Saturday, June 04, 2011

Long black candlesticks selling pressure


Long black candlesticks show strong selling pressure. The longer the black candlestick is additionally closed under open. This suggests that prices have dropped significantly from the open and sellers were aggressive. After a long advance, a long black candlestick can foreshadow a turning point or a sign of future resistance level. After a long decline in long black candlestick can indicate panic or capitulation.

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