Definition:
The Long White Candlestick is a signal indicating strong
buying pressure.
Recognition Criteria:
1. The real body of the Long White Candlestick has
a relatively longer length relative to other candlesticks
on the chart.
2. The sizes of the upper and lower shadows are not
important.
Explanation:
Long White Candlesticks show strong buying pressure.
A longer white candlestick is indicative of the fact
that the closing price is further above the opening
price. The Long White Candlestick shows that the prices
advanced significantly from open to close during the
day under strong buying pressure and buyers were aggressive.
The Long White Candlestick is generally a bullish pattern,
however its position within the broader technical picture
is also important. For example; Long White Candlesticks
may show a potential turning point or they may show
that prices have reached to a support level if they
are seen after an extended decline. If a Long White
Candlestick is seen after a long and significant rally,
it can point out to excessive bullishness in the market
that says that prices are at dangerously high levels.
Important Factors:
The Long White Candlestick is a single candlestick
pattern and it is not reliable as such. It reflects
only one day's trading. It may show continuation of
a trend as well as a possible reversal. Adjacent candlesticks
must be taken into consideration for a healthier decision
regarding the status of the trend.
