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
Bullish Harami
by PRASHANT SHAH -
Bullish Harami Category: Reversal Type: Weak Harami is a two-candle formation. Imagine a bearish candle appears in downtrend followed by the open within the body. That means current session opening is between the open and close of previous bearish session. The session turns out to be bullish and price closes above the current session opening ... Read more
Bearish Harami
by PRASHANT SHAH -
Bearish Harami Category: Reversal Type: Weak Harami is a two-candle formation. Imagine a bullish candle appears in uptrend followed by the open within the body. That means current session opening is between the open and close of previous bullish session. The session turns out to be bearish and price closes below the current session opening ... Read more
Bullish Separating Lines
by PRASHANT SHAH -
Bullish Separating Lines Category: Continuation Type: Strong Bullish Separating lines is a two-candle bullish continuation pattern. Imagine a bearish candle appearing in a strong uptrend. It is a matter of concern for the bulls and the sign of a reversal of the uptrend. Markets went up too much so some bullish traders who were worried ... Read more
