What Is a Short Line Candle?
Short line candles—also known as short candles—are candles on a candlestick chart that have a short real body. This one-bar pattern occurs when there is only a small difference between the opening price and the closing price over a given period. The length of the upper and lower shadows—representing the high and low for the period—do not make a difference in defining a short line candle.
In other words, a short line candle may have a wide or narrow high and low range for the period but will always have a narrow open and close range.
In technical analysis, a short line candle refers to a candlestick pattern that is characterized by a small body and little to no shadows or wicks. This pattern can have different meanings depending on its context within the overall price action.
Here is the meaning of a short line candle in technical analysis:
Bullish short line: A bullish short line is a candlestick pattern that is characterized by a small body with little to no shadows or wicks. This pattern typically indicates a period of consolidation or indecision in the market, but is considered bullish because it follows a period of selling pressure. Traders interpret this pattern as a potential reversal signal, indicating that buyers are beginning to enter the market.
Bearish short line: A bearish short line is a candlestick pattern that is characterized by a small body with little to no shadows or wicks. This pattern typically indicates a period of consolidation or indecision in the market, but is considered bearish because it follows a period of buying pressure. Traders interpret this pattern as a potential reversal signal, indicating that sellers are beginning to enter the market.
Neutral short line: A neutral short line is a candlestick pattern that is characterized by a small body with little to no shadows or wicks. This pattern typically indicates a period of consolidation or indecision in the market, with neither buyers nor sellers in control. Traders interpret this pattern as a sign to wait for further confirmation before entering a trade.
In conclusion, a short line candle is a candlestick pattern in technical analysis that is characterized by a small body and little to no shadows or wicks. The meaning of this pattern depends on its context within the overall price action, and can signal a potential reversal or consolidation in the market.