Black Candlestick Pattern In Forex

As compared to traditional bar charts, most traders find candlestick charts easy to read and visually more appealing. The trader finds it easy to interpret the relationship between the open and close as well as the high and low. Let us study the black candlestick pattern in detail.

The Black Candlestick pattern represents normal selling pressure. The real body is is black with normal length, with smaller upper and lower shadows. Black Candlestick shows that prices declined from open to close during the day , with sellers controlling the trade throughout this process. Black Candlestick pattern has low reliability reflecting only one day's trading. One should use the pattern with other candlesticks for a better interpretation of a trend.

Signaling strong selling pressure in the market, the Long Black Candlestick has a real body which black and it is relatively long. The upper and lower shadows sizes are not important. Indicating a strong selling pressure, the long black candlestick pattern means that the close is further below the opening price. Bearish in nature, they may warn a turning point or mark a future resistance level after a long rally. If long black candlestick pattern appears after a long decline, it may signal panic or capitulation.

As with other patterns, long black candlestick reflects one day's trading and must be used with other candlesticks to confirm a trend.

The real body of the Short Black Candlestick is black and short. Implying relatively weak selling pressure with little price movement, the upper and lower shadows are smaller than the length of the real body. Offering low reliability and reflecting only one day's trading, the Short Black Candlestick pattern must be used with other candlesticks for a better confirmation of a trend.