Page 140 - THE MARKET WHISPERER

138 PART 5 - Principles O f Technical Analysis
wide range candles. This will be detailed later. We will also discuss trend
reversals. As with the doji, a narrow range candle also hints at an imminent
trend reversal, and provides greater reliability to the reversal pattern.

Wide Range Candle

Here are examples of what candle colors and lengths mean:
• When it is light-colored, the buyers are in clear control
• When it is dark-colored, the sellers are in clear control
• The longer it is, relative to the other candles, the clearer and stronger

the control
Narrow and Wide Range Candle in AAPL with Five-Minute Candles

In the narrow range candle [1], the distance between the opening and
closing price is very small and almost insignificant. The narrow range, as
noted, is a relative term. For AAPL, a range of five cents between opening
and closing prices, as we see in this candle, is a miniscule range, but in
other stocks such as Microsoft (MSFT), it may indicate a relatively wide
range.

When we compare the narrow range candle [1] with the wide range
candle [2], the narrow and wide ranges become clear specifically for AAPL.
In the wide range candle [2], the range between opening and closing prices