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4 Important Candlestick Elements to Know In Analyzing Candlesticks

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Before we do candlestick analysis, we need to know the 4 important elements located in candlesticks.

Here are 4 important elements in candlesticks.

  1. candlestick body length
  2. candlestick tail length
  3. Candlestick length and tail ratio
  4. candlestick body position

candlestick body
As we saw above, that large body and short tail candlestick indicate a strong price movement.
If we look at the longer the body and the shorter the tail, the greater the strength.

candlestick hammer
The figure above shows that the length and position of the body at the end indicate rejection and potential changes in the direction of the trend.

doji

This last image shows the tail on both sides and the position of the body in the middle indicates market doubt and balanced market forces.
We see the longer the tail and the smaller the body in the middle of the candle, which shows the lingering market doubts.

The appearance of candlesticks on each broker may be different. But by understanding the 4 elements mentioned above, The element is that we can still read candlesticks accurately, although how it looks on the chart. 


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