LONG WHITE CANDLESTICK
Definition
This candlestick implies relatively strong buying pressure, and shows that prices advanced during the day significantly from open to close and the buyers were aggressive.
Recognition Criteria
1. The candlestick has a long white body.
Candlestick Requirements and Flexibility
The candlestick’s white body should be longer compared to the other candlesticks on the chart, while the lengths of the shadows are inconsequential.
Trader’s Behavior
This candlestick is generally bullish. However, its position within the broader technical context is also critical. It may indicate a potential turning point, suggesting that prices have reached a support level after an extended decline. If observed following a prolonged and significant rally, it may signal excessive bullishness and that prices are at dangerously high levels. Nonetheless, the candlestick alone is insufficient to determine market direction, as it reflects only one day of trading.