How to Make Money Trading with Candlestick Charts

White (green) candlestick
depicts that the day’s closing price was
higher than the opening price of the day
Figure 2.2
shows a candlestick where the
closing price of the day is 
lower
than the
opening price of the day.

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Figure 2.2:
Black (red) candlestick depicts
that the day’s closing price was lower than
the opening price of the day
It is not necessary for a candle to have both
the upper and lower shadows. The following
figures depict a few variations of the candle
formation. The reader does not need to
remember the names but should understand
the formation instead.

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White Morubozu
This is a white candle with no shadows at
either end (
see
Figure 2.3
).
Figure 2.3:
White Morubozu
It depicts a day when the low of the day is
the same as the open and the high of the day
is the same as the close price of the day. This
usually represents a very bullish formation
as it shows the bulls had the upper hand

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throughout the day.

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Black Morubozu
This is a black candle with no shadows at
either end (
see
Figure 2.4
).
Figure 2.4:
Black Morubozu
This occurs when the high of the day is the
same as the open price of the day and the
close of the day is the same as the low price

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of the day. What does this candle represent?
It shows domination by the bears throughout
the day. Generally, this would be considered
a very bearish candle.

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Opening Morubozu
Figure 2.5
shows two cases of an Opening
Morubozu.
Figure 2.5: