High Probability

Candlestick Patterns
& Set ups

www.candlestickforum.com www.stephenbigalow.com
Utilize easy mechanical trades that
remove the guess-work from trading.

Opportunities to profit in Breakout Gaps

and how to handle Bad News Gaps.

See the difference between healthy

profit-taking and a full-scale reversal
ahead.

www.candlestickforum.com www.stephenbigalow.com
Fry Pan bottom patterns
Dumpling Top
Cradle pattern
Jay-hook pattern
Scoop pattern
Belthold patterns
Gaps
Fry Pan Bottom
• The downtrend starts
waning with the
appearance of small trading
bodies.

• As the trend starts slowly

curling up, a gap up in price
indicates that strong buying
sentiment has now
returned.
Fry Pan Bottom Measuring Point

A dimple usually marks

the Halfway point
 Classic

What is expected coming out of

a Fry Pan Bottom?
 Fry Pan Bottom

A slow build up of
Investor sentiment
 PRXI

Fry Pan Bottom

 MBI Fry Pan Bottom

The Breakout is the signal

 PRXI

Fry Pan Bottom

Fry Pan Bottom Breakouts
OCZ – J-Hook

J-Hook
Looking For the Big Moves

J-Hook Set Up
 AFFY- Long Legged Doji

Long Legged Doji shows major Indecision

 AXP Kicker

A Kicker signal that sets up

a J-hook
SSH Kicker

Expected results
Common Price Movements

•www.candlestickforum.com
 Easy to spot support &
resistance price targets
 T-Line
EA Breakout
Breakout Steady Eddy
Best Friend
Blue Ice Failure
Left/Right Combo
Slow Curve
 EA Breakout
CS make pattern break out
Identification easy
Blue Ice Failure
 HERO 3 wave
Where are the big money
investors watching for
a support?
 Support
Candlestick Signals provide a visual advantage
 CBI BO steady eddie

T-line provides a comfort

 BF down and up

Candlestick Signals and gaps

= your best friend
Support

Morning Star signal

 Bidu Short
? !
Obvious Resistance
Doji on 50, sandwich

Rule of the Doji

Series of Doji’s

This is telling you something

What are the signals and
patterns looking for?
What Are We Looking For?

Big Gains %80

Left/Right
Combo
Stay Short
 Slow Curve

Exit strategy
INVN RB

Doji Rule
 EA FP

What is this telling us?

Fry Pan Bottom Breakouts

Simple entry strategy,

Set buy stop
 DANG

A Breakout is obvious
 Expected Results

BONT 100% plus gain

Fry Pan Bottom – minutes, days,
months

The indecisive rounding bottom is the predominant factor

TSPT FP
Rounding Bottom
or
Slow Curve
•www.candlestickforum.com
Slow Curve

T-line Crunch
 Slow Curve

A build up of investor
Bullish sentiment
 SPWR
Sold 1/2

Jan 8, 2013
Bought this week

?
 Slow Curve

Strong Option Trade set ups

 FSL RB
High probability results
 BIOL Slow Curve

Obvious Break Out Level

Slow Curves
DEPO RB now what?
What is possibly setting up?
Slow Curve
Slow Curve

Buy Entry
Rounded Bottom BO
IMUC Rounding Bottom

The pattern sets up with

signals
JKHY Rounding bottom

When to Buy
Excellent for option trades
Closed option position
at $8.70

Bought Jan 75 calls @ $2.40

FOE Rounding Bottom

Buy Here
T-line Crunch
Classic
 KKR Classic
What is expected after a
Fry Pan Break out?
LOW Classic Set Up
Dumpling Top
AMED – Short with the Market

Dumpling Top
 FRAN – Short to a Target

FRAN- Breaking thru support

Where is likely target?
Cradle Pattern
• The Cradle Pattern is a symmetric
bottom pattern that is easy to
identify.
– A downtrend becomes obvious
with a large black candle at the
bottom.
– A series of small or indecisive
trading days trade in a flat area.
– A bullish candle, more powerful
with a Bullish Engulfing signal, is
formed of approximately the same
magnitude as a Bearish candle at
the end of the downtrend.

• This signifies that the Bulls have

come out of the indecisive trading
area with decisive force.
 Cradle Pattern

Cradle Pattern
 NSM Cradle

Cradle and a close above the T-line

Cradle Pattern
Cradle Pattern
 How to identify pullbacks
versus reversals
 Jay Hook Pattern

Helps to differentiate between profit

taking and a full-scale reversal

•www.candlestickforum.com www.stephenbigalow.com
Jay Hook Pattern
• The first move of the
uptrend is very strong.

• A candlestick sell signal

indicates a pullback about
to occur.

