent information on a timely manner, or you one of the masses that feed into a frenzy and allow the smart money to make the profits? Training Tutorial The Piercing Pattern Remarkable results have been observed with this signal. This 35 minute video provides a clear understanding of what this signal indicates and how to trade it for profit. Candlestick Forum Flash Cards These unique Flash Cards will allow you to be "trading like the Pro's" in no time.

Technical analysis courses should utilize the candlestick signals
Technical analysis courses usually educate investors with masses of amounts of information. Technical analysis courses are usually directed towards providing numerous analytical techniques. Unfortunately, many of these techniques are not crucial for pinpointing investment information. Most technical analysis courses instruct investors on watching indicators that other investors usually watch. The benefit of utilizing candlestick signals is being able to instantly

evaluate what investor sentiment is doing at those levels that everybody else is watching. The information that is built into candlestick signals reveal immediately what investment sentiment is doing. If a candlestick buy signal occurs right on a major technical level, a level that many other investors are watching, the candlestick investor has the advantage of visually seeing the confirmation immediately of that level. Other investors may require confirmation that comes in the form of additional buying. That is a benefit to the candlestick investor. They can get in before the rest of the technical investors get in. There are many good technical analysis courses available. Click here to view Intelyze training course. An investor that is planning to take technical analysis courses should learn candlestick signals before hand. This knowledge will make any technical analysis courses much easier to comprehend. The 12 major candlestick signals provide an immense amount of technical information. Learning the stock market becomes much easier when utilizing the correct analytical tools. Applying the candlestick information to any information learned in technical and analysis courses will dramatically speed the positive results to investors accounts. Learn each of the major signals . The information that is conveyed in each one of the signals provides insights into price trends not found in most technical analysis courses. The candlestick signals should be the basis of an investors analytical toolbox. The Dark Cloud signal is a signal that tells an obvious reversal of a trend. It is name because it looks like a dark cloud over a nice bright sunny uptrend.

DARK CLOUD COVER

Description The dark Cloud Cover is the bearish counterpart to the Piercing pattern. The first day of the pattern is a long white candle at the top end of a trend. The second day’s open is higher that the high of the previous day. It closes at least one-half way down the previous day candle, the further down the white candle, the more convincing the reversal. Remember that a close at or below the previous day’s open turns this pattern into a Bearish Engulfing pattern. Kabuse means to get covered or to hang over. Criteria 1. The body of the first candle is white, the body of the second candle is black. 2. The up-trend has been evident for a good period. A long white candle occurs at the top of the trend. 3. The second day opens higher than the trading of the prior day. 4. The black candle closes more than half-way down the white candle. Signal Enhancements 1. The longer the white candle and the black candle, the more forceful the reversal. 2. A higher the gap up from the previous days close, the more pronounced the reversal. 3. The lower the black candle closes into the white candle, the stronger the reversal. 4. Large volume during these two trading days is a significant confirmation

Pattern Psychology After a strong up-trend has been in effect, the atmosphere is bullish. Exuberance sets in. They gap the price up. The bears start to show up and push the price back down. It finally closes at or near the lows for the day. The close has negated most of the previous days gains. The bulls are now concerned. They obviously see that the uptrend may have stopped. This signal makes for a good short, with a stop being the high of the black candle day. Notice that if the Dark Cloud Cover were to close lower, below the open of the previous day, it becomes a Bearish Engulfing pattern. The Bearish Engulfing pattern has slightly stronger bearish implications. Using candlesticks signals with other technical analysis greatly enhances the ability to recognize what the candlestick charts are revealing. Use of valuable information provided in the 12 major signals. They will benefit you for the rest of your investment career.

Stock market strategies use candlestick formats for high profits
How to Trade the Bullish Harami. Most stock market strategies involve complicated approaches and formulas. Candlestick analysis provides a platform for making stock market strategies very simple to implement. Unfortunately, most investors put money into the markets without any concern for stock market strategies. This not only skews many investors investment perceptions, it also delays the process for how to learn to trade the stock market correctly. Stock market strategies should be incorporated into an investors learning process from the very beginning. Candlestick signals provide the information that can put investors on the right track from the beginning. Taking advantage of the investor knowledge incorporated into candlestick signals allows an investor to eliminate bad habits. Stock market strategies should involve investment programs that put the probabilities of being in a correct trade in an investor's favor. To simplify the

process, if an investor merely learns the 12 major candlestick signals, the correct investor habits will be much easier to implement. Successful stock market strategies involve investment practices that can be accounted for and constantly improve. The 12 major candlestick signals provide a framework for establishing a high probability trades. They also convey to an investor when the investor sentiment is not working properly. Most stock market strategies pay little attention to procedures on losing trades. The candlestick signals provide an expected result. When they do not occur, losses can be cut short . Funds can then be moved on to high probability situations. Utilizing the 12 major signals establishes a knowledge base for what should happen in the future. Knowing the investor sentiment that developed the signals provides a much better insight for investors to determine successful trade situations. The Bullish Harami is an example of visual statistic analysis. Upon witnessing a bullish Harami at the end of a downtrend, an investor has a good idea of what to expect. This major signal becomes a vital information packed analytical tool.

