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
Three River Bottom
by PRASHANT SHAH -
Three River Bottom Category: Reversal Type: Weak Three River bottom is a three-candle pattern doesn’t occur frequently but the formation is very interesting. It is a bullish trend reversal pattern that indicates that the strong bottom is in place. In the downtrend, the strong bearish candle appears which suggests that there is a strong bearish ... Read more
Upward Gap Tasuki
by PRASHANT SHAH -
Upward Gap Tasuki Category: Pullback Type: Strong In the uptrend, price gaps higher and forms the bullish session. The low price of the candle is higher than the high price of the previous candle, hence there is a rising window in the uptrend. In the next candle, price gaps down and opens lower than the ... Read more
Downward Gap Tasuki
by PRASHANT SHAH -
Downward Gap Tasuki Category: Pullback Type: Strong In the downtrend, price opens lower and forms the bearish session. The high price of the candle is lower than the low price of the previous candle, hence there is a falling window in the downtrend. In the next candle, price gaps up and opens higher than the ... Read more
