CANDLES

Candles are a tool, not a system. Candle signals are unexcelled for spotting the early reversals, not to predict the extent of the move. Candles do not provide price targets, measured moves, looking for prior support and resistance areas, retracements and trend lines provided by Western technical analysis. Candlestick Chart is a form of Japanese charting that has become popular in the West. A narrow line (shadow) shows the session's price extremes (range). The shadow above the real body is called the upper shadow, and the shadow below the real body is the lower shadow. Accordingly, the peak of the upper shadow is the high of the session and the bottom of the lower shadow is the low of the session. If a candle body has no upper shadow, it is said to have a shaven head. A candle body with no lower shadow has a shaven bottom. A wider body marks the area between the open and the close. If the close is above the open, the body is not filled; if the close is below the open, the body is filled. The Japanese say the real body is the essence of the price movement. This reflects a central concept about the power of the real bodies. By looking at the height and body (filled versus unfilled) , we get an immediate visual signal whether it's the Bulls or Bears in control. Doji is a distinct trend change signal. A candlestick with a body so small that the open and close prices are equal. A Doji occurs when the open and close for that day are the same, or very close to being the same (churn). Candle patterns ...   http://www.candlesticker.com/BullishPatterns.aspx?lang=en