17 Money Making Candlestick Formations

• Candlestick Line Candlestick lines and charts traditional Japanese charts whose individual lines look like candles, hence their name. The candlestick line is comprised of a real body and shadows. See "Real body" and "shadow."

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• Candlestick Formation 1 Belt-hold line -- there are bullish and bearish belt holds. A bullish belt hold is a tall white candlestick that opens on its low. It is also called a white opening shaven bottom. At a low price area, this is a bullish signal. A bearish belt hold is a long black candlestick which opens on its high. Also referred to as a black opening shaven head. At a high price level, it is considered bearish.

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• Candlestick Formation 2 Counterattack lines -- following a black (white) candlestick in a downtrend (uptrend), the market gaps sharply lower (higher) on the opening and then closes unchanged from the prior session's close. A pattern which reflects a stalemate between the bulls and bears.

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• Candlestick Formation 3 Dark-cloud cover -- a bearish reversal signal. In an uptrend a long white candlestick is followed by a black candlestick that opens above the prior white candlestick's high. It then closes well into the white candlestick's real body.