Candlestick body or body formation is an important process in a trading session.This is because there is a battle between buyer and seller traders, who will win it is he who will hold full control over the trading session.And if we scrutinize the strength of each camp, we will most likely get a profit because we can easily predict where the direction of price movements will continue.
Candlesticks that have short body shapes, long tails, and long tails below are called spinning tops regardless of whether they are black or white.This pattern or form shows that the strength of the buying and selling trader is equally strong in a trading session.
The small body shape shows that the price movement is not far between the opening and closing prices. And the tail formed indicates a fight between the seller and the buyer but no one can win it in a trading session.
If spinning tops are formed in an uptrend or an uptrend, this usually indicates that not many buyers are left and usually a reversal is likely to occur.
If spinning tops are formed in a downtrend or a downtrend, this usually indicates that not many sellers are left and usually a reversal is likely to occur.
Is a form of candlestick that has no tail either above or below and whether the body shape is black or white.The highest and lowest prices are the same as the closing and opening prices.For more details, please see the example of the Marubozu candlestick below.
White Marubozu is a candlestick with a long white body shape with no tail.The opening price is the same as the lowest price and the closing price is the same as the highest price .This is a bullish candlestick form that shows that the buyer’s trader is in full control of the trading session.This form is usually a signal of a reversal of direction or the signal continues to strengthen uptrend pattern.
Black Marubozu is a candlestick with a long black body shape with no tail.The opening price is the same as the highest price and the closing price is the same as the lowest price .This is a bearish candlestick form that shows that the seller trades in full control of the trading session.This form is usually a signal of a reversal of direction or the signal continues to strengthen the downtrend pattern.
is a candlestick that has a very thin body shape because the closing price is the same as the opening price.Candlestick doji shows that there is no power that can affect the opening price so that the closing price is right at the opening price or slightly away from the opening price.
There are four special forms of candlestick doji, the length of the tail either below or above the body is very diverse and if it is formed in the forex candlestick it will look like cross, inverted cross or plus.
If a doji is formed after a long white body candlestick (such as white marubozu), this doji will indicate that the buyer’s trader is getting tired and weak.Because to move prices continuously up many buyers are needed and because the amount has begun to decrease then the seller traders will know this condition and get ready to enter takes over the trading session and controls the price to go down.
If a doji is formed after a black candlestick with a long body shape (like black marubozu), this doji signal indicates that the seller’s trader is getting tired and weak.Because to move the price to continue down requires a lot of sellers and because the amount has been reduced then the buyer’s traders will know this condition and get ready to enter takes over the trading session and controls the price to go up.And if you are a stock trader this is the right time to get a cheap price opportunity .
Even though all of the above forms are a signal that a reversal of direction needs to be remembered and known that all of them also require a confirmation signal whether the possibility will occur or not
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