Long White Day Candlestick Pattern — How to trade them
The long white day candlestick is a very reliable bullish reversal pattern. It should be noted, however, that this pattern can also occur at market bottoms. In this case, it would be a bearish reversal pattern.
If you see a long white day candlestick on a chart, pay close attention to the price action in the following days. If the bulls can maintain control and prices continue to move higher, then this is a very bullish sign. But if the bears take control and prices start to fall, then this pattern has failed and you should be prepared to take profits or exit your position.
How to recognize?
- This candle is easy to recognize because it is only composed of 1 candle
- Made up of long body, longer than previous candles on the chart
- The length of this candle should completely contain previous candles on the chart
How to trade?
The long white candlestick is a bullish reversal pattern that can be used to trade the markets. There are a few ways to trade this pattern, but one way is to look for a long white candlestick to form after a period of consolidation or a downtrend. This signals that the market is ready to move higher and that the buyers are in control. Another way to trade this pattern is to look for a long white candlestick to form after an upthrust. This signals that the market is ready to move higher and that the buyers are in control.
Learn more about candlestick patterns and unlock more trading opportunities using this mobile app — Trading: Candlestick Patterns on Google Play Store
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