CANDLESTICK TERMS AND DEFINITIONS

Above Average Volume
Harami (Bearish)
Morning Doji Star (Bullish)
Advance Block (Bearish) Harami (Bullish) Moving Averages
Advance Block (Bullish) Harami Cross (Bearish) Piercing Pattern (Bullish)
Candlestick Lines Harami Cross (Bullish) Rising Three (Bullish)
Dark-cloud cover (Bearish) Inverted Hammer (Bullish) Shooting Star (Bearish)
Doji star (Bearish) Long Green Real Body Star (Bearish)
Doji star (Bullish) Long Red Real Body Star (Bullish)
Engulfing Pattern (Bearish) Major Price Resistance Tasuki Gap (Bearish)
Engulfing Pattern (Bullish) Major Price Support Tasuki Gap (Bullish)
Evening Star (Bearish) Mat-hold pattern (Bearish) Three Crows (Bullish)
Evening Doji Star (Bearish) Mat-hold pattern (Bullish) Three White Soldiers (Bearish)
Falling Three (Bearish) Minor Price Resistance Thrusting Line (Bearish)
Hammer (Bullish) Minor Price Support Thrusting Line (Bullish)
Hanging man (Bearish) Morning Star (Bullish)  

Above Average Volume–a total daily volume of shares traded which is greater than the average of the daily volumes over the previous few days.

 

Advance Block (Bearish)–a three candlestick pattern in which the last two candlesticks show weakening upside drive.

Advance Block (Bullish)–a three candlestick pattern in which the last two candlesticks show strengthening downside drive.

Candlestick Lines–a traditional Japanese chart which consists of a real body, representing the open and close, and upper and lower shadows, representing the high and low of the day.

Dark-cloud cover (Bearish)–a bearish reversal signal.  In an uptrend, a long green candlestick is followed by a long red candlestick that opens above the prior green candlestick’s high.  The second candlestick must close well into the first candlestick’s real body.

Doji star (Bearish)–a doji line which gaps from a long green candlestick.

Doji star (Bullish)–a doji line which gaps from a long red candlestick.

Engulfing Pattern (Bearish)–a bearish engulfing pattern occurs when selling pressure overwhelms buying pressure reflected by long red real body engulfing a small green real body in an uptrend.

Engulfing Pattern (Bullish)–a bullish engulfing pattern occurs when buying pressure overwhelms selling pressure reflected by long green real body engulfing a small red real body in a downtrend.

Evening Star (Bearish)–a top reversal pattern where the first is a tall real body, the second is a small real body (green or red) which gaps high to form a star.  The third is a red candlestick which closes well into the first session’s green real body.

Evening Doji Star (Bearish)–the same as an evening star except the middle candlestick is a doji instead of a small real body.

Falling Three (Bearish)–comprised of five candlesticks, a tall red real body candlestick preceded three small green real bodies which hold within the first session’s range.  Then a red candlestick closes at a new low.

Hammer (Bullish)–a bottoming candlestick line where a small real body (red or green) at the top of the trading range with a very long shadow with little or no upper shadow.

Hanging man (Bearish)–a small real body (green or red) with little or no upper shadow.  It is a bearish reversal pattern when appearing during an uptrend.

Harami (Bearish)–a two candlestick pattern in which a small real body holds within the prior session’s unusually large real  body.  The harami implies that the preceding trend is getting ready to conclude.

Harami (Bullish)–a two candlestick pattern in which a small real body holds within the prior session’s unusually large real body.  The harami implies that the preceding trend is getting ready to conclude

Harami Cross (Bearish)–a harami with a doji on the second session instead of a small real body

Harami Cross (Bullish)–a harami with a doji on the second session instead of a small real body

Inverted Hammer (Bullish)–a candlestick that has a long upper shadow and a small real body at the lower end of the session.  It is a bullish bottom reversal signal

Long Green Real Body (Bearish)–a relatively long real body with a closing price far above the opening price

Long Red Real Body (Bullish)–a relatively long real body with a closing price far Below the opening price.

Major Price Resistance–an area of price where a stock hits resistance, reverses direction and then retests the same general area of resistance a second time.

Major Price Support–an area of price where a stock hits support, reverses direction and then retests the same general area of support a second time.

Mat-hold pattern (Bearish)–a red candlestick is followed by a small green real body which gaps lower.  Then there are two small green candlesticks which are followed by a bearish red candlestick.

Mat-hold pattern (Bullish)–a green candlestick is followed by a small red real body which gaps higher.  Then there are two small red candlesticks which are followed by a strong green candlestick

Minor Price Resistance–an area of price which previously acted as support, but now serves as price resistance.

Minor Price Support–an area of price which previously acted as resistance,  but now serves as price support.

Morning Star (Bullish)–a candlestick pattern where the first is a long red real body, the second is a small real body (green or red) which gaps lower to form a star.  The third is a green candlestick that closes well into the first session’s red real body.

 

Morning Doji Star (Bullish)–the same as a morning star except the middle candlestick is a doji instead of a small real body.

 

Moving Averages (Simple)calculates the average value of price over a period of time. As the stock price changes each day, its average price moves up and down.  For example, the 10 Day Simple Moving Average would be the sum of the price over the past 10 days divided by 10.  The average is called ‘Moving’ because each new day is added to the total while the earliest date is removed from the calculation.

Piercing Pattern (Bullish)–a long red candlestick is followed by a gap lower during the next session.  This session finishes as a bullish green real body which closes more than halfway into the previous sessions real body.

 

Rising Three (Bullish)–comprised of five candlesticks, a tall green real body candlestick preceded three small red real bodies which hold within the first session’s range. Then a green candlestick closes at a new high.

 

Shooting Star (Bearish)–a candlestick with a long upper shadow with little, or no lower shadow, and a small real body near the lows of the session. 

 

Star (Bearish)–a small real body which gaps away from the previous long body.

 

Star (Bullish)–a small real body which gaps away from the previous long body.

 

Tasuki Gap (Bearish)–a red real body gaps lower followed by a green candlestick of about the same size, which opens in the red’s real body, and then closes above the red’s real body. 

 

Tasuki Gap (Bullish)–a green real body gaps higher followed by a red candlestick of about the same size, which opens in the green’s real body, and then closes below the green’s real body.

 

Three Crows (Bullish)–three relatively long consecutive red candlesticks which close near or on their lows.

 

Three White Soldiers (Bearish)–three relatively long consecutive green candlesticks which close near or on their highs.

 

 

 

Thrusting Line (Bearish)–a red candlestick which closes in the prior green’s real body, but still above the middle of the prior session’s real body.

 

Thrusting Line (Bullish)–a green candlestick which closes in the prior red’s real body, but still below the middle of the prior session’s real body.