• After a few days, small

indecisive candles start to
appear
– Doji, small Hammers,
Bullish Engulfing signals
Jay Hook Pattern
• The first test becomes the
recent high

• Indecision as found in
candlestick sell signals at
the recent high becomes
a quick indicator to get
out of the position

• A Bullish candle
breaching the recent high
illustrates that investor
sentiment is taking prices
up
 J Hook

What do the candle formations say on

The pull back?
 J Hook

Buy Points
 FOSL Spread Strategy
J Hook great for option
Spread trades
 Best F – J Hook
Why is a J Hook
anticipated?
J Hook
J Hook
Gap up to resistance

J Hook Break out

Scoop Pattern
• An extended flat
trading area
– Followed by a pullback

• Buy signals bring

price back up to flat
trading range

• Once price breaks

above flat range, look
for strong uptrend
Scoop has expected results
Scoop Pattern- Completed
Scoop pattern - Do not scan for a
Scoop
Scoop Pattern use it to Analyze
Scoop Pattern - What should happen upon
confirming?
Scoop Pattern - A strong trend to potential
targets
Scoop
TSPT Scoop
 DWA Inverted Scoop
Dreamworks Animation SKG Inc (16.2900, 16.3900, 16.1600, 16.2301, -0.07990)
23.5 23.5

23.0 23.0

22.5 22.5

22.0 22.0

21.5 21.5

21.0 21.0

20.5 20.5

20.0 20.0

19.5 19.5

19.0 19.0

18.5 18.5

18.0 18.0

17.5 17.5

17.0 17.0

16.5 16.5

16.0 16.0

15.5 15.5

2500
2000 50
1500
1000
500
x1000
15 22 31 5 12 19 26 3 10 17 24 31 7 14 22 28 4 11
November December 2013 February
Belt Hold Pattern
• Strong prevailing trend
• The candlestick body
should be the opposite
color of the prevailing
trend
• Gap on the open,
continuing the trend
• The open is the high or
low of that trend
• The length of the body
should be a long body.
 Belt Hold
Kite Realty Group Trust (6.34000, 6.34000, 6.10000, 6.26000, +0.06000)
6.45 6.45
6.40 6.40
6.35 6.35
6.30 6.30
6.25 6.25
6.20 6.20

The Deeper the open…

6.15 6.15
6.10 6.10
6.05 6.05
6.00 6.00
5.95 5.95
5.90 5.90
5.85 5.85
5.80 5.80
5.75 5.75
5.70 5.70
5.65 5.65
5.60 5.60
5.55 5.55
5.50 5.50
5.45 5.45
5.40 5.40
5.35 5.35
5.30 5.30
5.25 5.25
5.20 5.20
5.15 5.15
5.10 5.10
5.05 5.05
5.00 5.00
4.95 4.95
4.90 4.90
4.85 4.85
4.80 4.80
4.75 4.75
4.70 4.70
4.65 4.65
4.60 4.60
4.55 4.55
4.50 4.50
4.45 4.45
4.40 4.40
4.35 4.35

5000
4000
3000 50
2000
1000
x1000
15 22 31 5 12 19 26 3 10 17 24 31 7 14 22 28 4 11
November December 2013 February
 KCAP Belt Hold Kohlberg Capital Corp (10.1600, 10.2500, 10.0400, 10.1960, +0.07600)
10.6 10.6
10.5 10.5
10.4 10.4
10.3 10.3
10.2 10.2
10.1 10.1
10.0 10.0
9.9 9.9
9.8 9.8
9.7 9.7
9.6 9.6
9.5 9.5
9.4 9.4
9.3 9.3
9.2 9.2
9.1 9.1
9.0 9.0
8.9 8.9
8.8 8.8
8.7 8.7
8.6 8.6
8.5 8.5
8.4 8.4
8.3 8.3
8.2 8.2
8.1 8.1
8.0 8.0
7.9 7.9
7.8 7.8
7.7 7.7
7.6 7.6
7.5 7.5
7.4 7.4
7.3 7.3

5000
50

x1000
15 22 31 5 12 19 26 3 10 17 24 31 7 14 22 28 4 11
November December 2013 February
 Belt Hold
Herbalife Ltd (36.0100, 36.4100, 35.4600, 35.7900, -0.13000)
57 57
56 56
55 55
54 54
53 53
52 52
51 51
50 50
49 49
48 48
47 47
46 46
45 45
44 44
43 43
42 42
41 41
40 40
39 39
38 38
37 37
36 36
35 35
34 34
33 33
32 32
31 31
30 30
29 29
28 28
27 27
26 26
25 25
24 24
23 23
22 22

4000
3000
50
2000
1000
x10000
2 19 26 3 10 17 24 31 7 14 22 28 4 11
December 2013 February
22.5
ESI Belt Hold
ITT Educational Services Inc (17.8000, 17.8000, 16.9600, 17.1900, -0.62000) 22.5

