Investor Education Pattern Recognition SHORT LINE CANDLE

Financial Indicator

Equity pattern-recognition tool provides you with the Pattern Recognition execution environment for running SHORT LINE CANDLE recognition against Equity. Equity momentum indicators are usually used to generate trading rules based on assumptions that Equity trends in prices tend to continue for long periods.
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Taking this a step further, you have to also note how long the wicks are because this can be an indication of what the market is doing. The body represents the open and close, but the wicks indicate the full trading range for that given period. When you look at the range, you may also want to look at the volume levels compare the surrounding candles. With a large body and an influx of volume, this could indicate indecision in the market. Similarly, if the volume is lower, this could mean the market is uninterested in the product.

Candlestick charts allow the user to view open, highs, lows, and closes for any given period they choose. The style of the candles can also tell a story depending on what you are looking for. With short line candles, it can tell you that the market may not know where price wants to go. A short line candle is when a candle forms and there is a short body, indicating that the open and close are similar, cause the body to be small.


Be sure to understand the other similar patterns that are out there such as Doji, which can look similar to a short line candle, but mean something different. Some tools you can use this with include Bollinger Bands and Pivot Points. These can help you find markets that may be changing and allow you time to enter and exit a position.  

Short line candles are a wonderful to be alerted to a shift in the market, but as with all patterns, they are not one hundred percent. Utilize fundamental analysis and other tools to formulate a solid opinion. Each person has different objectives and this may not be for you. Be sure to look at all of MacroAxis and find the right tool for your portfolio management.

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