Candlesticks Flashcards
What is a Black Marubozu?
A long black body with no shadows on either end.
What does a Black Marubozu mean?
weak, bearish continuation or bullish reversal pattern
A long black Marubozu could mean?
a final sell off
What is a White Marubozu?
A long white body with no shadows at either end.
What does the White Marubozu mean?
Strong line, bullish continuation or bearish reversal
What does a closing Marubozu look like?
No lower shadow because the close is at the bottom of the body
Does it matter what color the CLOSING or OPENING body are?
No
What if the Closing Marubozu is white?
There would be no UPPER shadow because the close is at the top of the body
What if the Closing Marubozu is Black?
No lower shadow because the close is at the bottom.
What is the Black Marubozu considered?
A weak line, bearish
What is the White Marubozu considered?
A strong line, bullish
What does an OPENING Marubozu looks like?
No shadow extending from the opening price end.
What if the Opening body is WHITE?
There will be no lower shadow/Bullish
What if the Opening body is BLACK?
There would be no UPPER shadow/Bearish
Is the OPENING Marubozu stronger than the CLOSING Marubozu?
No
What is a Spinning Top?
A candlestick with an Upper and Lower shadow that is greater than the length of the body.
What dose the Spinning Top represent?
Indecision between the Bulls and the Bears.
What is a DOJI?
When the candle line is so small that the open and close prices are equal
When does a DOJI occur?
When the opening and closing are the “same” for that day.
What does it mean if the DOJI occurs alone?
There is an indecision and must not be ignored.
A DOJI preceeded by a long white day means what?
It is an uptrend that suddenly stops.
What do DOJI’S indicate?
A change of trend when they occur at the tops instead of the bottoms.
What is a Long legged DOJI?
Has a upper and lower shadow and in the middle of trading day means indecision of buyers and sellers.
When does a Gravestone DOJI appear?
Develops AT or very near the LOW of the day.
What does it mean if the UPPER shadow is very long?
This is called a Gravestone DOJI, and it means that the buyers and sellers could not agree on the prices
What is the difference between a Gravestone DOJI and a Shooting Star DOJI?
Only difference is the Shooting Star has a small body and the Gravestone DOJI has NO body.
What is a Dragonfly DOJI?
Occurs when the opening and close are at the high of the day.
When would the Dragonfly DOJI normally appear?
At the market turning points.
What is a Four Price DOJI?
When all four price components come together and are equal.
What are the Four Price components?
high,low open,close
When does the Four Price occur?
When the stock is very Illiquid or the data source did not have any prices other than the close.
When does the Star DOJI appear?
When a small body gaps above or below the previous day’s long body.
What does the Star DOJI indicate?
Uncertainty
What are the Star DOJI apart of?
Primarily reversal patterns
What are Paper Umbrellas
They represent strong reversal implications
What are the name of the two Umbrella lines called?
The Hammer and the Hanging Man depending on their location in the trend of the market
What represents a strong reversal implication
Paper umbrellas
What has upper and lower shadows and means indicision of the buyers and sellers?
A long legged DOJI
What is it called when a stock is illiquid?
A four star DOJI
What is it called when a candle line is so small and it means the open and close prices are equal?
A DOJI
What happens at the market price turning point?
A dragonfly DOJI will appear
