What is a supportive candle?

Hello guys,

What is a supportive candle? I keep hearing this term in FX forecasts, when the guy says: “We’re gonna buy at supportive candle.” What is that? Is it like a pinbar or sth like that, telling you that bulls are almost all gone and the bears are in the game, making this pair about to go up?

Pics will be appreciated.

Thanks!

Lulu2199

I too had this same question today (looking at USD/CAD by chance? :53:), and not sure if you’ve seen this but great article here from the babypips school about this (Can’t post links but you can copy and paste it: babypips.com/school/support-and-resistance.html

Basically from what I understand, supportive candles are when you see 2 candles approach a price but don’t seem to get underneath it. Better illustrated by this image:


Here is another good article from Investopedia: investopedia.com/articles/technical/061801.asp#axzz2NrG6yE00

Disclaimer: Total noob here, just wanted to share what I learned when searching for the same exact thing today. Anyone else with better insight care to enlighten us?


So, a supportive candle can’t be told simply by looking at the appearance of one candle. We must wait till it’s finished and see a rebound to determine weather it’s a supportive candle or not right?

Well, I’m probably not the right person to be answering but I’m looking now at USD/CAD and I can see 2 candles today at around the 1.022 range then everything goes up from there. And that is what support seemed to be at last week too. So I guess if you see candles that are getting stuck in a range and not going below, a pattern if you will where they aren’t going below a certain level, that’s the indicator. But yes I’d say you need more than one candle to determine support level

There’s gotta be someone else out there on babypips forum who can confirm we are on the right track or not?!

Well this is a “supported” candle…
hope it’s what you were looking for…:57:


Lol Mate. This is the one :cool: