For a better understanding of this article, you should already know what Japanese Candlesticks are and all their features; for this reason, we suggest you to read this introductory article to Japanese Candlesticks: Japanese Candlestick Chart ( So that you can understand also the Ratings given to the Candlestick Patterns for the “quality” of the signal and for their frequency to “appear” on Charts).
Let’s analyze now the following Candlesticks Pattern: “Above The Stomach” and “Below The Stomach”.
Above Below The Stomach Pattern
– Normally it should be a signal of reversal of the current Trend.
– You can find it in the variants: Above and Below, depending on the Trend in which is located.
Above The Stomach
– It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern .
– The First Candle is black.
– The Second Candle is white; it has the Open above or at the same level of the midpoint of the Real Body of the First Candle. Whereas it has the Close above the Close of the First Candle and above the midpoint of the Real Body of the First Candle.
Below The Stomach
– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern .
– The First Candle is long and white.
– The Second Candle is black (Although it could be also white); it has the Open below or at the same level of the midpoint of the Real Body of the First Candle. Whereas it has the Close below the Open of the First Candle and below the midpoint of the Real Body of the First Candle (In the case which the Second Candle is black).