Candlestick Patterns for Daytradingcandlestick Patterns for Daytrading

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Candlestick Patterns for Day Trading Introduction Japanese rice traders developed candlesticks centuries ago to visually display price activity over a defined trading period. Each candlestick represents the trading activity for one period. The lines of a candlestick represent the opening, high, low and closing values for the period. The main body (the wide part) of the candlestick represents the range between the opening and closing prices. If the closing price is higher than the opening price, the main body is white. If the closing price is lower than the opening price, the main body is black. The lines protruding from either end are called wicks or shadows. Bearish 3 Pattern A long black body followed by several small bodys and ending in another long black body. The small bodys are usually contained within the first black body's range. A bearish continuation pattern. Interpretation Bearish Harami Pattern A very large white body followed by a small black body that is contained within the previous bar. A bearish pattern when preceded by an uptrend. Interpretation Bearish Harami Cross Pattern A Doji contained within a large white body. A top reversal signal. Interpretation Page 1 of 8 Big Black Candle Pattern An unusually long black body with a wide range. Prices open near the high and close near the low. A bearish pattern. Interpretation Big White Candle Pattern A very long white body with a wide range between high and low. Prices open near the low and close near the high. A bullish pattern. Interpretation Black Body Pattern This candlestick is formed when the closing price is lower than the opening price. A bearish signal. More important when part of a pattern. Interpretation Bullish 3 Pattern A long white body followed by three small bodies, ending in another long white body. The three small bodies are contained

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