An Introduction to Japanese Candlestick Charting Part 2

Common Candlestick Terminology

The following is a list of some individual candlestick terms. It is important to realize that many formations occur within the context of prior candlesticks. What follows is merely a definition of terms, not formations.

***********************************************************************************************************

The Black Candlestick -- when the close is lower than the open.
The White Candlestick -- when the close is higher than the open.

The Shaven Head -- a candlestick with no upper shadow.

The Shaven Bottom -- a candlestick with no lower shadow.

Spinning Tops -- candlesticks with small real bodies, and when appearing within a sideways choppy market, they represent equilibrium between the bulls and the bears. They can be either white or black.
Doji Lines -- have no real body, but instead have a horizontal line. This represents when the Open and Close are the same or very close. The length of the shadow can vary.

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"