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 Outside Up Pattern – Bearish
by PRASHANT SHAH -
Three Outside Up Pattern – Bearish Category: Reversal Type: Strong Bearish Three Outside Up is a three-candle bearish trend reversal pattern. A bullish candlestick pattern is followed by a bearish 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 ... Read more
Belt hold line
by PRASHANT SHAH -
Belt hold line Category: Continuation, Reversal & Pullback Type: Strong A bullish belt-hold line is strong bullish candlestick pattern which opens at the low of the session and closes at high of the session. So, there is only body in this candle, no shadow. It shows the strong trend. Practically, there can be small shadows ... Read more
All Patterns at a Glance
by PRASHANT SHAH -
A candle for a particular time period is built using four prices: Open, High, Low and Close. If Close is higher than Open, it is a bullish candle (green). If Close is lower than the Open, the candle is bearish (red). The price area between Open and Close is known as body. the wicks are ... Read more
