Candlesticks Chart Setup Patterns

Candlesticks Consolidation Pattern and Candlesticks Continuation Pattern

Depending on the size and shape of a XAUUSD candle it is possible to determine strength of buyers or sellers. Likewise it is also possible to determine under-lying weakness of the buyers & the sellers.

Long Body Candles

Candles with long bodies show that there were a lot of buyers/sellers, depending on the color of the candle-stick.

When price makes a large move from the opening price to the closing price it shows the strength of buyers/sellers.

Long Blue Candlesticks - Strength of Buyers

Long Red Candles - Strength of Sellers

XAUUSD with Candle-sticks Setups Strategy Tutorial

Long Body Candles

Short Body Candlesticks

Candlesticks with short bodies show that there were not so many buyers/sellers and the price did not move much from the opening price to the closing price.

These show that the buyers/sellers were not very strong.

Short Body Candles

Marubozu Candlestick

Marubozu are long candles that have no upper or lower shadows, Like depicted and shown below.

Marubozu Trading Candle-sticks

Marubozu are continuing candlestick setups which show price is going to continue in the same direction as that of marubozu candlesticks. The marubozu can be white/blue or Black/red depending on the direction of the market trend.

Marubozu Candles

White marubozu - the open is also the low and the close also is the high.

Marubozu means there were no retracements during that price period and therefore shows that buyers were in full control of the price.

White Marubozu is a continuation pattern meaning that the next candlestick is likely to continue in same upwards trend direction.

Black marubozu - the open is also the high & the close also is low.

Marubozu means there were no retracements and therefore illustrates that sellers were in total control of the price.

Black Marubozu is a continuation pattern meaning that the next candlestick is likely to continue in same downwards trend direction.

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