Major Candlestick Signals

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The Evening Star signal is found at the top of an uptrend. Like the evening star Venus, which foretells of gloomy things (night) to come, this signal too suggests that bad things (lower stock prices) could be on the way. Criteria:
1. The stock must have been in a definite uptrend before this signal occurs. This can be visually seen on the chart.
2. The first day of the signal must be a long white body. The second day must be a day of indecision. The third day should be a long dark candle reaching down at least halfway into the body of the first day’s white candle.

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The Kicker can be a bullish Kicker or a bearish Kicker. It need not necessarily have a preceeding trend to it. Some traders call it THE most powerful candlestick signal.
Criteria:
1. The stock need not be in a definite downtrend before this signal occurs.
2. The first day of the signal must be a long black body. The second day must be a long white candle opening above the

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The Hammer signal is found at the bottom of a downtrend. The Japanese rice traders say, 'The bulls hammered out the bottom'.Criteria:
1. The stock must have been in a definite downtrend before this signal occurs.
2. The lower shadow must be at least twice the size of the body.
3. The day after the Hammer is formed, one should witness continued buying.

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The Shooting Star signal is found at the top of an uptrend. Criteria:
1.The stock must have been in a definite uptrend before this signal occurs. This can be visually seen on the chart.
2.The Upper shadow must be at least twice the size of the body.
3.The day after the Shooting Star is formed, one should witness continued selling.

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