We already know the basic information about long and short body and long or short upper lower shadow, now the question is how do we know when a candlestick body is classified as long or short body? And when a shadow is classified as long or short shadow?
Regarding the size of the candlestick body, we know four important measures are:
- Long candlestick (white or black)
- Short candlestick (white or black)
- Medium Candlestick
- doji candlestick (candlestick with a very short body or no body at all where the open price is the same as the close price)
For more details, look at the following picture,
Formation A is long candlestick, formation B is medium candlestick, formation C is short candlestick and formation D is doji candlestick.
It is very easy to determine the long, medium, short and doji candlestick based on the picture above, now how are we if faced with images like this.
Can you determine which is called the long candlestick, short candlestick, medium candlestick or a doji candlestick from the picture above?
You certainly could just suppose which the candlestick is included in category of long, which in category of medium, short or doji, but the analysis that you make is still very bias, and highly debatable, why? because of what you are categorized as long may be identified as the short or medium by others and vice versa, why? because of we may just look at the same picture, but we will certainly have a different interpretation. Why this is happen? the answer is simple, because we have not had definite guidelines about what is called the long, short and doji of candlestick.
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