The "Horse Shoe Candle Pattern" is a candlestick pattern that looks like a horseshoe, as in the image above. Falling long body candles enter the horizontal movement area when they reach a certain level. In the meantime, the length of the candles gets shorter and the price moves horizontally and accumulates. Afterwards, this horizontal sup-dem area is broken up with a large-bodied and voluminous candlestick. After this, there is a strong signal that the uptrend has started. This candle formation is called the horse shoe candle formation.
Similarly, rising long body candles enter the horizontal movement area when they reach a certain level. In the meantime, the length of the candles gets shorter and the price moves horizontally and accumulates. Afterwards, this horizontal sup-dem area is broken down by a large-bodied and voluminous candlestick. After this, there is a strong signal that the downtrend has started.
The horizontal accumulation zones formed in the horse shoe candlestick formation, which we call the horseshoe formation, indicate strong sub-demand areas. Unless these horizontal sup-dem areas in the formation are broken in the opposite direction by strong bars in volume, the dominant direction on the price is the direction of the tips of the horseshoe.
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