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
Abandoned Baby Bottom
by PRASHANT SHAH -
Category: Reversal, Type: Strong Abandoned baby bottom is a three-candle formation. It is similar to the three morning star pattern we discussed earlier. A bearish candle in the downtrend is followed by a small body candle that opens below the body of the previous candle with a body gap (gap between bodies). The second gapping ... Read more
Abandoned Baby Top
by PRASHANT SHAH -
Category: Reversal, Type: Strong Abandoned baby top is a three-candle formation. It is similar to the three evening star pattern we discussed earlier. . A bullish candle in the uptrend is followed by a small body candle that opens above the body of the previous candle with a body gap (gap between bodies). The second ... Read more
Side-by-side Green Lines – Bearish
by PRASHANT SHAH -
Side-by-side Green lines – Bearish Category: Pullback Type: Strong Normally, the bearish patterns are opposite of bullish patterns. But they are almost similar in this case. Imagine a strong bearish candle appears in the uptrend. The next candle gaps down. The high of current session is lower than the low of the previous session hence ... Read more
