Friday, May 11, 2012

Short Black Candlestick

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

The Short Black Candlestick implies relatively weak selling pressure with little price movement.

Recognition Criteria:
1. The real body of this pattern is black and short.

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

Explanation: The Short Black Candlestick signals a possible consolidation.

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


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