Long Red Body -Bearish Reversals

Candlestick Movement

Long Red body

A candlestick of a long Red body that forms at the end of an uptrend, or at a resistance area. This has bearish reversal implications.

Meaning

The prolonged rally brought prices higher to a point that caught the traders’ attention, triggering profit-taking and sell orders. As a result, the closing price is much lower than the open price signaling a possible end of the uptrend and new downward move.

Supply/Demand

Supply is greater than demand.

Direction

Bearish.

Sentiment

Negative

Trigger

Consider selling if next candle falls below the low of the long black body.

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