Friday, May 11, 2012

Short White Candlestick

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

The Short White Candlestick represents relatively weak buying pressure with little price movement.

Recognition Criteria:
1. The real body of the candle is white and small.

2. The upper and lower shadows are smaller than the length of the real body.
Explanation: The Short White Candlestick signals consolidation.

Important Factors:
The Short White Candlestick is not reliable since it is a single candlestick pattern. Only one day’s trading is reflected in this pattern. It may show continuation of the trend as well as reversal. Other neighboring patterns must be taken into consideration for a healthier decision regarding the status of the trend.


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