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White Candles

Posted in : Candle Types

(added few months ago!)

The most bullish of the candlestick patterns is the Long White Candle. It is represents the day when the bulls had been in total control of the market push the prices higher and higher from start to the close. Bulls keep on pushing the prices all day until they close astatine the high of the day.

White Candles

What this means is that odds ar the bulls will return the next day and start pushing the prices up again. The Japanese name for the Bullish White Candle is Marubozu. A long white candle is characterized by the fact that open is equal to the low of the day and the close is equal to the high of the day indicating that prices have been rising throughout the day without any letup or slowdown.

In practical terms, it is not necessary for the open to equal to the low or the close to equal the high of the day. As long as open and low ar close enough and the close and the high are close enough, you can treat it as a long white candle. When prices cover a lot of distance in one day, they normally make a retracement. So on the long white candle day, the low price is a good support level.

Now support is the level where buyers step in to buy the currency pair or the stock or the security in large number as they consider the price to be low enough to be a good buy. You can take the low of the long white candle to be a good support level for the next few days as normally buyers would step in astatine this level and start buying in large numbers pushing the prices back up again.

Tags : White, Candles

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(added few months ago!) / 156 views