What is a momentum candle?

A momentum candle is characterized by a long body and a short wick. The size of the body indicates the strength of the trend, while the wick shows the level of volatility.

What does the'real body' on a candlestick mean?

The wide part of the candlestick is called the "real body" and tells investors whether the closing price was higher or lower than the opening price (black/red if the stock closed lower, white/green if the stock closed higher). Candlestick charts display the high, low, open, and closing prices of a security for a specific period.

What should you do if a momentum candle appears near a resistance level?

For instance, if the momentum candle appears near a resistance level, wait for the price to break above the resistance level and retest it before entering a long position. Use proper risk management: Always use proper risk management techniques such as stop-loss orders and position sizing to manage your trades’ risk.

What is a candlestick pattern & how does it work?

As an oscillator it helps identify trend lines as it measures the rate at which the price moves up or down. Candlestick patterns may show signs of price direction and momentum. If price accelerates, a trader may consider taking a long position, whereas if price rate decelerates this may be a signal to short.