Hi Its been a while since my last post. In this post I have represented selective candlestick reversal patterns.
In a candlestick, "body" represents the distance between candle OPEN and CLOSING price. Whereas "wicks" represent the entire range of the candle from TOP to the BOTTOM.
In most of these patterns only bodies are important. There are no conditions for wicks unless specifically mentioned like in abandoned baby star and (first two candles of) shooting star pattern. In an abandoned baby star pattern the wicks of the second day should not overlap with the wicks of first and third day. But there can be wick overlapping in morning and evening stars where the condition is for bodies only. Similarly in shooting star, the second day should not overlap with the first day (not even wicks) whereas the third day may have some overlapping.
One should always try these patterns with some sort of confirmation in the form of volume or overbought/oversold scenarios etc. While taking a trade based on these patterns one should follow money management and trade management principles.
I hope this post will update your knowledge in one way or the other.
Do not forget to like and comment (for any doubts) to encourage writing on trading view.
Regards JJSingh
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Also refer
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The importance or significance of any candlestick pattern depends upon thier location in the overall market structure. We cannot see a pattern in isolation. Best places to look for these patterns are: Support and resistance; Trendlines/channels; Trending moving averages
Can you add a few more places where they gain significance?
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Thanks for your support to the post. I will try to post some more useful stuff in the coming days.
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If you are still confused with where/how to use above patterns then go through the following post:
Can u please draw candle with 25% upside wick and 25% downside wick and 50 % body ( red color).....
How to interpret this candle ??
Bravetotrade
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@prasadgalande, Under normal conditions if the range from high to low is wide, it will be bullish if it is green and bearish if red.
But if range is narrow, it may look like a spinning top which has different interpretations under different scenarios.
All candlestick patterns gain significance from the market structure in which they operate. So they should not be seen in isolation.