Long Black Candle

Long Black Candle for NT8

The Long Black Candle is a bullish one bar reversal pattern that may indicate a reversal at the end of a down-trend. Check out the video below to learn more:

What is a Long Black Candle

A Long Black Candle is a large body down-close. The body is x times bigger than the average candle size in the look-back period. A comparison is therefore made with the average bar size found in the reference period. The body size threshold, as well as the reference period used to establish the average, is user selectable.

You may furthermore modify the lower wick requirement, by default defined as being relatively small. The maximum permitted ratio is calculated by dividing the lower shadow by the body range. This setting is also adjustable via the indicator dialogue box.

Finally, when identified as a reversal, a Long Black Candle will plot during a minor bullish swing trend. Various trend bias specifications are available, for example deviation type, multiplier setting and swing strength. The bullish equivalent to this pattern is the Long White Candle.

The patterns should be combined with other technical tools for confirmation. Our Indicator Library features categories for advanced momentum oscillators, volume analysis and / or channel indicators. A post on how to combine candlestick patterns with continuation and reversal setups was discussed here.

Other bearish candlestick patterns

Other bearish candlestick patterns include the bearish belthold, bearish engulfing, bearish harami, bearish harami cross, black marubozu, dark cloud cover, shooting star, gravestone doji, hanging man, evening star, evening doji star, tweezers top, three black crows and the falling three methods.

TheLong Black Candle and the above patterns may be identified with our candlestick pattern indicator for NinjaTrader 8. Check out the LizardIndicators Premium Section for more information.