Hello and welcome to Joyful Dividends! We aim to help you invest profitably in the stock markets by developing skills in fundamental and technical analysis. It doesn’t matter if you are financially trained or not. Anyone can acquire these simple skills to succeed in the stock market. In today’s post, we introduce the short white candlestick.
Following up from our Introduction to Candlesticks page, we introduced a list of basic candlesticks that can help you make profitable trading decisions. Here’s one basic candlestick to start off with.
Short White Candlestick
The body of this candlestick is white and small. The lengths of the shadow are not important.
The short white candlestick implies relatively weak buying pressure on the stock with limited movement in its price.
Joyful Dividends Explains:
When analyzing candlesticks, it is important to take the market context into consideration. Short candlesticks like this occurring after a strong trend made up of long candles indicate only a temporary correction. This is especially so when a few short candles (alternating between white and black) occur in a series.
The Short White Candle can also be part of a larger candlestick pattern, signalling a potential trend reversal.