Money Making Candlestick Formations - Page 2

• Candlestick Formation 4 Doji --a session in which the open and close are the same (or almost the same). There are different varieties of doji lines (such as a gravestone or long-legged doji) depending on where the opening and closing are in relation to the entire range. Doji lines are among the most important individual candlestick lines. They are also components of important candlestick patterns.

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• Candlestick Formation 5 Engulfing patterns -- there is a bullish and bearish engulfing pattern. A bullish engulfing pattern is comprised of a large white real body which engulfs a small black real body in a downtrend. The bullish engulfing pattern is an important bottom reversal. A bearish engulfing pattern (a major top reversal pattern), occurs when selling pressure overwhelms buying pressure as reflected by a long black real body engulfing a small white real body in an uptrend.

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• Candlestick Formation 6 Doji star -- a doji line which gaps from a long white or black candlestick. An important reversal pattern with confirmation during the next session.

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