Dragonflies, crosses, and Toba candlesticks explained【Japanese stock trading essence】

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Japanese Stock Trading Essentials

Title: Explaining Doji, Cross, and Tombstone Candlestick Patterns【Japanese Stock Trading Essentials】

Source: Amigo Investment School

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This page discusses the candlestick patterns

Doji, Cross, and Tombstone patterns

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Below are images of candlestick patterns.

Here, three candlestick patterns are explained.

We will look at the three types: Tombstone, Tombstone-like, and Cross shapes.

The tombstone candlestick is one of the candlestick patterns that shows a specific shape on price charts.

The Tombstone shape is characterized as follows:

1. There is a long upper shadow (bearish) or a long lower shadow (bullish), with the body (the solid part) being very small.
2. 
   
3. The tombstone shape suggests a potential market reversal point.
4. For example, a tombstone with a long bullish candle at the top can indicate a shift from selling to buying.

The tombstone pattern should be considered not in isolation but in relation to neighboring candles and preceding/following market conditions.

There are cases where a high likelihood of a trend reversal exists, but also temporary fluctuations, so it is important to make trading decisions by combining with other technical analyses.

The detailed assessment method is described below.