22.0 22.0

21.5 21.5

21.0 21.0

20.5 20.5

20.0 20.0

19.5 19.5

19.0 19.0

18.5 18.5

18.0 18.0

17.5 17.5

17.0 17.0

16.5 16.5

16.0 16.0

15.5 15.5

15.0 15.0

14.5 14.5

14.0 14.0

13.5 13.5

13.0 13.0

12.5 12.5

12.0 12.0

11.5 11.5

11.0 11.0

10.5 10.5

5000
4000
3000 50
2000
1000
x1000
15 22 31 5 12 19 26 3 10 17 24 31 7 14 22 28 4 11
November December 2013 February
 BECN
Beacon Roofing Supply Inc (34.7500, 37.8000, 34.1900, 36.8487, -0.02130)
38.0 38.0

37.5 37.5

37.0 37.0

36.5 36.5

36.0 36.0

35.5 35.5

35.0 35.0

34.5 34.5

34.0 34.0

33.5 33.5

33.0 33.0

32.5 32.5

32.0 32.0

31.5 31.5

31.0 31.0

30.5 30.5

30.0 30.0

29.5 29.5

29.0 29.0

28.5 28.5

28.0 28.0
1500
1000
50
500
x1000
15 22 31 5 12 19 26 3 10 17 24 31 7 14 22 28 4 11
November December 2013 February
Belt Hold
When to take profits
What Pattern set up?
EOX J Hook?

What should we be looking for?

Belt Hold
Belt Hold - Adds strength to existing trends
Belt Hold – shows the sellers are flushed out
Belt Hold – gets rid of the last of the sellers
 Belt Hold

The bigger the

Signal!
Easy Trend Analysis

•www.candlestickforum.com
1415
1410
Dow
Dow Jones Industrial Average (13,944.05, 14,022.62, 13,944.05, 13,991.54, +47.4902) 1415
1410
1405 1405
1400 1400
1395 1395
1390 1390
1385 1385
1380 1380
1375 1375
1370 1370
1365 1365
1360 1360
1355 1355
1350 1350
1345 1345
1340 1340
1335 1335
1330 1330

?
1325 1325
1320 1320
1315 1315
1310 1310
1305 1305
1300 1300
1295 1295
1290 1290
1285 1285
1280 1280
1275 1275
1270 1270
1265 1265
1260 1260
1255 1255
1250 1250
1245 1245
1240 1240
1235
x10
1235
x10
4000
3000
50
2000
1000
x1000
15 22 31 5 12 19 26 3 10 17 24 31 7 14 22 28 4 11
November December 2013 February
Looking for the Big Moves

J Hook Set Up
 Hitting the Big Ones Keryx Biopharmaceuticals Inc (6.75000, 6.90000, 6.57000, 6.65000, -0.04000)
10.5 10.5

10.0 10.0

9.5 9.5

9.0

8.5
KERX - two weeks ago 9.0

8.5

8.0 8.0

7.5 7.5

7.0 7.0

6.5 6.5

6.0 6.0

5.5 5.5

5.0 5.0

4.5 4.5

4.0 4.0

3.5 3.5

3.0 3.0

2.5 2.5

2.0 2.0

1.5 1.5

5000
50

x10000
15 22 31 5 12 19 26 3 10 17 24 31 7 14 22 28 4 11
November December 2013 February
 Trading Gaps

Gaps represent enthusiasm to get into a

position to the point that investors will pay
prices away from any of the previous day's
trading range.

Great for identifying panic selling at the

bottom and exuberant buying at the top.
 TRADING GAPS
What is the definition of a GAP?

• Gap or ‘window’ occurs when there is a ‘gap’ in price

within a specific time frame.
• In a rising chart, it illustrates prices opening higher than
previous trading range. The buyers have stepped in with
great enthusiasm.
• In a declining chart, it illustrates prices opening lower than
previous trading range. The sellers are getting out at any
cost.
 Four Basic
Gaps
Gap Up at Top
Gap Down at Top
Gap Up at Bottom
Gap Down at Bottom
 Two show
EXHAUSTION
Gap Up at Top
Gap Down at Bottom
A Gap at bottom get in, a Gap at top get out
Gap Up at Top
 FSYS, -exuberance

Gap up at Top,
Start looking for selling
AFFY – Doji after gap up at top
A gap up in overbought conditions
make it time to watch for a sell signal.

EXHAUSTION
AGEN Gap up Doji at top
A Gap up in the overbought area,
start watching for a candlestick
sell signal

Spinning Top = WHERE?

  12 Major Candlestick Signals video tutorials on each signal
 over 8 hours of training with chart examples
 The exact same package Amazon sells for over $500
 Webinar special promotion; available for $12 processing fee
 Plus, option to take 30-day FREE TRIAL Membership

12 Major Signals Pack

for $12 Processing Fee –
Get More Details Here

For Assistance - Email Admin@candlestickforum.com

Subject: Traders Library Special 12 for $12