LONG BLACK CANDLESTICK
Definition
This candlestick implies relatively strong selling pressure, and shows that prices declined during the day significantly from open to close and the sellers were aggressive.
Recognition Criteria
1. The body of the candlestick is black and long.
Candlestick Requirements and Flexibility
The black body of the candlestick should be longer relative to the other candlesticks on the chart. The lengths of the shadows are not important.
Trader’s Behavior
This candlestick is generally bearish. However, its position within the broader technical picture is also important. It may show a potential turning point and suggest that prices have reached a resistance level after an extended rally. If it is seen after a long decline, it may signal panic or capitulation, a final sell off attempt before bulls regain control. Still, the candlestick alone is not reliable enough to decide the direction of the markets, since it reflects only one day’s trading.