Short White Candlestick for Profitable Investing

basic-candlesticks

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

short-white-candlestick
Short White Candlestick

Criteria: 

The body of this candlestick is white and small. The lengths of the shadow are not important.

Information Conveyed: 

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.

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Disclaimer: Joyful Dividends is an independent and free website. All examples, charts, histories, tables, commentaries, or recommendations are for educational or informational purposes only. We do not receive compensation by any direct or indirect means from visitors and users of this website, and from the stocks, securities, institutions or any underwriters, brokers or dealers associated with the national or international forex, commodity and stock markets. By using Joyful Dividends, you agree that Joyful Dividends, its subsidiaries, affiliates, officers and employees shall not be liable for any direct, indirect, incidental, special or consequential damages.

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