Candlesticks Chart Setup Patterns

Candlesticks Consolidation Pattern and Candles Continuation Pattern

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

Long Body Candlesticks

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

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

Long Blue Candles - Strength of Buyers

Long Red Candles - Strength of Sellers

XAU/USD with Candle-sticks Setups Strategy Tutorial

Long Body Candles

Short Body Candles

Candles 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 Candlesticks

Marubozu Candlestick

Marubozu are long candlesticks that have no upper or lower shadows, Like depicted & 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 direction of the market trend.

Marubozu Candlesticks

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

Marubozu means that there were no retracements during that the price period & hence 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 and the close also is low.

Marubozu means that there were no retracements and hence 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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