Candle Sticks Formations

[Gundeti]

Gap Down Opening Green Candle
Gap Down Opening Red Candle
Gap up Opening Green Candle
Gap up Opening Red Candle

Reasons for forming above candles in above situations, please clarify

[Rachana_Reddy]

 

Here are the reasons for forming these candles:

1. Gap Down Opening Green Candle:
   The market opens significantly lower than the previous close (gap down), but buying pressure pushes the price up, forming a green candle. It indicates a recovery after a weak open.

2. Gap Down Opening Red Candle:
   The market opens lower than the previous close (gap down), and selling pressure continues, forming a red candle. It signals further weakness and bearish sentiment.

3. Gap Up Opening Green Candle:
   The market opens higher than the previous close (gap up), and buying pressure continues, forming a green candle. It suggests bullish momentum and strong market confidence.

4. Gap Up Opening Red Candle:
   The market opens higher than the previous close (gap up), but selling pressure dominates, forming a red candle. It indicates a potential reversal or profit booking after the gap up.

 

From example