Candlesticks Chart Setups

Candlesticks Consolidation Pattern and XAUUSD Candlesticks Continuation Pattern

Depending on the size and shape of a XAUUSD candlestick it's possible to determine the strength of buyers or sellers. Likewise it's also possible to determine under-lying weakness of the buyers & the sellers.

Long Body XAUUSD Candlesticks

Candlesticks with long bodies show that there were a lot of buyers/sellers, depending on the colour of the candle.

When price makes a huge move from the opening price to the closing price it shows the strength of buyers/sellers.

Long Blue Candles - Strength of Buyers

Long Red Candlesticks - Strength of Sellers

Doji Candles Pattern and Marubozu Candlestick Setup - Gold Consolidation Patterns & Gold Continuation Patterns

Long Body Candles

Short Body Candlesticks

Candlesticks with short bodies show that there were not so many buyers/sellers and the price did not move much from the opening price to the closing price.

These show that the buyers/sellers were not very strong.

Short Body Candles

Marubozu Candlestick

Marubozu are long candlesticks that have no upper or lower shadows, Like illustrated below.

Marubozu XAUUSD Candles

Marubozu are continuing candle patterns which show price is going to continue in same direction as that of the marubozu candlestick. The marubozu can be white/blue or Black/red depending on the direction of the market trend.

Marubozu XAUUSD Candlesticks

White marubozu - the open is also the low and the close also is the high.

Marubozu means there were no retracements during that price period and therefore displays that buyers were in total control of the price.

White Marubozu is a continuation pattern meaning that the next candlestick is likely to continue in same upward trend direction.

Black marubozu - the open is also the high & the close also is low.

Marubozu means there were no retracements and henceforth shows that sellers were in total control of the price.

Black Marubozu is a continuation pattern meaning that the next candlestick is likely to continue in same downwards trend direction.

Get More Topics & Lessons: