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Long Line Candle and Short Line Candle

by admin April 5, 2019 2 min read 0 comments

Key Takeaways

  • Market conditions and their impact on trading decisions
  • Key levels and price action analysis
  • Risk management strategies for this setup

Short Line Candle

– They are Candles with a short or very short Real Body, thus with a small difference between the Opening Price (Open) and the Closing Price (Close); it means that the Price is slightly increased or decreased during the Period of time that the Candle represents.

Long Line Candle

– They are Candles with a long or very long Real Body, thus with a big difference between the Opening Price (Open) and the Closing Price (Close); it means that the Price is greatly increased or decreased during the Period of time that Candle represents.

– A Long Line can be a signal of reversal of a current Trend, if it is very long and has opposite colour than the Previous Candles.

– A Long Line must have a long or very long Real Body: to understand if the Real Body is long enough, you have to check the Real Bodies of the Previous Candles, and the Real Body of the Long Line has to be longer than the average of the Previous Real Bodies that you’ve just checked. (For example, we have a Long Candle that has a Real body of X value, while the average of the Real Bodies of the previous Candles is Y: if X is greater than Y, that is a Long Line; if not, that is not a Long Line but just a “long” Candle).

Trading Data Snapshot

Always verify current market conditions before executing any trade. Past performance does not guarantee future results.

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admin
Trading analyst and market commentator with expertise in technical analysis, price action, and risk management. Dedicated to helping traders make informed decisions.

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