HARAMI
BULLISH HARAMI

Description The Harami is an often seen formation The pattern is composed of a two candle formation in a down-trending market. The body of the first candle is the same color as the current trend. The first body of the pattern is a long body, the second body is smaller. The open and the close occur inside the open and the close of the previous day. It’s presence indicates that the trend is over. The Japanese definition for Harami is pregnant woman or body within. The first candle is black, a continuation of the existing trend. The second candle, the little belly sticking out, is usually white, but that is not always the case. The location and size of the second candle will influence the magnitude of the reversal. Criteria 1. The body of the first candle is black, the body of the second candle is white. 2. The downtrend has been evident for a good period. A long black candle occurs at the end of the trend. 3. The second day opens higher than the close of the previous day and closes lower than the open of the prior day 4. Unlike the Western "Inside Day", just the body needs to remain in the previous days body, where as the "Inside Day" requires both the body and the shadows to remain inside the previous days body.

For a reversal signal, further confirmation is required to indicate that the trend is now moving up. Signal Enhancements 1. The longer the black candle and the white candle, the more forceful the reversal. 2. The higher the white candle closes up on the black candle, the more convincing that a reversal has occurred despite the size of the white candle. Pattern Psychology After a strong down-trend has been in effect and after a selling day, the bulls open the price a higher than the previous close. The shorts get concerned and start covering. The price finishes higher for the day. This is enough support to have the short sellers take notice that the trend has been violated. A strong day the next day would convince everybody that the trend was reversing. Usually the volume is above the recent norm due to the unwinding of short positions.

Learning the 12 major signals makes the analysis of market trends and price trends very easy. They use of candlestick charts greatly enhances the speed in which somebody can analyze a trend correctly. The candlestick patterns are graphic statistical analysis. Japanese Rice traders have successfully use the signals for centuries. Learning how to invest in the stock market becomes much easier when you got the probabilities put in your favor.

Commodity Trading with Candlestick Signals and the Bearish Harami
Commodity trading principles are the basic elements incorporated in the candlestick signals. Commodity trading principles are easier to analyze than

stock trades. This is derived from one simple factor. Commodity trading principles are based upon supply and demand. Whereas stock analysis involves a multitude of external factors that can affect a price, commodity trading principles relied mostly upon the perception of supply and demand. This creates a much smoother trend analysis than stock prices. Candlestick signals were developed on the most basic commodity trading principles. 400 years of investor observations occurred while trading Rice, one of the most basic commodities. Over the past four centuries, the 50 or 60 candlestick signals became recognized. Of these, 12 signals were found to occur a majority of the time. Their appearance also indicated extremely high probability reversal situations. These 12 signals are now considered the major candlestick signals. Learning these signals allows an investor to gain valuable insights into investor sentiment. Understanding the investor psychology that formed the major signals is the basis for fully understanding commodity trading principles. The facets of supply and demand do not immediately change commodity prices. The perception of what supply and demand forces may be doing is what changes commodity prices. Candlestick signals are the graphic depiction of those reversals in investor sentiment. Understanding the factors that go into a candlestick signal formation makes understanding commodity trading much easier to comprehend. You can follow Stephen Bigalow's live futures and commodity trading account. The Bearish Harami is one of the major signals that exhibits common sense into graphic depiction. Candlestick analysis provides a clear understanding of what happens to investor sentiment at the reversal areas. The elements that create a Bearish Harami produce clear insights into what was going on in investor minds at a reversal.

BEARISH HARAMI

Description The Bearish Harami is the exact opposite of the Bullish Harami. The pattern is composed of a two-candle formation. The body of the first candle is the same color as the current trend. The first body of the pattern is a long body; the second body is smaller. The open and the close occur inside the open and the close of the previous day. Its presence indicates that the trend is over. Criteria 1. The body of the first candle is white; the body of the second candle is black. 2. The uptrend has been apparent. A long white candle occurs at the end of the trend. 3. The second day opens lower than the close of the previous day and closes higher than the open of the prior day. 4. For a reversal signal, confirmation is needed. The next day should show weakness. Signal Enhancements
1. The longer the white candle and the black candle, the more forceful the reversal.

2. The lower the black candle closes down on the white candle, the more convincing that a reversal has occurred, despite the size of the black candle.

Pattern Psychology After a strong uptrend has been in effect and after a long white candle day, the bears open the price lower than the previous close. The longs get concerned and start profit taking. The price finishes lower for the day. The bulls are now concerned as the price closes lower. It is becoming evident that the trend has been violated. A weak day after that would convince everybody that the trend was reversing. Volume increases due to the profit taking and the addition of short sales. Having insight ito the effect of Haramis provides an opportunity to maximize returns. If all of your investment funds are being fully used, a Harami may reveal that one of the positions has stalled for a few days. An aggressive trader may want to move those funds to a better trade, and then come back after a few days to reinvest once the position is moving.

Stock Market Advice for Trading The Morning Star Signal
Stock market advice is plentiful over the internet. There is sage stock market advice like; Don't try to time the market, use cost averaging, diversify, and limitless tid-bits but they do not teach you anything about trading. What good is stock market advice if you still don't know how to read a stock chart? The Candlestick Forum provides practical stock market advice by continued "How To Trade" articles for identifying specific candlestick charts. This article will help you to identify The Morning Star signal and the trading criteria used for successful implementation. We hope these articles are helping you along your way to successful stock market trading. Be sure to join Stephen Bigalow live over the internet for his free Thursday evening Chat Sessions.

