High-Wave Pattern: A Sign of Market Volatility
What is the High-Wave Pattern?
The High-Wave is a single-candle pattern that signals strong market indecision and volatility.
Candle Formation – Long Wicks
The candle has a small real body with very long upper and lower shadows, showing sharp price swings.
Market Psychology Behind the Pattern
Buyers and sellers both push prices aggressively, but neither side gains control by the close.
What Does It Indicate?
The pattern shows that buyers fail to push prices higher, allowing the downtrend to continue.
Confirmation & Volume
Traders wait for a strong directional candle next, while rising volume increases the signal strength.
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