Nope -- you weren't missing anything: no real magic to the much-hyped candlesticks. 1) Candles only represent 4 trades in whatever time period is defined for them. In their development (some 4 centuries back), the candle break (an overnight) was meaningful. We violate that (all the time!!!) at our peril. 2) For the market action presented, you can tell a useful time period when market turns are characterized by long wicks in the ending trend's direction. (Thus, the market "tried" to persist with the trend, but could not.) 3) Size of the body represents intra-candle trend all by itself! Bigger candle body = stronger intra-candle trend. Tight little sliver-body = weak-ass intra-candle trend. That is *it*. If you have a *meaningful* time period, wicks == turns; bodies == strength.
Thank you for the explanation. So my original question: Would a long monthly red body or a long upper wick represent a monthly bearish signal if not what does?
In increasing likelihood, I'd go with: A long red candle body, A long top-side wick with a red candle body, A long top-side wick with a green candle body.... An inverted doji (no candle body, open and close are ≈ same). Ewww. Did I just write "doji"?? Eeeks.
%% Here is some practical help, Iron Chief; first time some close candle price dips a day below 200 day moving average. I may or may not ignore that?? But like Alan Farley wrote '' bulls live above the 200 day moving average, bears live below 200 day moving average'' -,daily candlecharts. I may enter on a 30 minute candle chart, but not before i check out 200 day moving average [200=average of trading days in a year/+]. 5 minute candles usually are just noise; even if some use them. Past head of Fidelity equity[general Haggerty] trading, noted institutions may NOT admit to using 200 dma, but they do. I dont use 200 dma in a mindless mechanical sense ,some may do that with profit??
%% Well IBD[investors.com] has buy volume [ weekly+ daily] trending down on SPY; so some are not. NOT a prediction.
%% Sure; Ironchief. Put it simple. The forest is much more important than any tree. A black walnut tree may mean much , but even that is NOt much ,compared to a forest of black walnut trees. Same way with a daily candle. Did you see that monthly S& P derivative candle chart post here?? Its real extended, may get a bit more extended?? SPY buy volume/ 50 dma is trending down[ IBD, investors.com, weekly+ daily]
Haven't defined "top" yet. I don't suppose there'd be any use in asking for a definition of "buy" volume....?
Markets are literally immune to any downside.... The Dow is up 10 days in a row!!!! Now if the Dow were down 10 days in a row and it was off 2000+ points since the election the fed would have cut rates to 0% and pumped the markets with more QE.....zero risk.....alll the time!