MORNING STAR

Description The Morning Star is a bottom reversal signal. Like the planet Mercury, the morning star, it foretells that brighter things - sunrise, is about to occur, or that prices are going to go higher. It is formed after an obvious downtrend. It is made by a long black body, usually one of the fear-induces days at the bottom of a long decline. The following day gaps down. However, the magnitude of the trading range remains small for the day. This is the star of the formation. The third day is a white candle day. And represents the fact that the bulls have now stepped in and seized control. The optimal Morning Star signal would have a gap before and after the star day. The make up of the star, an indecision formation, can consist of a number of candle formations. The important factor is to witness the confirmation of the bulls taking over the next day. That candle should consist of a closing that is at least halfway up the black candle of two days prior. Criteria 1. The downtrend has been apparent. 2. The body of the first candle is black, continuing the current trend. The second candle is an indecision formation. 3. The third day shows evidence that the bulls have stepped in. That candle should close at least halfway up the black candle. Signal Enhancements

1. The longer the black candle and the white candle, the more forceful the reversal. 2. The more indecision that the star day illustrates, the better probabilities that a reversal will occur. 3. A Gap between the first day and the second day adds to the probability that a reversal is occurring. 4. A gap before and after the star day is even more desirable. 5. The magnitude, that the third day comes up into the black candle of the first day, indicates the strength of the reversal. Pattern Psychology A strong downtrend has been in effect. The sellers start getting panicky. There is a large sell-off day. The next day as the selling continues, bulls are stepping in at the low prices. If there is big volume during these days, it shows that the ownership has dramatically changed hands. The second day does not have a large trading range. The third day the bears start to lose conviction as the bull increase their buying. When the price starts moving back into the trading range of the first day, the sellers diminish and the buyers seize control. Training Tutorial The Morning Star & Evening Star Signals This 56 minute video provides a clear understanding for trading and maximizing your profits.

Investing stock market advice using the Evening Star Candlestick signal
So you want investing stock market advice and naturally you begin with a 'Google' search. But, this returns 56,700,000 pages for your review. Where do you begin? Do you really want to plow through all those pages and be bombarded with "buy this" or "register here for investing stock market advice"? Internet sites are a business, and we are no exception, but what happened to all the great 'free' material the internet is supposed to provide? The Candlestickforum continues it's commitment to provide free stock market advice.

We hope you are following our 'Candlestick Images and Explanations'. Each week we add another candlestick signal where we provide a graphic illustration of candlestick chart signals with descriptions for recognizing the candlestick signal, the trading criteria with signal enhancements and the pattern psychology behind the signal. We back up our promise to provide free stock market advice. Every Thursday evening Stephen Bigalow presents a live stock chat session over the internet. Absolutely FREE, no registration needed, come join us and you will find the investing stock market advice you have been looking for. Now for the free advice we promised.... EVENING STAR ( Sankawa Yoi No Myojyo )

Description The Evening Star pattern is a top reversal signal. It is exactly the opposite of the Morning Star signal. Like the planet Venice , the evening star, it foretells that darkness is about to set or that prices are going to go lower. It is formed after an obvious uptrend. It is made by a long white body occurring at the end of an uptrend., usually when the confidence has finally built up. The following day gaps up, yet the trading range remains small for the day. Again, this is the star of the formation. The third day is a black candle day and represents the fact that the bears have now seized control. That candle should consist of a closing that is at least halfway down the white candle of two days prior. The optimal Evening Star signal would have a gap before and after the star day. Criteria

1. The uptrend has been apparent. 2. The body of the first candle is white, continuing the current trend. The second candle is an indecision formation. 3. The third day shows evidence that the bears have stepped in. That candle should close at least halfway down the white candle. Signal Enhancements 1. The longer the white candle and the black candle, the more forceful the reversal. 2. The more indecision that the star day illustrates, the better probabilities that a reversal will occur. 3. A gap between the first day and the second day adds to the probability that a reversal is occurring. 4. A gap before and after the star day is even more desirable. The magnitude, that the third day comes down into the white candle of the first day, indicates the strength of the reversal. Pattern Psychology A strong uptrend has been in effect. The buyers can't imagine anything going wrong, they are piling in. However, it has now reached the prices where sellers start taking profits or think the price is fairly valued. The next day all the buying is being met with the selling, causing for a small trading range. The bulls get concerned and the bears start taking over. The third day is a large sell off day. If there is big volume during these days, it shows that the ownership has dramatically changed hands. The change of direction is immediately seen in the color of the bodies. Training Tutorial The Morning Star & Evening Star Signals This 56 minute video provides a clear understanding for trading and maximizing your profits.

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What is the Strongest Candlestick Signal? The Kicker Signal!
What is the strongest candlestick signal? The Kicker signal! It demonstrates a severe change an investor sentiment. A good rule of thumb is that if an investor sees a Kicker signal, he/she should go long or short depending on whether it is a Bullish Kicker or a Bearish Kicker. And that is exactly what we saw happen today in the NASDAQ index. The Bearish Kicker signal, especially with the stochastics in the overbought area, indicates that we want to be out of our long positions, either sitting in cash or shorting the market. KICKER SIGNAL ( Keri Ashi )

Description The Kicker signal is the most powerful signal of all. It works equally well in both directions. Its relevance is magnified when occurring in the overbought or oversold area. It is formed by two candles. The first candle opens and moves in the direction of the current trend. The second candle opens at the same open of the previous day, a gap open, and heads in the opposite

direction of the previous day’s candle. The bodies of the candles are opposite colors. This formation is indicative of a dramatic change in investor sentiment. The candlesticks visually depict the magnitude of the change. Criteria 1. The first day’s open and the second day’s open are the same. The price movement is in opposite directions from the opening price. 2. The trend has no relevance in a Kicker situation. 3. The signal is usually formed by surprise news before or after market hours. 4. The price never retraces into the previous day's trading range. Signal Enhancements 1. The longer the candles, the more dramatic the price reversal. 2. Opening from yesterday’s close to yesterday’s open already is a gap. However, gapping away from the previous day’s open further enhances the reversal. Pattern Psychology The Kicker signal demonstrates a dramatic change in the investor sentiment. Something has occurred to violently change the direction of the price. Usually a surprise news item is the cause of this type of move. The signal illustrates such a change in the current direction that the new direction will persist with strength for a good while. There is one caveat to this signal. If the next day prices gap back the other way, liquidate the trade immediately. This does not happen very often, but when it does, get out immediately.

