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CANDLE DESCRIPTION

In order to create a candlestick chart, you must have a data set that contains open, high, low and close values foreach time period you want to display. The hollow or filled portion of the candlestick is called "the body" (also referredto as "the real body"). The long thin lines above and below the body represent the high/low range and are called"shadows" (also referred to as "wicks" and "tails"). The high is marked by the top of the upper shadow and the low bythe bottom of the lower shadow. If the stock closes higher than its opening price, a hollow candlestick is drawnwith the bottom of the body representing the opening price and the top of the body representing the closing price. Ifthe stock closes lower than its opening price, a filled candlestick is drawn with the top of the body representingthe opening price and the bottom of the body representing the closing price.

MarubozoA candlestick with no shadow extending from the body at either the open, the close or at both. The name meansclose-cropped or close-cut in Japanese, though other interpretations refer to it as Bald or Shaven Head.

Spinning TopCandlestick lines that have small bodies with upper and lower shadows that exceed the length of the body. Spinningtops signal indecision.

1) Long white candlesticks indicate that the Bulls controlled the ball (trading) for most of the game.2) Long black candlesticks indicate that the Bears controlled the ball (trading) for most of the game.3) Small candlesticks indicate that neither team could move the ball and prices finished about where they started.

4) A long lower shadow indicates that the Bears controlled the ball for part of the game, but lost control by the endand the Bulls made an impressive comeback.5) A long upper shadow indicates that the Bulls controlled the ball for part of the game, but lost control by the endand the Bears made an impressive comeback.6) A long upper and lower shadow indicates that the both the Bears and the Bulls had their moments during thegame, but neither could put the other away, resulting in a standoff.

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CANDLE BULLISH CANDLE BEARISHUpside Tasuki GapA continuation pattern with a long white body followed by another

white body that has gapped above the first one. The third day isblack and opens within the body of the second day, then closes inthe gap between the first two days, but does not close the gap.

Downside Tasuki GapA continuation pattern with a long black body followed by

another black body that has gapped below the first one. Thethird day is white and opens within the body of the secondday, then closes in the gap between the first two days, butdoes not close the gap.

Rising Three MethodsA bullish continuation pattern. A long white body is followed bythree small body days, each fully contained within the range of thehigh and low of the first day. The fifth day closes at a new high.

Falling Three MethodsA bearish continuation pattern. A long black body is followedby three small body days, each fully contained within therange of the high and low of the first day. The fifth day closesat a new low.

Stick SandwichA bullish reversal pattern with two black bodies surrounding awhite body. The closing prices of the two black bodies must beequal. A support prices is apparent and the opportunity for pricesto reverse is quite good.

Upside Gap Two CrowsA three day bearish pattern that only happens in an uptrend.The first day is a long white body, followed by a gappedopen with the small black body remaining gapped above thefirst day. The third day is also a black day whose body islarger than the second day and engulfs it. The close of thelast day is still above the first long white day.