Reply To: Candle Types
Hi Keith,
The thing to remember about candlesticks is that although they give a visually striking image, they are only illustrating the movements of the market – the changing power dynamic between the buyers and sellers – over a specified period of time.
With the spike candles you have noticed, it has been a case of the downside pressure quickly being absorbed and overpowered by the buyers all inside that 15 minute period. It could be down to the reaction to news items – have you checked the economic calendar to see if any releases correspond to the times this has happened? Is it one particular market you have been working in when you have experienced this?