Stock Market Information on How to Trade the Shooting Star Signal
There is no shortage of stock market information, whether you are researching the internet or the book stores. Be prepared to be flooded with material covering stock market information. The biggest decision is how to go about selecting which materials to start reading. Do you want to learn about day-trading? Are you

more interested in learning options, or trading commodities? Maybe you want to be better educated to discuss your portfolio with your Broker. How do you know if the stock market information you are reviewing was written by someone qualified in the subject? Perhaps you will allow us to narrow the field a bit. Stephen Bigalow is not only the author of 'High Profit Candlestick Patterns', and 'Profitable Candlestick Trading', but He Trades For A Living! The same information he teaches throughout this website, and in all his training products, is the same information he uses every day to make his own trading decisions. He contributes new articles each week to aid other investors on the advantage of combining candlestick signals and how to read candlestick charts. We hope you enjoy the following training information for the Shooting Star Signal. For additional articles on trading individual candlestick signals please begin with Candlestick Images and Explanations. The Shooting Star

Description The Shooting Star is comprised of one candle. It is easily identified by the presence of a small body with a shadow at least two times greater than the body. It is found at the top of an uptrend. The Japanese named this pattern because it looks like a shooting star falling from the sky with the tail trailing it.

Criteria 1. The upper shadow should be at least two times the length of the body.

2. The real body is at the lower end of the trading range. The color of the body is not important although a black body should have slightly more bearish implications. 3. There should be no lower shadow or a very small lower shadow. 4. The following day needs to confirm the Shooting Star signal with a black candle or better yet, a gap down with a lower close.

Signal Enhancements 1. The longer the upper shadow, the higher the potential of a reversal occurring. 2. A gap up from the previous day's close sets up for a stronger reversal move provided. 3. The day after the Shooting Star signal opens lower. 4. Large volume on the Shooting Star day increases the chances that a blow-off day has occurred although it is not a necessity. Pattern Psychology After a strong up-trend has been in effect, the atmosphere is bullish. The price opens and trades higher. The bulls are in control. But before the end of the day, the bears step in and take the price back down to the lower end of the trading range, creating a small body for the day. This could indicate that the bulls still have control if analyzing a Western bar chart. However, the long upper shadow represents that sellers had started stepping in at these levels. Even though the bulls may have been able to keep the price positive by the end of the day, the evidence of the selling was apparent. A lower open or a black candle the next day reinforces the fact that selling is going on.

Learning how to play the stock market using candlestick signals
The Inverted Hammer Signal

Learning how to play the stock marketis an endeavor that most investors never master. Learning how to play the stock market involves controlling one's emotions. Candlestick signals are a great benefit for the beginning investor as well as the experienced trader. The information conveyed in the major candlestick signals is the visual depiction of investor sentiment. Most investors' sentiment unfortunately involves the extremes of human emotions, fear and greed. Learning how to play the stock market is an educational process. An investor should learn the basics of why prices move. The candlestick signals, especially the 12 major signals, involve the visual elements produced by human emotions. Being able to correctly analyze what these emotions are doing at specific points of a trend become a valuable pool for successful investing. The information incorporated into a major candlestick signal provides a huge advantage for those investors just learning how to play the stock market. The result of simple visual analysis permits an investor to take advantage of high probability situations. The major signals are created by the aspects of human emotions being put into trading decisions. Investor psychology produces reoccurring thought processes as investors go through different stresses of a price trend. The 12 major signals are a very important tool when learning how to play the stock market. Understanding the investment psychology that creates each signal is an important element for understanding how professional investors think. One of the most important facets for learning how to play the stock market is knowing how to put the probabilities in your favor. The candlestick signals create a format that does just that. Hundreds of years of observations have resulted in reversal signals that are easy to identify. When learning how to play the stock market, it is very important to find indicators that have a high probability of producing profits and a low probability of producing losses. This may be stating the obvious. However, the utilization of candlestick signals is being done by a very small percentage of the investment population. Use the major signals to start profiting from your investment decisions immediately. The Inverted Hammer produces some very important attributes when analyzing a potential reversal. It is considered one of the 12 major signals. Learn how to

use an inverted hammer signal correctly. The probabilities of being in a correct trade when utilizing this signal becomes e

Description The Inverted Hammer is comprised of one candle. It is easily identified by the small body with a shadow at least two times greater than the body. Found at the bottom of a downtrend, this shows evidence that the bulls are stepping in, but the selling is still going on. The color of the small body is not important but the white body has more bullish indications than a black body. A positive day is required the following day to confirm this signal. Criteria 1. The upper shadow should be at least two times the length of the body. 2. The real body is at the lower end of the trading range. The color of the body is not important, although a white body should have slightly more bullish implications. 3. There should be no lower shadow, or a very small lower shadow. Signal Enhancements 1. The longer the upper shadow, the higher the potential of a reversal occurring. 2. A gap down from the previous day's close sets up for a stronger reversal move. 3. The day after the inverted hammer signal opens higher. 4. Large volume on the day of the inverted hammer signal increases the chances that a blowoff day has occurred. Pattern Psychology

After a downtrend has been in effect, the atmosphere is bearish. The price opens and starts to trade higher. The Bulls have stepped in, but they cannot maintain the strength. The exisiting sellers knock the price back down to the lower end of the trading range. The Bears are still in control. But the next day, the Bulls step in and take the price back up without major resistance from the Bears. If the price maintains strong after the Inverted Hammer day the signal is confirmed.

Training Tutorials The Major Signals Educational Package has over 8 Hours of training for trading Candlestick Signals or The Inverted Hammer individual training video available for Quick Download. Candlestick Forum Flash Cards These unique Flash Cards will allow you to be "trading like the Pro's" in no time.

Western and Japanese Technical Stock Terms
GLOSSARY
The following is a list of terms used in association with Japanese Candlestick Analysis. Some terms are purely of Western origin; others are purely of Japanese origin. Many are used for description in both Western and Japanese techniques, becoming intermingled through the years. Bar Charts The conventional graphic depiction of price activity. The trading range is illustrated with a vertical line representing the high to low prices during a time period. Open price is shown by a short horizontal line attached to the left side of a vertical line, the close is a horizontal line to the right side. Price is represented on the vertical scale of the chart. Time is represented on the horizontal scale

Blow-offs

A topping or bottoming action. Occurring at the end of an extended move. Prices move sharply and rapidly in the direction of the current trend on high volume. If the price reverses direction after this movement, a blow-off has occurred. Breakaway gap When prices gap away from a technically defined area, such as a congestion area or a trendline. Breakout The movement that pushes through a resistance level or a support level. Confirmation When a move or an indicator substantiates the anticipated action resulting from another indicator. Congestion area Trading activity where the price movement stays within an observable trading range for an extended period of time. Consolidation Trading in a range of the congestion area with the implication that the trend is resting and will resume the direction of the current trend. Continuation patterns A pattern that has been observed to indicate that the current trend will continue. Dead cross When short-term moving averages cross under the longer-term moving averages and a bearish signal is given. Deliberation pattern Also known as a stalling pattern, prices are coming to a point of a reversal. Divergence The disparity between indicators when a price action has made a move. One indicator confirms that the move was correct, the other shows the opposite. For example, if prices hit high and the relative strength index does not, a divergence has occurred.

Double bottoms

An easily recognized technical pattern illustrated by a W-shaped bottom where prices reverse at approximately the same lows. Double tops Price movement that resembles an M where the highs are approximately the same. Downgap Prices gap down in the next time period to levels below the total trading range of the previous time period. Downtrend Prices trading lower usually represented by lower lows and/or lower highs. Elliot wave Ralph Nelson Elliot developed a system for forecasting price movements based upon oscillations in investor sentiment. The basis of the theory revolves around five waves in a general direction (five-wave upmove) followed by three corrective waves in the opposite direction (three-wave downmove). Exponential moving average A moving average calculated by exponentially weighted input. Fibonacci numbers The series of numbers that are derived by adding the two previous numbers to obtain the next number. That number added to the previous number results in the next number. The series of numbers produces ratios used extensively by Elliot wave advocates, 38 percent, 50 percent, and 62 percent. Filling the Gap A gap becomes filled when prices move back into the black area of trading. Candlestick terminology describes this as “closing the window”. Gap A price void where the trading range between one time period does not overlap with a price trading of the next time period.

Golden cross

A bullish signal created by the short-term moving averages crossing above the long-term moving averages. High-wave A group of candlesticks with long upper and/or lower shadows. This grouping of formations foretells a market turn. Implied volatility A measure for the market to forecast future volatility. Inside session This is a trading session where the high and the low of a trading period remains within the high and the low of the previous trading session. Intra-day Trading periods that begin and end within a one-day time frame. Islands A formation created at the end of a trend where prices gap away from the current trend, trade for two or more days at those levels, and then gap back in the opposite direction. This leaves an island of trading at the end of the trend. Commonly known as island reversals. Strong reversal indicator. Locals Floor traders that make their living by trading a particular entity. Lower shadows The trading range below the body of a candle. Momentum Related to the velocity of a price move. The most recent close is compared to a specific number of closes in a specific time frame. Morning attack A Japanese definition for a large buy or sell order on the opening that is designed to significantly move the market. Moving Average Convergence-Divergence oscillator (MACD) A combination of three exponentially smoothed moving averages. Neckline The level that indicates the lows of the head in the head and shoulders formation or the high points in an inverse head and shoulders formation. Night attack

A large order placed at the close to move the market. Offset The term for closing trades. Longs are said to liquidate. Shorts are said to cover. On-Balance Volume (OBV) A cumulative volume figure. If prices close higher than the prior trading session, the volume for the higher day is added to the OBV. Conversely, volume is subtracted from the OBV on days when prices close lower than the previous day. Open interest Pertains to future contracts. It is the number of contracts that are still outstanding. It will be equal to the total number of long and short positions, not the combination of the two. Oscillator An indicator based upon a momentum formula that moves above or below a zero line or on a chart grid between 0 and 100 percent. They depict overbought and oversold conditions and positive or negative divergences; r measures the velocity in a price movement. Overbought A term associated with specific oscillators to denote when a price has moved too far, too fast in an upward direction. Oversold The same as the overbought definition except for it being in the downward direction. Paper trading A popular method using real-life trade circumstances and trading with imaginary trading funds. Petrifying pattern Another name for the Harami cross. Protective stop An order placed to limit losses on an existing position. If prices move to that level, a trade is initiated to liquidate the position avoiding further loss potential.

Raindrop Another name for the star formation. Rally Usually a strong upward price movement. Reaction A price movement that moves opposite the current trend. Real body (or body) The boxed area from the open to the close is what forms the body of the candle. When the close is lower than the open, a black body is produced. A close above the open causes a white body to be formed. Relative Strength Index (RSI) An oscillator developed by Welles Wilder. It compares the ratio of positive closes to negative closes over a specific time period. Resistance level A trading level where obvious selling keeps the prices from advancing any further. Retracement The price movement in the opposite direction of the recent trend. Reversal session After a move experiences a new high (or low), the next close is below (or above) the previous day’s close. Rickshaw Man A long-legged Doji where the body, although small, is in the center of the formation. Selling climax After a move downwards, prices push sharply lower on heavy volume. If prices move higher from these levels, a selling climax has occurred. Selloff The downward movement of prices.

Shadows

The extreme price movement outside the body of a candle creates the shadows. The lower shadow extends from the bottom of the body to the low price of the day. The upper shadow extends from the top of the body to the high price of the day. Shaven bottom A candlestick with no lower shadow. Shaven head A candlestick with no upper shadow. Simple moving averages The smoothing of price data where prices are added together, and then averaged. The term moving is included due to the fact that as each new day’s information is added to the numbers, the oldest data is dropped. Spring When prices break below a congestion area, and then spring right back above the broken support area, it has produced a bullish signals. Star A small body that gaps away from the previous long body. A star indicates the reduction of force illustrated by the previous long candle. A star following a long black body is called a raindrop. Stochastics An oscillator that measures the relative position of closing prices compared to the trading range over a specified period of time. %K indicates the fast stochastic, %D indicates the slow stochastic. Support level An obvious level where buyers are shown to step in and hold prices above that level. Tick volume The number of trades occurring during a specific time interval. Time filter A price level that prices have to stay above or below for a specific period of time to confirm that a technical level has been broken. Trend A price’s prevalent directional movement.

Trend-line A line that can be drawn along a series of highs or lows. This requires at least two points for a line to be drawn. The more points that are associated with the line, the more strength the trend-line carries. More details - click here Trend reversals (or reversal indicators) Price action that indicates the high probability of a trend reversing its direction. Tweezer tops or bottoms Highs or lows of a trend that are duplicated in back to back trading days or within the next few sessions. The name is derived from the price movement to those levels forming a tweezer-like visual. It is a minor reversal signal, however, its significance becomes greater if the highs or lows are touched with long shadows or if the identical bottoms are part of another reversal signal. Upgap A gap in prices to the upside. Upthrust The price movement that carries prices through and above observed resistance areas. If these new price levels do not hold and prices pull back under the breached resistance level, it is called an upthrust. It now becomes a bearish signal. Uptrend Prices that are trading higher. V bottom or top A sharp reversal forming a V pattern at the bottom of a trend or an inverted V at the top of a trend. Volume The total number of shares or contracts trading in a given day on that trading entity. Weighted moving average A moving average where the most recent data is given greater value than the oldest data. Window

The same as a Western gap. Windows can indicate the beginning of a strong trend as well as the end of a trend, exhaustion window. As Western technicians say that prices will always fill the gap, the Japanese expect to close the window. Yin and Yang The Chinese name for the black (Yin) and the white (Yang). Good and bad, positive and negative.

Glossary of Reading Terms

affix: A word element that is placed at the beginning (prefix), in the middle (infix), or at the end (suffix) of the root or word stem. alliteration: The repetition of the same or similar sounds (usually consonants) that are close to one another (e.g. the timid, tiny tadpole). alphabetic principle: The idea that letters represent sound and that printed letters can be turned into speech (and vice versa). anecdotal records: An informal, written record (usually positive in tone), based on the observations of the teacher, of a student's progress and/or activities which occur throughout the day. antonym: A word which is the opposite of another word. Large is the antonym of small. balanced literacy: Generally, an approach to reading that incorporates both whole language and phonics instruction. blending: Combining parts of words to form a word. For example, combining pl and ate to form plate. book talk: When a teacher (or media specialist) gives a brief talk about a particular book to generate interest in the book. choral reading: Sometimes referred to as unison reading. The whole class reads the same text aloud. Usually the teacher sets the pace. Choral reading helps with the ability to read sight words and builds fluency. chunking: Reading by grouping portions of text into short, meaningful phrases. cloze: A procedure whereby a word or words has/have been removed from a sentence and the student must fill in the blank using context clues (clues in the sentence). consonant: a letter and a sound. Consonants are the letters of the alphabet except for the vowels a,

