Narrow Range Candles
by PRASHANT SHAH -
A candle’s range is the difference between its high and low price. A higher range indicates a strong trend or increased volatility during the session. Low range shows a lackluster price trend and a lack of momentum. Generally, this does not relate to candlestick patterns, but rather the range of candles is analyzed by participants ... Read more
Wide Range Candles
by PRASHANT SHAH -
W4 W4 stands for Wide Range 4. A W4 pattern is qualified if the candle’s range is the highest in the last 4 sessions. The difference between the high and low of the current session is the highest in the last four sessions. It shows that the trend is strong and momentum is in favor. ... Read more
Back-testing of candlestick patterns
by PRASHANT SHAH -
We have discussed various candlestick patterns. Many such patterns exist, and new patterns are continually being developed. People use it in different ways. There are many traders who perform subjective analysis, who observe patterns and make decisions based on their observations. Some traders use it in conjunction with other tools and indicators. Some traders create ... Read more
Ladder Bottom
by PRASHANT SHAH -
Ladder Bottom Category: Reversal Type: Weak Latter Bottom is not very common but an interesting trend reversal formation. Imagine four consecutive bearish candles appearing in the downtrend. There is a series of lower high, lower low and lower closing prices. The trend and price action are very bearish. In the next session, price opens higher ... Read more
Ladder Top
by PRASHANT SHAH -
Ladder Top Category: Reversal Type: Weak Latter Top is not very common but an interesting trend reversal formation. Imagine four consecutive bullish candles appearing in the uptrend. There is a series of higher low, higher high and higher closing prices. The trend and price action are very bullish. In the next session, price opens lower ... Read more
Three Inside Out Pattern – Bullish
by PRASHANT SHAH -
Three Inside Out Pattern – Bullish Category: Reversal Type: Strong Three Inside Out is a three-candle bullish trend reversal pattern. A bearish candlestick pattern is followed by a bullish candlestick pattern that opens above the closing price and closes below the opening price of its previous candlestick pattern. In other words, the body of the ... Read more
