For
the most
part,
daily
candlestick
reversal
patterns
are quite
subjective
with the
exception
of the
"long-legged
shadows'
Doji"
and the
"hangman
and hammer"
which
are more
commonly
used and
provide
more significance
to the
trader.
In-Sen
(single
black candle)
Reliability
Rating:
Very Low
The
easiest
type of
signal is
the single
black candlestick
(in-sen).
The longer
the body
(jittai)
the more
bullish
is the candle.
The
Hangman
Reliability
Rating:
low/moderate
The
hangman
(karakasa,
or paper
umbrella),
consists
of a small
body (either
color) with
a very long
lower shadow.
This pattern
is typically
found at
the top
or bottoms
of trends.
When the
pattern
occurs at
the top
of a up
trend it
is called
a hangman
(when it
is found
at the bottom
of a down
trend it
is called
a hammer).
The
hangman
can
be either
a black
or a
white
candle.
Long-legged
shadows'
doji candlestick
Reliability
Rating:
moderate
This
candle has
no body,
the open
and the
close is
identical.
This signal
shows that
the trend
has run
it's course
and it will
reverse.
The trend
will reverse
quickly
after this
signal occurs.
It is considered
a reliable
signal.
Historical and current end-of-day data provided by Interactive Data Corp. and subject to terms of use.
Dow Jones Industrial Average is copyright Dow Jones & Company, Inc.
