The strong candle is one of the most important signals in price movement analysis using Japanese candlesticks, indicating strong momentum in either the upward or downward direction. Based on the image you attached, the following report can be presented:
A simplified report on "the strong candle"
Definition of a strong candle:
A strong candle is a candle with a relatively large body, indicating that there is a clear push in one direction (up or down), and it often has no long shadows, reflecting the clarity of movement and the market's strong decision-making.
Strong bullish candle (Bullish Candle)
- Its color is green.
- The opening price is lower than the closing price.
- The body of the candle is long, indicating strong buying power.
The shadows (upper and lower) are either short or nonexistent.
Indicates:
- Strong entry by buyers.
- The likelihood of the uptrend continuing.
- Strong support level.
Strong bearish candle (Bearish Candle)
- Its color is red.
- The opening price is higher than the closing price.
- The body of the candle is long, indicating strong selling power.
The shadows (upper and lower) are short or nonexistent.
Indicates:
- Strong entry by sellers.
- The likelihood of the downtrend continuing.
- Breaking an important support or strong resistance turned to a downtrend.
Important notes:
The strong candle gains its true meaning when it appears in support or resistance areas.
Should not be relied upon alone, but must be confirmed with other signals such as:
- Trading volume.
- Technical indicators (RSI, MACD).
- Price patterns.
✍️ Practical example:
If a strong bullish candle appears after a long downward trend, it may indicate the beginning of an upward reversal. Conversely, if a strong bearish candle appears after a long upward trend, it may signal a correction or downward reversal.