Huntraders | Neutral High Wave candle

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Neutral High Wave candle

Using candlestick patterns is the most popular illustration technique today. With their help it is easier to recognise trend reversals and to calculate future price movements. It is essential to understand candlesticks for successful trading.

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Definition

Neutral High Wave has a short body and long shadows. This pattern usually signals a trend reversal.

Trend: Reversal
Expected trend: Neutral
Previous trend: Neutral
Reliability: Moderate
Type: Neutral
Number: 1

Recognition

The body of the candle is small, its colour is irrelevant.
Both shadows are relatively long.

Interpretation

Neutral High Wave reflects uncertainty on the market. It is formed when the trading happens much above/below the opening price during the day, but then the share closes near the opening price. Despite the high volatility during the day, there is no big difference between the opening and closing prices. The Neutral High Wave patterns can signal a possible trend reversal.

Important factors

The signal of a Neutral High Wave is especially important when it happens at the top of the channel. Neutral High Wave requires confirmation, which can be share price movement in the opposite direction of the previous trend.

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