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
Doji & Types of Doji
by PRASHANT SHAH -
Doji Category: Reversal & Continuation Doji is a single candlestick pattern which has ‘No body’, only shadows. Having no body in the candle would mean that there is no difference between the Open and the Close price. Hence, only a line is plotted in the candle instead of the body. The line appears at the ... Read more
Hammer & Hanging man Pattern
by PRASHANT SHAH -
Hammer & Hanging man Pattern Category: Reversal Type: Weak Hammer or Hanging man are a single candlestick pattern with no or a very little upper shadow. The pattern looks like the Hammer, hence the name. The major feature of this pattern is the long lower shadow. Longer the lower shadow, stronger the pattern. To quantify, ... Read more
Inverted Hammer & Shooting Star Pattern
by PRASHANT SHAH -
Inverted Hammer & Shooting Star Pattern Category: Reversal Type: Weak This pattern is opposite of Hammer pattern. It is a single candle pattern with no or a very little lower shadow. The major feature of this pattern is the long upper shadow. Longer the upper shadow, stronger the pattern. Like Hammer pattern, the upper shadow ... Read more
