Glad to have you here at Joyful Dividends! You are reading a blog series on Introduction to Candlesticks. Today, we introduce you to the Long White Candlestick, which may occur as part of a bullish or bearish pattern. If you will like to check out a series of candlesticks for to help you invest profitably, please head over to Basic Candlesticks for a full list!
Long White Candlestick
The body of this candlestick is white and long compared to its shadows. Relative to other candles on the chart, the body should be around three times longer than the average body of the last 5 to 10 candles.
This basic candlestick signifies strong buying pressure where prices advanced during the day significantly. Buyers were aggressive.
Joyful Dividends Explains:
This candlestick is generally bullish. The candle can be both part of bullish or bearish patterns.
If found in an uptrend that is part of a long and significant rally, it may mean excessive bullishness and that prices are dangerously high. However, if this candle appears to break an important recent price resistance level, there is a good probability that the uptrend will continue. The higher the volume when the Long White Candle is being formed, the stronger is the buy signal.
If this candle is found in a period of extended decline, it may indicate a potential turning point and suggest that prices have reached a support level. The candle can appear as part of a larger pattern, such as the Bearish Engulfing or Dark Cloud Cover patterns.