Friday, May 11, 2012

Black Candlestick

Black Candlestick_NeutralBLACK CANDLESTICK
Type: Reversal/Continuation
Relevance: Indecision
Prior Trend: N/A
Reliability: Low
Confirmation: N/A
No. of Sticks: 1

The Black Candlestick represents normal selling pressure.

Recognition Criteria:
1. The real body of this pattern is black with normal length.

2. The upper and lower shadows are smaller than the length of the real body.

Explanation: Selling pressure is indicated by a Black Candlestick. The pattern shows that prices declined from open to close during the day and sellers were in control throughout this process.

Important Factors:
Like most other single candlestick patterns the Black Candlestick has low reliability. It reflects only one day's trading and can be interpreted both as a continuation and a reversal pattern. The pattern must be used with other candlesticks for a better or healthier confirmation of a trend.


Post a Comment