In the first part of the post, we looked at Equal open and close, Doji patterns and in the second part, we looked at Short body candles. In today’s post, we will discuss Long body candlestick patterns.
Long body candlestick patterns
Dark Cloud Cover:
Dark cloud cover candlestick patterns indicate an incoming bearish reversal.
A two candle pattern, the first candle is a long green bullish candle.
The next candle opens higher but reverses and declines, the candle then closes below the center of the first candle.
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In the first part of the post, we looked at Equal open and close, Doji patterns. In today’s post, we will discuss Short body candles.
Short body candles.
Long Shadow candles:
Long shadows are one of the more reliable candlestick patterns.
Candles with a long top shadow and short lower shadow show us that buyers dominate the market, these can lead to or continue a bull run in prices.
On the other end.
Candles with a long lower shadow and short upper shadow show us that sellers dominate the market and these candles can lead to or continue a bear run in prices.
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Here’s the deal, learning just a few key candlestick patterns WILL improve your ability to recognize trading opportunities and enter better trades! The Japanese have been using these patterns for centuries, to trade rice of all things! So, there is a rich history to the art of candlestick trading. Candlestick patterns are an integral part of technical analysis, candlestick patterns emerge because human actions and reactions are patterned and constantly replicate and are captured in the formation of the candles. So, by recognising these patterns and applying the lessons that the patterns teach, can and does yield results in your trading!
And isn’t that the aim of trading?
Now I know what your thinking!
BUT!
Don’t think of this as a list to memorize.
Think of this as a guide that you jump in and out of, whenever you need to jog your memory!
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