Long Black Candle

A Long Black Candle is usually considered a continuation pattern. However, its correct evaluation should depend on the specific market situation.

When a Long Black Candle occurs in a downtrend, it suggests the continuation of the trend, but it can also be part of a reversal pattern.

Its appearance in an uptrend can be a precursor to the change of trend, especially if its close is lower than the closing prices of the previous candles. Apart from a single appearance after the price increase, the Long Black Candle can also be part of other reversal patterns.

Similar to the Long White Candle, this candle can form an important resistance area (especially when the trading volume also increases on that candle). The resistance level appears between the average and maximum price of that candle. Other interpretations treat it as a resistance zone for the entire Long Black Candle.

When a Long Black Candle breaks a previous support region, it should be considered as a significant fact that signals the strength of the downtrend and its further continuation.