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Japanese Candlesticks

Candles Doji
Dragonfly Doji Gravestone Doji
Hammer Inverted Hammer
Spinning Top Tweezer
Engulfing Shooting Star
Morning Star Evening Star
 
Candles
Charting programs are different so you may see different colors for some of the candles.  It is common for upward moves to be represented by blue, white, or green candles while downward moves typically use red or black candles.

 
Doji
The opening and closing prices are near the same.  The doji represents indecision by traders with a fairly equal balance of bulls and bears fighting it out for control.  Be careful, because power may be shifting and confirmation candles will be needed to help determine the next move.
 
Dragonfly Doji
These will sometimes form near the bottom of a move and are characterized by a long tail with the opening and closing price nearly the same.  These candles typically favor a bullish sentiment and could mean a reversal is near. 
 
Gravestone Doji
These will sometimes form near the top of a move and are characterized by a long wick with the opening and closing price nearly the same.  These candles typically favor a bearish sentiment and could mean a reversal is near. 
 
Hammer
A hammer usually reflects a reversal.  The long tail should be at least twice as long as the main body.  The body can be any color but a confirmation candle is needed to confirm the reversal.
 
Inverted Hammer
Looks like a shooting star but is found near the bottom of a trend.  The inverted hammer has a long wick instead of a long tail like the hammer has.  The body can be any color but a confirmation candle is needed to confirm the reversal.
 
Spinning Top
The spinning top is a neutral candle and can be any color.  The smaller the body the more indecisive the direction of the market. 
 
Tweezer
Tweezers tend to favor a reversal. The longer the tails or wicks the stronger the indication of the reversal.  The candles can be adjacent to each other or separated by a candle or two.
 
Engulfing
If the bull engulfing candle is seen after a long downtrend or the bear engulfing candle is seen after a long uptrend the pattern could be a strong sign of a reversal.  The second candle should engulf the first.  If more then one candle is engulfed it could provide an even stronger reversal signal. 
 
Shooting Star
Looks like an inverted hammer but is found near the top of a move and often marks a reversal.  The body can be any color but a confirmation candle is needed to confirm the reversal.  
 
Morning Star
Usually begins with a large red body followed by a small blue bodied candle or doji then followed by a another blue candle that moves at least 50% into the body of the first red candle. 
 
Evening Star
Usually begins with a large blue body followed by a small red bodied candle or doji then followed by a another red candle that moves at least 50% into the body of the first blue candle. 

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