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 underlying weakness of the buyers & sellers.
Long Body Candles
Candlesticks with long bodies show that there were a lot of buyers/sellers, depending on the color of the candle-stick.
When price makes a huge 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
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 & 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 trend.
Marubozu Candles
White marubozu - the open is also the low and the close is also the high.
Marubozu means there were no retracements during that price period and therefore shows that buyers were in total control of the price.
White Marubozu is a continuation pattern meaning that the next candle is likely to continue in same upwards trend direction.
Black marubozu - the open is also the high and the close is also low.
Marubozu means there were no retracements and therefore shows that sellers were in total control of the price.
Black Marubozu is a continuation pattern meaning that the next candle is likely to continue in same downwards trend direction.
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