
Types of candles
1. long day candles
2. short day cancles
In technical analysis, a long day candle is a candlestick chart pattern that has a long body with a small or non-existent wick. This indicates that the security’s price has moved significantly in one direction over the course of the day and that there has been little price reversal. A long day candle is generally seen as a bullish pattern, indicating that buyers are in control and that the price may continue to rise.
On the other hand, a short day candle is a candlestick chart pattern that has a small body with long wicks on both ends. This indicates that the security’s price has fluctuated significantly over the course of the day and that there has been a lot of price reversal. A short day candle is generally seen as a bearish pattern, indicating that sellers are in control and that the price may continue to fall.
Candlestick chart patterns can be used in conjunction with other technical analysis tools and indicators to help traders make informed decisions about the direction and strength of a security’s price. It is important to note, however, that candlestick chart patterns are just one tool among many and should not be relied upon in isolation. Technical analysis is just one approach to evaluating securities, and it is important to consider other factors such as fundamental analysis and market conditions when making investment decisions.
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