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Candlestick Long v/s short body

18/10/2009 by admin

In General , the longer the body is, the more intense will be pressure on buying and selling and in contradiction to it ,short candlesticks indicates  little price movement and represent consolidation.
Long white candlesticks show strong buying pressure. The longer the white candlestick is, the further the close is above the open indicateing  that prices advanced significantly from open to close and buyers were aggressive. While long white candlesticks are generally bullish, much depends on their position within the broader technical picture. After extended declining , long white candlesticks can mark a potential turning point or support level. If buying gets too aggressive after a long advance, it can lead to excessive bullishness.
Long black candlesticks show strong selling pressure. The longer the black candlestick is, the further the close is below the open indicating  that prices declined significantly from the open and sellers were aggressive. After a long advance, a long black candlestick can foreshadow a turning point or mark a future resistance level. After a long decline a long black candlestick can indicate panic or capitulation.

Even more potent long candlesticks are the Marubozu brothers, Black and White. Marubozu do not have upper or lower shadows and in it the high and low are represented by the open or close. A White Marubozu forms when the open equals the low and the close equals the high indicating  that buyers are controlling  the price action from the first trade to the last trade. Black Marubozu form when the open equals the high and the close equals the low indicating that  sellers are controlling  the price action from the first trade to the last trade.

Filed Under: Share Market Basics Tagged With: Candlestick Long v/s short body, indepth details of candlestick, More informations on candlestick

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