Japanese candlesticks - Atekubi
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Below the neckline - bullish atekubi
Definition: A bullish atekubi (line below the neckline) is a structure comprised of two Japanese candlesticks. The first is a large bullish candlestick (green) followed by a small bearish candlestick (red) with a closing just above the closing level of the previous candlestick. The second candlestick must be significantly smaller than the first.
Illustration:
Characteristic: A bullish atekubi often forms after a significant increase characterized by several large green Japanese candlesticks.
Significance: A line under the neckline (bullish atekubi) is a continuation pattern, it indicates a continuation of the bullish movement.
Note: For the structure to be validated, the next candlestick must be bullish and close above the opening level of the small bullish candlestick (red).
Invalidation: If the lowest point of the small bearish candlestick surmounts the next candlestick, the structure can be considered invalidated.
Below the neckline - bearish atekubi
Definition: A bearish atekubi (line below the neck) is a structure comprised of two Japanese candlesticks. The first is a large bearish candlestick (red) followed by a small bullish candlestick (green) with a closing just below the closing level of the previous candlestick. The second candlestick must be significantly smaller than the first.
Illustration:
Characteristic: A bearish atekubi often forms after a significant decline characterized by several large red Japanese candlesticks.
Significance: A line below the neckline (bearish atekubi) is a continuation pattern, it indicates a continuation of the bearish movement.
Note: For the structure to be validated, the next candlestick must be bearish and close below the opening level of the small bullish candlestick (green).
Invalidation: If the highest point on the small bullish candlestick surmounts the next candlestick, the structure can be considered invalidated.