e, i, o, u and sometimes y and w. consonant blend: two or three consonants grouped together; each sound is retained (heard). For example: st and scr. consonant digraph: two or more consonants grouped together in which the consonants produce one sound. For example: sh and ch. consonant cluster: A group of consonants that appear together in a syllable without a vowel between them. context clues: Bits of information from the text that, when combined with the reader's own knowledge, allow the reader to "read between the lines," figure out the meaning of the text, or determine the meaning of unknown words in the text. D.E.A.R: Drop Everything and Read. A time set aside during the school day in which everyone (teachers and students) drop everything and read. decode: to analyze graphic symbols to determine their intended meaning. duet reading: When a skilled reader and a weaker, less-skilled reader reads the same text aloud. The skilled reader may be a peer, older sibling, parent, or teacher. Duet reading builds confidence and fluency. easy reader: A short book with appropriately short text. The illustrations amplify the text. echo reading: When a skilled reader reads a portion of text (sometimes just a sentence) while the less-skilled reader "tracks." The less-skilled reader then imitates or "echoes" the skilled reader. emergent reader: An emergent reader: has print awareness, reads in a left-to-right and top-tobottom progression, uses some beginning and ending letter sounds, may tell the story from memory, may invent text, interprets/uses picture clues to help tell the story, is beginning to use high-frequency words. environmental print: Print that is all around us: street signs, labels on cans or jars, handwritten notes, etc. expository writing: Text that explains an event, concept, or idea using facts and examples. fluency: The ability to read at an appropriate rate smoothly. (Also the ability to read expressively if reading aloud.) fluent reader: A fluent reader: reads quickly, smoothly, and with expression; has a large store of sight words; automatically decodes unknown words, self-corrects.

genre: A type or category of literature marked by conventions of style, format, and/or content. Genres include: mystery, fantasy, epic poetry, etc. grapheme: The smallest unit of a writing system. A grapheme may be one letter such as t or combination of letters such as sh. A grapheme represents one phoneme. guided reading: A context wherein the teacher interacts with small groups of students as they read books that present a challenge. The teacher introduces reading strategies, tailoring the instruction to the needs of the students. When the students read, the teacher provides praise and encouragement as well as support when needed. Proponents of guided reading, Irene C. Fountas and Gay Su Pinell, have stated, "The ultimate goal of guided reading is to help children learn how to use independent reading strategies successfully." homograph: Two words that have the same spelling but different meanings and/or origins and may differ in pronunciation. Example: "the bow of a ship" and "a hair bow" homonym: A word that has the same spelling or pronunciation as another but different meanings and/or origins. See homograph and homophone. homophone: Two words that have the same pronunciation but differ in meaning or spelling or both. Example: pause and paws idiom: a phrase or expression that is (usually) not taken literally. For example, "Don't let the cat out of the bag" means to not tell something one knows, to keep silent. independent reading: Students self select books to read. A student's "independent reading level" is the level at which the student can read with 96-100% accuracy. language experience approach: Also referred to as LEA. An approach to literacy instruction in which students orally dictate texts to a teacher (or scribe). The text is then read aloud by the teacher as the students read along silently. Students are then encouraged to read and re-read the text, thus building fluency. The experiences that serve as stimuli/sources for the dictated text can vary from literature discussions to field trips. Generally, the approach involves: a shared experience, discussion, oral dictation, reading, and re-reading. After the shared experience, the scribe helps the student write about the experience. The approach works not only with beginning readers, but nonnative speakers of English, and adult learners as well. LEA is not a new approach; It has been studied and used for decades. learning log: A document wherein students write entries (usually short and ungraded) which reflect upon a lesson, activity, event, discussion, presentation, or experiment. leveled text: Books are "leveled" (i.e. placed in a certain category) based on the criteria of the person or entity leveling the books. Irene C. Fountas and Gay Su Pinnell, the developers of Guided Reading, advocate these stages: Emergent Readers (Levels A-E); Early Readers (Levels F-J); Early Fluent Readers (Levels K-P); and Fluent Readers (Levels Q-W). Individual titles of books are then

given a "level" based upon certain criteria. The Lexile Framework is another such tool. Lexile measures reader ability and text difficulty by the same standard. The leveling of texts allows teachers to match books with an individual student's reading ability. literacy: The ability to read, write, communicate, and comprehend. literacy centers: Stations or areas where literacy activities are set up for use. Centers may also be portable wherein the student takes the "center" to his or her desk. Examples of literacy centers: Reading the Room (a small area where students may obtain a flyswatter, pointer, large glasses, etc. that they can use to "read" the room as them walk around). Writing Centers which have available various types of paper, writing utensils, stamps, etc. For younger children the Writing Center may contain materials which they can use to form letters or words such play dough, fingerpaint, a flat piece of velvet, etc. literature circles: Student-led book discussion groups. Students choose their own reading material and meet in small, temporary groups with other students who are reading the same book. The teacher acts a facilitator. Literature Circles by Harvey Daniels (Stenhouse Publishers) is considered by many to be the definitive guide on the subject. main idea: The point the author is making about a topic. Topic and main idea are not the same. metaphor: A figure of speech in which two things are compared by saying one thing is another. modeled reading: Wherein the teacher reads aloud a book which is above the students' reading level. Students may or may not have a copy of the text with which to follow along. The purpose of modeled reading is to demonstrate a skill or ability such as: fluency, fix-up strategy, think aloud. morpheme: the smallest unit of meaning in oral and written language. narrative writing: Generally, writing about an event in a personal way. onset: The initial consonant sound (or sounds) that come before the vowel in a syllable. For example, the onset of cat is c. (The remainder of the word—at—is called a rime.) orthography: the written letters or symbols of a language. paired reading: see duet reading above pattern books: Also referred to as predictable books. Books which use repetitive language and/or scenes, sequences, episodes. Predictable books allow early readers to predict what the sentences are going to say, thereby increasing enjoyment and helping to build vocabulary. phoneme: The smallest unit of speech that affects the meaning of a word. A sound unit. The c in cat and the m in mat are phonemes.

phonemic awareness: The awareness of sounds in spoken words. A subset of phonological awareness. Phonemic awareness and phonics are not the same. Phonemic awareness is the ability to orally hear, identify, and manipulate individual sounds or segments of sound in words. Research has identified phonemic awareness as an essential and necessary ability if the child is become a good reader. phonics: A method of teaching reading that focuses on letter-sound relationships. phonogram: Also referred to as rime or word family. All the sounds (after the onset) from the vowel to the end of the word. phonological awareness: A range of understandings related to the sounds of words and word parts, including identifying and manipulating larger parts of spoken language such as words, syllables, and onsets and rimes. It includes: phonemic awareness, the ability to appreciate rhyme, and counting syllables among others. predictable books: Also referred to as pattern books. Books which use repetitive language and/or scenes, sequences, episodes. Predictable books allow early readers to predict what the sentences are going to say, thereby increasing enjoyment and helping to build vocabulary. prefix: An affix that is added to the front of a word and changes its meaning. For example: un being placed in front of the word developed. print conventions: The rules of print. For example: In the West one reads from left to right and moves from the top to the bottom of the page. Research shows that three of the most important and fundamental concepts students need to learn to become readers are: knowledge of the alphabet, phonemic awareness, and conventions of print. prior knowledge: Knowledge which the reader has prior to engaging in the lesson or reading. Sometimes referred to as schema. It is important to activate prior knowledge before the lesson or reading. This allows students to connect what they are learning/reading with what they already know. Additionally, a discussion of prior knowledge alerts the teacher to gaps in the students' knowledge and/or misconceptions the students have. r controlled vowel: When a vowel is followed by the letter r and this causes the vowel sound to be altered. For example: her. reading wars: A "war" waged primarily in the 1980s and 1990s over the best way to teach reading. On one side: the proponents of phonics, on the other the proponents of whole language. Today, the general consensus among researchers and reading specialists is a balanced approach. A list of online resources concerning the debate may be found here. reader's workshop: In a reader's workshop the teacher begins by presenting a mini-lesson on a reading skill or concept. Students are then given uninterrupted time to read their various texts. Afterward students respond to what they have read in a reader response journal or reading log.

Many reading workshops also include time for sharing. Many teachers first became familiar with reading workshops through Nancy Atwell's classic book In the Middle published in the late 1980s . The latest edition of the book is titled In the Middle : New Understanding About Writing, Reading, and Learning (Boynton-Cook/Heinemann). Another extremely popular book which discusses the reader's workshop is Mosaic of Thought: Teaching Comprehension in a Reader's Workshop by Ellin Oliver Keene and Susan Zimmerman (Heinemann). reading in the content areas: Concerns the the ability to read, write, speak about (as well as listen to) subject matter across the curriculum. The pioneers on this topic are Richard Vacca and Jo Anne Vacca who wrote Content Area Reading: Literacy and Learning Across the Curriculum (Pearson/Allyn & Bacon). reading response logs: A notebook or binder wherein students can respond to their reading. Reading response logs may take many forms. Teachers may wish to assign a prompt (or selection of prompts) which the students will then write about. Or, they can be used to document: reflections of the student, feelings about the reading, details of the text which interested the students, etc. rime: Also referred to word family. All the sounds (after the onset) from the vowel to the end of the word. For example the rime in the word cat is at. (The onset is c.) running records: In reading, a teacher records the child's reading behavior as he or she reads a book. The teacher may note errors, self-corrections, substitutions, and so forth. Also known as reading assessments. Teachers generally use a standard set of symbols for recording what the reader does while reading. schwa: the sound "uh." For example, the vowel sound heard at the beginning of the word alone. The schwa is represented by the symbol /a/ and any of the vowel letters (lettuce). semantics: the branch of linguistics which studies meaning in language. shared reading: An activity in which the teacher reads a story while the students look at the text being read and follow along. During this time the teacher may introduce print conventions, teach vocabulary, introduce a reading skill, encourage predictions, and more. The shared reading model was developed by Don Holdaway in 1979. sight word: Words that good readers instantly recognize without having to decode them. Sight words are usually "high-frequency" words. Fry's 300 Instant Words may be found here. (PDF file). silent, sustained reading: A period of time wherein students read silently from a book or other text of their choice. suffix: A group of letters added to the end of a word to form a new word. For example: when ful is added to the word help, a new word is formed: helpful. syllable: a unit of sound or group of letters made up of a vowel sound or a vowel consonant

combination. Syllables contain only one vowel. synonym: A word that has the same meaning as another word. For example: big and large are synonyms. syntax: the word order pattern in sentences, phrases, etc. synthesize: The process of combining two separate elements into one new element. topic: What the text is about. The topic is not the same as the main idea. vowel: a letter and a sound. The vowels in the alphabet are represented by the letters a, e, i, o, u and sometimes y and w. vowel digraph: a group of two vowels in which only one sound is heard. For example: height. vowel diphthong: the blending of two vowel sounds. For example: boil. Also referred to as a vowel blend. Whole Language Approach: A holistic philosophy of reading instruction which gained momentum during the 1970s, '80s, and early '90s. Emphasizes the use of authentic text, reading for meaning, the integration of all language skills (reading, writing, speaking, and listening), and context. word analysis: The identification and/or decoding or a word the reader does not immediately recognize. word families: Also known as phonograms, word families are groups of words that have a common pattern. For example, the an word family contains the words fan, pan, ran, plan, man, and so on. Go here for a list of the 37 most common phonograms. These 37 make up 500 words! word segmentation: The ability to break words into individual syllables. word wall: An area of the classroom (such as a bulletin board) on which a collection of words are displayed. (Personal word walls can be made using file folders.)

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