LONG
BLACK CANDLESTICK| Type: | Reversal/Continuation |
| Relevance: | Bearish |
| Prior Trend: | N/A |
| Reliability: | Low |
| Confirmation: | Required |
| No. of Sticks: | 1 |
Recognition Criteria:
1. The real body is black and it is relatively long.
2. The sizes of the upper and lower shadows are not important.
Explanation:
Long Black Candlesticks are indicators of strong selling pressure. A longer black candlestick means that the close is further below the opening price. The prices decline significantly following the opening showing that sellers were aggressive. Long Black Candlesticks are generally bearish formations however their interpretation also depends on their position within the broader technical picture. A Long Black Candlestick may warn a turning point or mark a future resistance level after a long rally. However Long Black Candlestick may signal panic or capitulation if it appears after a long decline.
Important Factors:
The Long Black Candlestick is a single candlestick pattern with low reliability. It only reflects one day's trading and may both be pointing out to continuation or reversal. Thus it requires consideration of other candlesticks to confirm a trend.
1. The real body is black and it is relatively long.
2. The sizes of the upper and lower shadows are not important.
Explanation:
Long Black Candlesticks are indicators of strong selling pressure. A longer black candlestick means that the close is further below the opening price. The prices decline significantly following the opening showing that sellers were aggressive. Long Black Candlesticks are generally bearish formations however their interpretation also depends on their position within the broader technical picture. A Long Black Candlestick may warn a turning point or mark a future resistance level after a long rally. However Long Black Candlestick may signal panic or capitulation if it appears after a long decline.
Important Factors:
The Long Black Candlestick is a single candlestick pattern with low reliability. It only reflects one day's trading and may both be pointing out to continuation or reversal. Thus it requires consideration of other candlesticks to confirm a trend.
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