YING YANG Traditionally the Japanese attribute yang qualities

Traditionally the Japanese attribute yang qualities (expansion) to bullish candles and yin qualities (contraction) to bearish candles. When the yang reaches an extreme there is stillness, and stillness gives rise to yin. A reversal in market forces follows the same principle: a tall bullish candle showing a yang quality gives rise to stillness expressed in the small real body of the following candle; and the stillness gives rise to yin, which emerges in the form of a long bearish candle that completes the reversal pattern. This balance between ying and yang forces is another way to look at swing movements in price similar to the wave principles covered in the previous chapter B03.

Candles can be used across all time frames — from intraday to monthly charts. For example, on a weekly chart, an individual candle line would be composed of Monday's open, Friday's close and the high and low of the week; while a four hour candle would comprise the same price levels for that time period.