Downtrending white candlesticks

Discussion in 'Technical Analysis' started by danielcork1, Apr 3, 2007.

  1. OK guys, please be patient i'm a relative newbie to this whole field of TA! What I don't get is how white candlesticks can seemingly downtrend? If the top of the realbody represents the close, and the closes are getting lower on the Y-axis (i.e lowering) then surely the security is downtrending? I can't figure this one out!
  2. You should post a chart example because from what you said...

    It's sounds like your wondering how the open and close of a white candlestick occurs as a down candlestick line in a downtrend.

    If so...your obviously talking about a GAP.

    For example...its a down trend and the prior candlestick line is a dark line with a Open @ 1200 and a Close @ 1180.

    The following next candlestick line is a white line with a Close @ 1170 and a Open @ 1140.

    Thus, there's a 40 point Down Gap while the closes went lower.

    This type of price action is not uncommon.

    Simply, the price action before the White Line that GAP down may be in a downtrend but the White Line is counter-thrust attempt...

    What happens after that is dependent upon market conditions and the price action involving the prior price action and the white line.

    Thus, you can't determine price direction on one candlestick line all by itself with any kind'uv consistent reliability.

    (a.k.a. NihabaAshi) Japanese Candlestick term
  3. thanks mark for the help, just to clarify what I was saying, I've attached an excerpt from the chart of SPY the S&P500 Tracker, . I've highlighted where I saw the downtrend of the white candlesticks, which, i must admit, I'm still slightly confused about!
  4. ================
    Dan ;
    several ways.

    some charts count/color from open price,
    some count/color/prefer close to close price.

    20 day moving average helps keep trends straight;
    among other things And dont have any idea what your/chart timeframe is??????????????????????????

    Weak ,extended SPY uptrend by many measures;
    but 20dma=up
    50dma =up
    200dma =up.
    Wisdom is profitable to direct
  5. And to see another SPY/QQQ/ES downtrend;
    wait a bit.

    Not a prediction:D

    Plans of the diligent tend only to advantage-
  6. What chart interval is it???

    I've seen such occur on daily, weekly or month charts.

    I've even seen it occur on 60min charts.

    However, I don't see it too often occuring on chart intervals less than 60mins unless its one of those illiquid markets.

    My point, it doesn't happen often and because of such...don't worry about it.