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 Inside Out Pattern – Bearish
by PRASHANT SHAH -
Three Inside Out Pattern – Bearish Category: Reversal Type: Strong Three Inside Out is a three-candle bearish trend reversal pattern. A bullish candlestick pattern is followed by a bearish candlestick pattern that opens below the closing price and closes above the opening price of its previous candlestick pattern. In other words, the body of the ... Read more
Single Candlestick patterns
by PRASHANT SHAH -
Single Candlestick pattern Even a single candle has a lot of useful information from the analysis perspective. We discussed that a candle consists of Open, High, Low, and closing price of the session. It gives us all important information regarding a particular session. We can’t get to know whether High appeared first or Low by ... Read more
Three Outside Up Pattern – Bullish
by PRASHANT SHAH -
Three Outside Up Pattern – Bullish Category: Reversal Type: Strong Three Outside Up is a three-candle bullish trend reversal pattern. A bearish candlestick pattern is followed by a bullish candlestick pattern that opens below the closing price and closes above the opening price of its previous candlestick pattern. In other words, the body of the ... Read more
