The Secret Of Candlestick Charting Louise Bedford.pdf [top] -

Introduction to Candlestick Charting

1. The Anatomy of the Candle

Bedford breaks down the "anatomy" of a candlestick: the real body, the shadows (wicks), and the range. She explains that a long white body indicates intense buying pressure, while a long black body signals strong selling pressure. The "shadows" tell the story of rejection—prices that were tested and rejected during the session.

Overview

• Reversal Patterns: The stars, hammers, and hanging men. These signal that a trend is running out of steam. Bedford details the "Morning Star" and "Evening Star" formations as some of the most reliable predictors of a trend change.
• Continuation Patterns: Windows (gaps) and various candle formations that suggest the current trend will continue.
• Doji Stars: The infamous cross-shaped candles that signify indecision in the market.

Many traders confuse Tweezer Tops with random resistance. Bedford teaches the "Railway Track" variation—where two consecutive long-bodied candles have identical highs/lows, but opposite colors. The Secret of Candlestick Charting Louise Bedford.pdf