Get started

Candlestick Analysis

Smart Money- Pair,Price,Session & TimeIf you are a scalper trader or day trader you need to know always: What pair are you trading (ADR, day of week, etc...) What price is right now What session(s) is open/closed now- start of session, middle or end What is time- lunch in Tokyo, London or NY. Smart Money- Where is the money- right now? From example one hour chart of Friday (what do you see?) You need to know support or resistance areas (bearish or bullish order blocks) When price action could breakout or reverse from a manipulation phase- anticipation and catching these moves are early will give your set ups less risk and lower stop loss, especially if you scalp or day trade.
Education
by Anbat
1
Smart Money- (Accumulation-Manipulation-Distribution)This is applicable to any time frames but example attached chart is daily. You could be able to do this on any charts and will keep you trading with big banks or smart money. Please practice this on charts- retail traders should never fight big banks but get on the trade ride with them. On charts you need to be able to see and block in the following areas look like: Accumulation (Buying) looks like in bull and bear conditions Manipulation (Trend) looks like in bull and bear conditions Distribution (Selling) looks like in bull and bear conditions. Trading Forex is half trading edge, plan, risk management and other 1/2 is knowing what smart money is doing and how to trade to exploit it and win.
Education
by Anbat
Let's talk about Candlestick Chart PatternsThe candlestick chart patterns are used by traders to set up their trades, and predicting the future direction of the price movements. There are many candlestick chart patterns. I will be discussing a few of those. ✅ Morning Star is formed after a downtrend indicating a bullish reversal. Generally made of 3 candlesticks, first being a bearish candle, second a Doji, and third being a bullish candle. The first candle shows the continuation of the downtrend, the second being a Doji shows indecision in the market and the third bullish candle shows that bulls are back in action. ✅ Bullish Hammer is a single candlestick pattern, which is formed at the end of the downtrend and shows bullish reversal. The real body of this candle is small with a long lower wick which should be more than twice the real body. This candle is formed when the seller pushes the price downwards but at the same time buyers arrive and push the prices up. ✅ Bullish Engulfing is formed after a downtrend, indicating a bullish reversal. It is formed when a bearish candle is fully engulfed by a bullish candle which shows that the bulls are back in the market. ✅ Three White Soldiers is a multiple candlestick pattern that is formed after a downtrend indicating a bullish reversal. It is formed when three consecutive bullish candles appear one after the other. These three candles show a strong bullish trend. ✅ Hanging Man is generally formed at the end of an uptrend and signals bearish reversal. The real body of this candle is small and is located at the top with a lower shadow which should be more than twice the real body. This candlestick pattern has no or little upper shadow. ✅ Dark Cloud Cover is formed by two candles, the first candle being a bullish candle which indicates the continuation of the uptrend. The second candle is a bearish candle that opens the gap up but closes more than 50% of the real body of the previous candle which shows that the bears are back in the market and a bearish reversal is going to take place. ✅ Bearish Engulfing is formed by two candles, after an uptrend indicating a bearish reversal. It is formed by two candles, the second candlestick engulfing the first candlestick. The first candle being a bullish candle indicates the continuation of the uptrend. The second candlestick chart is a long bearish candle that completely engulfs the first candle and shows that the bears are back in the market. ✅ Evening Star is made of 3 candlesticks, first being a bullish candle, second a Doji, and third being a bearish candle. The first candle shows the continuation of the uptrend, the second candle being a doji indicates indecision in the market, and the third bearish candle shows that the bears are back in the market and reversal is going to take place. Thanks for reading and hope you like it. Please comment and let us know your thoughts on it. Happy Trading
Education
by Tuned_Official
End Of Tokyo 2 End Of London (12 hours)During these 12 hours per day are the highest liquidity and volume during the day, trading Forex. Why? Encompassing Tokyo/London overlap session then only London session then finally London/NY session overlap. If you are day trading or scalping, these 12 hours are best for doing both. Use highest ADR pairs with either Gbp or Eur pairs, you should be able to with right risk management and set ups make piece of pip pie (or make a profit), on one to five trades depending on your strategy and trading edge. On attached 15 minute chart you see up to 70 pips in bullish move during this high liquidity and volume move. Times noted are PST/USA times so please convert to local times. Keeping trading simple with price action always #1, then using maybe daily pivot points, session indicator and alligator- will lead to success. Yellow lines are 4 hour divide lines and peach lines are noting the 9 pm to 9 am (12 hour) period which has high of both liquidity and volume. If you do day trade, think about trading from main daily pivot point or (PP) to either S1 or R1 every day only, this will give you a very high win rate %, please back check. (noted on chart is main (P) pivot point (RED line) to resistance R1 (WHITE line)- would give you a 1:3 or more risk reward set up with 20 pip stop vs 70 pip target... with right risk management on this one trade and with trailing stop.
Education
by Anbat
Candle Basics In forex you have two candles. You have Bullish and Bearish candles. Bullish candles are candles that show price movement upward. Bearish candles are candles that show price movement downward. Every candle has an Open, High, Low, and Close. The meat and bones of the candle is consist of the candles "body" You will also see many candles have wicks at each end. This shows the highest point or lowest point that candle has traveled to. You can pick the colors you want to represent bullish or bearish candles. For me I stick to white for bullish and black for bearish. Candles do differ in size and wicks and can represent certain patterns.
TVC:DXYEducation
by ForensicForex
Trend Key Points Guide And Best PracticesTrend Key Points indicator is a side tool for traders to specify the pivot points and key levels in trends. You can use this indicator in different ways, but I will tell you my own way. I got excellent results by going this way; I hope it will be useful for you as well. Each trend has its high and low key points that are important in the next prices. Sometimes it’s hard to find out the points with a naked eye, this indicator marks these points and draws support and resistance lines from previous critical pivot points . The indicator draws the last two support and resistances of the price by default but you can adjust it in the options. The best practice would be to include the levels drawn in the upper time frames in small timeframes. I’ll explain it with an example. Let’s say I’m trading in the 4h timeframe. Starting from the above timeframe, I specify the key levels to the target timeframe I mean 4h. Assuming that the monthly levels are important in weekly, daily, and 4h timeframes. The weekly levels are important in daily and 4h timeframes and the daily levels are important in 4h timeframe. Notice that I don't just settle for the levels drawn by the indicator, and I draw the flat and oblique trends I see myself. If the key levels do not exist or are far away from the current price in the above timeframes you can rely on an important key point near or a level you think it's important. (w1 and w2 level drawn by myself from a key point) If the level of higher timeframe overlapped the lower one, the level gains more importance. After drawing multi-timeframe levels and trend lines, I’m going back to the 4h timeframe and I am looking forward to important price movements to be made at the drawn levels. Which moves are important to me? - If a new pivot high or a new pivot low appeared in the key levels or important trendline, I expect a return from there. - If a new pivot high or a new pivot low appeared in the key level or important trendline and the volume confirmed the pivot, I expect a return from there. What I mean by volume confirm is that volume is greater than the volume itself. Volume confirmation means that the volume is bigger than the volume MA (20 in my case). - If a candlestick pattern appears at the key level, the pattern will gain more importance. I use Abnormal Pin Bar and Common Candlestick Patterns Indicators for this. Also, the indicator measures the length of each trend and calculates the average length of recent trends (15 by default). I named it movement step length (MSL). I use this info to predict the possible length of the current unfinished trend . Usually, the length of the next trend is greater than the average length of the last trend specified by the indicator. Knowing this prevents me from exiting the unfinished trend early, which is quite possible when I'm nervous and have suspicions about the position. I think the best part is that you can set an alert for the new key point crossing a price level. so you will not have to wait in front of the chart all day. I am open to any improvement. If you have an idea or a suggestion, don't forget to leave a comment. Any feedback will be appreciated 😊
Education
by bhnmzm
2
What are the candlesticks?Candlesticks are a way to express visually the size of the price movement. There are different colors used for the candlesticks, but in pairs of 2: one color for an uptrend (usually marked in green) and one for a downtrend (usually marked in red). Candlesticks are placed in graphics and by their movements create patterns. Starting from those patterns traders decide on a possible future pattern: where will/can the price go from now, based on the previous movements of the price. On any chart, you can use more ways to see the price of an asset: 1. Candles - full candles (usually red or green) 2. Hollow candles - a full candle for a candle that show a downtrend (usually red) and an empty one for an uptrend (usually green and used only on the edges) 3. Bar 4. Line 5. Mountain The main advantage of the candles is that they are more visual. In other words, you can see faster what is going on in your chart. Why usually red or green? The candles are said to show the emotions, so: Red when something is not good Green when something is loved/liked Why do most people use the candles system? The main advantage is that in any time frame you can see these prices: 1. Open price 2. Close price 3. High price 4. Low price What are time frames? There are many time frames: 1, 5, 10, 30 minutes / 1, 4 hours / 1 day / 1 week. For any time frame chosen by the trader the pattern of the candles changes. Depending on what you want to do (invest short, medium or long term) you look at different patterns/timeframes that the candles made. The body of the candle represents the price range between a determined timeframe. If the candle is red - the price is lower than 5 minutes ago (where 5 minutes is the selected timeframe) If the candle is green - the price is higher than 5 minutes ago (where 5 minutes is the selected timeframe) Sometimes the candle looks like a cross (the body for the candle is missing). That means that the opening and close prices are the same. Any candle has 2 wicks or “shadows”: 1. Up - representing the maximum price 2. Down - representing the minimum price There are bigger and smaller candles. Why? The bigger the candle the bigger the price movement. The smaller the candle the smaller the price movement. If the up wicks are smaller it shows that the price closed near the maximum price of that timeframe. The same is valid for a down wick. If the down wicks are bigger it shows that the price closed far from the minimum price of that time frame. The same is valid for an upper wick.
NASDAQ:NVDAEducation
by AngelAlgo
2
EDUCATION - Candlestick Cheat Sheet ⚡⚡One of the most powerful tools in your trading arsenal should be candlestick patterns. Various candlestick patterns can tell us where the market is heading. These patterns can be found on all timeframes, however the Daily candlestick patterns appear to be the most reliable. Once you see these patterns, you can ready yourself for the next move and use other tools to enter the market such as flag patterns, MA strategy - which we've covered before (See linked charts).
