Long White Candle

Long White Candle

The Long White 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 White Candle

A Long White Candle is a large body up-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 an upper wick requirement, by default defined as being relatively small. The maximum permitted ratio is calculated by dividing the upper shadow by the body range. This setting is also adjustable via the indicator dialogue box.

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

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

Other bullish candlestick patterns

Other bullish candlestick patterns include the bullish belthold, bullish engulfing, bullish harami, bullish harami cross, bullish piercing, bullish hammer, dragonfly doji, inverted hammer, morning star, morning doji star, tweezers bottom, three white soldiers, rising three methods and the white marubozu.

All of the above patterns may be identified with our candlestick pattern indicator for NinjaTrader 8. Check out the LizardIndicators Premium Section for more information.