Page 146 - THE MARKET WHISPERER

144 PART 5 - Principles O f Technical Analysis

Morning A bullish pattern opposite to that of the Evening
Doji Star Star. Here the doji indicates pattern reversal after
the dark candle, which is followed by a clear
candle rising to at least halfway above the body of
the dark candle preceding the doji.

Morning A bullish pattern. At its base is a narrow range
Star candle indicating pattern reversal, followed by a
clear candle rising to at least halfway above the
dark candle preceding the narrow range candle.
The lowest candle could be clear or dark.

Long Lower A bullish pattern. At its base is a candle with a

Shadow long bottoming tail, followed by a clear candle
rising to at least halfway above the dark candle

preceding it.

Long Upper A bearish pattern. Its movement peaks with the

Shadow candle having a long topping tail, followed by the
dark candle dropping to at least halfway below

the clear candle preceding the peak candle.

Piercing A bullish pattern. After a dark wide range candle,
Line a white candle forms which penetrates beyond
the halfway point of the dark candle’s body.

Hammer A bullish pattern created when the price of a
stock drops significantly, but during the candle’s
timeframe the price comes back to rise strongly
and close with a significantly higher price than
the low price.

Hanging A bearish pattern formed when the stock price
Man drops at the start of the candle’s timeframe, but
returns to rise strongly at its close with a high
price. The strong sales at the outset indicate the
beginning of the end for buyer control.

Inverted A bullish pattern created when a dropping stock
Hammer
reverses its pattern briefly and rises, but at the
end of the candle’s time- frame returns to the
bottom and leaves a topping tail. The strong

buyer end at the outset indicates the beginning of

the end of seller control.

Spinning A bearish pattern. At the pattern’s peak is a
Top narrow range candle with two tails, followed
by a dark candle dropping to at least below the
halfway mark of the clear candle preceding the
peak candle.