Its intriguing that two candles with the exact same body and wick measurements, even with all the indicator values matching, can actually encompass price-momentum towards opposite directions.
I have outlined two possible scenarios per each candle type. Note that regardless of the candle type - bull or bear, the last C wave and the main B wave of price within the candle may well be in the opposite direction.
What do you think? I personally think its important information hidden within a candle.
Didn't think about this... Very good info !Thanks .
fxmillions
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Glad it helped. This is why we often get a bullish weekly candles with plenty of bearish trends on the H4/hourly charts or vice versa. This also makes multi-timeframe analysis an essential for day trading. I'm currently exploring the significance of these 'reverse candles.'