Introduction:
The position of the closing price within the candle range provides insights into the market’s sentiment during that period. It reflects whether buyers or sellers dominated the session.
What Can Be Learned:
- How closing near the high of the range indicates strong buying pressure and bullish sentiment.
- How closing near the low of the range shows strong selling pressure and bearish sentiment.
- How a close near the middle of the range signals indecision or balance between buyers and sellers.
Outcome:
You will become skilled at interpreting the sentiment behind each candlestick and use this information to predict potential continuation or reversal of trends.