Candlesticker by Americanbulls.com - Long Black Candlestick Pattern

Long Black Candlestick Pattern

LONG BLACK CANDLESTICK

Type:	Reversal/Continuation
Relevance:	Bearish
Prior Trend:	N/A
Reliability:	Low
Confirmation:	Required
No. of Sticks:	1

Definition:

The Long Black Candlestick signals strong selling pressure in the market.

Recognition Criteria:

1. The real body is black and it is relatively long.
2. The sizes of the upper and lower shadows are not important.

Explanation:

Long Black Candlesticks are indicators of strong selling pressure. A longer black candlestick means that the close is further below the opening price. The prices decline significantly following the opening showing that sellers were aggressive. Long Black Candlesticks are generally bearish formations however their interpretation also depends on their position within the broader technical picture. A Long Black Candlestick may warn a turning point or mark a future resistance level after a long rally. However Long Black Candlestick may signal panic or capitulation if it appears after a long decline.

Important Factors:

The Long Black Candlestick is a single candlestick pattern with low reliability. It only reflects one day's trading and may both be pointing out to continuation or reversal. Thus it requires consideration of other candlesticks to confirm a trend.

	Disclaimer
	The candlestick patterns explained herein are intended to inform. They come with no warranty of any kind. If you should choose this information for your investment decisions, you do so at your own risk. Investing can be a very dangerous venture and it is you who must assume the entire cost and risk involved in all of your investment decisions, should you choose to follow this system or use this information. The information contained on the Candlesticker.com web site is drawn from sources believed to be factual and reliable, but in no way does Candlesticker.com represent or guarantee the accuracy or completeness thereof, nor in providing it, does Candlesticker.com assume any liability. The information found on the Candlesticker.com web site is protected by the copyright laws of the United States and may not be copied, or reproduced in any way without the expressed, written consent of the editors.