Windows are what we refer to as gaps for the Japanese. A Window is a space between the real bodies of 2 candles where shadows do not overlap in any way. The size of the Window is not important.
Japanese expressions - « Go in the direction of the Window. » means Windows are continuation signals.
- « Closing the Window » means filling the gap.
- « Corrections stop at the Window. » means Windows can become support and resistance areas.
Falling Window - Bearish continuation pattern
- The Window exhibits a space between the previous candle's low and the current candle's high
- The current candle gaps down at the open
- The gap between the 2 candles includes the real bodies and the shadows
- The key resistance area is the top of the Window
- The resistance is broken with a close above the top of the Window
Rising Window - Bullish continuation pattern
- The Window exhibits a space between the previous candle's high and the current candle's low
- The current candle gaps up at the open
- The gap between the 2 candles includes the real bodies and the shadows
- The key support area is the the bottom of the Window
- The support is broken with a close below the bottom of the Rising Window
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