CandleSticks And Interpretation Flashcards
What Type of Candle is this?
Long Wick Candles
What two things are we looking for in a long wick candle that make it better?
The smaller the body
The longer the wick
What is the psychology behind a long wick candle?
It tried to push past either the key level above or below, but did not have enough momentum and caused the wick.
What is the psychology behind multiple long wick candles?
Tried to push past support/resistance multiple times and could not push through
What candlestick formation is this?
Inverted long wick candle
What is the psychology behind inverted long wick candles?
Tried to push at levels of support/resistance, but could not push through and had strong presence in the opposite direction
What Candlestick formation is this?
Inside bar candle
What is the psychology behind an inside bar candle
Market could not push past the key support/resistance levels and instead stayed within the last candles body
What candle formation is this?
Consecutive shrinking candles
What is the psychology behind consecutive shorter candles?
Loss in momentum in the specific direction of either resistance/support
What candle formation is this?
Consecutive growing candles
What is the psychology behind consecutive growing candles?
Shows strong presence in the direction its going to either support or resistance levels
What candle formation is this?
Color change candle
What is the psychology behind reverse color candle?
Strong presence in one direction and then color change showing direction/momentum has changed to opposite
What candle formation is this?
The momentum candle
