$JCT Five consecutive bearish daily candles, down a cumulative 38.69%.
Let’s use this figure to talk about consecutive bearish candles on the daily chart.
Consecutive bullish or bearish candles on the daily chart are different from a run of same-colored candles on the 4-hour chart: each daily candle represents a full day of trading, so several consecutive candles of the same color are less common on the daily timeframe.
Runs of same-colored candles can also occur during sideways trading: several small-bodied daily candles may all be bullish or bearish, while the cumulative move remains limited. In that case, the consecutive run has limited significance.
The point of understanding an indicator is to be less intimidated by the numbers, not to use it to predict price movements.
Let’s use this figure to talk about consecutive bearish candles on the daily chart.
Consecutive bullish or bearish candles on the daily chart are different from a run of same-colored candles on the 4-hour chart: each daily candle represents a full day of trading, so several consecutive candles of the same color are less common on the daily timeframe.
Runs of same-colored candles can also occur during sideways trading: several small-bodied daily candles may all be bullish or bearish, while the cumulative move remains limited. In that case, the consecutive run has limited significance.
The point of understanding an indicator is to be less intimidated by the numbers, not to use it to predict price movements.