Long White Candle

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

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

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

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

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