Tuesday, January 6, 2009

Candlestick chart: Short and Long Bodies

Longer body indicates more intense buying or selling force or pressure.
Shorter body indicates little price movement and represent consolidation


Long hollow (white) candlestick indicates:-
- Intense buying pressure.
- The longer the white candlestick, the higher level is the close above the open. In other words, prices went up appreciably from open prices and buyers are aggressive.
- Potential turning point or support level after an extended decline.


Long filled (black) candlestick indicates:-
- Intense selling pressure
- The longer the black candlestick, the lower level is the close below the open.
In other words, prices went down appreciably from open prices and sellers are aggressive.
- Potential turning point or resistance level after a long advance.

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