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
Windows
by PRASHANT SHAH -
Windows Windows is a very interesting concept on candlestick charts. Basically, Windows means gap between two candles. For example, the low price of the candle is higher than the high price of the previous candle. So, you will see the gap between the two candles. It is known as a ‘Gap’ as per the western ... Read more
Dark Cloud Cover Pattern
by PRASHANT SHAH -
Dark Cloud Cover Pattern Category: Reversal Type: Weak Dark cloud cover is a bearish reversal pattern that appears in the uptrend. Let’s assume that a strong bullish candle appears in the uptrend. The trend is bullish, the candle pattern is strong hence the scenario is bullish. Imagine that price gaps up in the next session. ... Read more
Piercing Pattern
by PRASHANT SHAH -
Piercing Pattern Category: Reversal Type: Weak Opposite of Dark cloud cover patter is a Piercing candlestick pattern. It is a bullish reversal candlestick pattern. Let’s assume that a strong bearish candle appears in the downtrend. The trend is bearish, the candle pattern is strong hence the scenario is bearish. Imagine that price gaps down in ... Read more