Education
by Altsignals
1
EDUCATION - Candlestick Cheat Sheet ⚡⚡One of the most powerful tools in your trading arsenal should be candlestick patterns. Various candlestick patterns can tell us where the market is heading. These patterns can be found on all timeframes, however the Daily candlestick patterns appear to be the most reliable. Once you see these patterns, you can ready yourself for the next move and use other tools to enter the market such as flag patterns, MA strategy - which we've covered before (See linked charts).
Editors' picks
Education
by Altsignals
16
The Hammer (How To Trade)The hammer: Puts in its appearance after prolonged downtrend. On the day of the hammer candle, there is strong selling, often beginning at the 3rd/4 hour candle of session. As the session goes on, however, the market recovers and closed near the unchanged mark, or in some cases even higher. In these cases the market potentially is "hammering" out a bottom. In order for the Hammer signal to be valid, the following conditions must exist: The FX pair must have been in a definite downtrend before this signal occurs. This can be visually seen on the chart. The lower shadow must be at least twice the size of the body. The 4 hour (example candle, see chart) after the Hammer is formed, one should witness continued buying There should be no upper shadow or a very small upper shadow. The color of the body does not matter, but a blue/green body would be more positive than a red body. Make sure pattern on 4 hour time frames happen during Tokyo session, can be on 1 hour time frame if they happen during London or NY session. (fyi)
Education
by Anbat
Dragonfly Doji (How to Use It)A "Dragonfly" doji: Depicts a time period on which prices opened high, sold off, and then returned to the opening price. Dragonflies are fairly infrequent, but when seen on hourly, 4 hour or higher would consider trading them to the bullish side. When they do occur, however, they often resolve bullishly (provided the Forex pair is not already overbought as shown by Bollinger bands and indicators such as stochastic). Things to look for: 1) Dragonfly doji to happen in 1st 8 hours of a new session. 2) First 8 hours of new session is low liquidity and volume (during Tokyo session). 3) For scalping or day trading, I would make sure right pair, right price, right session and right time- for trading any FX pairs. 4) If you catch a pattern within the 1st 8 hours- you may be able to ride the trade thru the end of London session (this is end of all of my trades or earlier). Example chart trade was set up on 4 hour session with a 1:1.5 risk/reward setup with is great if you are day trading a trade for 8-10 hours. Are you patience?
Education
by Anbat
1
Sydney-Tokyo Overlap Session Do you trade AUD pairs? If yes, look for trends to start during the overlapping session with Tokyo: around 6 hr overlap time. What To Look For: 1) Look on hourly charts for trends with AUDxxx or xxxAUD pairs to start during Sydney-Tokyo overlapping session (slow but great risk/reward setups) 2) See AUDJPY 1 hour chart example- excellent Harami two candle pattern to set up a bullish trade with. (placed in purple box on chart) 3) 81.500 price level is a highly psychological price level for big banks and realtor traders ( both, love price numbers ending with 000,250,500 or 750) 4) On chart is three indicators (that I use either alone or together) to get confluence with to enter a new trade: Yes, price action only with naked charts work. A- Ichimoku Cloud- price action is above gold line or conversion line (so bullish sign) B- Pivot Points- price action is above weekly pivot point or red line (so bullish sign) C- Bollinger Band- price action is on or above 20 ema or middle yellow line and BB squeeze is starting (so bullish sign) Note: With Aud pairs- look for trends to start during the Sydney session and both Sydney-Tokyo overlapping session- this AUDJPY bullish trade on hourly chart on Friday could have let you ride it for most of the daily session. Do not be greedy when scalping or day trading- get your pip piece of pie and close trade. With all trading price action and risk management are both #1 (set entry, stop and targets for all trades)-
Education
by Anbat
How to use Candlestick Patterns ..Hello Traders , Have a nice weekend. it's good to learn something even if you knew it before,Seriously some of you know all these patterns but don't know how to use them. First we have to draw our support and resistance area in higher time frames , then we switch to lower time frames to see a candlestick pattern and now you can enter the trade after a little price rest to have a better RR ratio guys. Good Luck on that , As easy as you see
Education
by sajadakrami1378
Harami/Inside Bar (3 of 3)Harami/Inside Bar This pattern is a two-candlestick pattern in which the first candlestick vertically encompasses the one that follows it. This signal is interpreted in two ways: 1. An indication that an increase in volatility is imminent. This affords traders the opportunity to create trades that speculate not so much on direction, but rather on an increase in volatility on a breakout in any specific direction. 2. In the context of a trend, a harami/inside bar can be indicative of exhaustion and the onset of a reversal. In this manner, it is similar to long wick patterns and evening star/morning star patterns examined earlier in this guide. Note: All three patterns in this series (Pin-bar, Harami and Engulfing) should be traded with a confluence of things like: 1) Support and Resistance 2) Trend lines 3) Fib Retracement levels (50% to 61.8%) golden zone 4) Remember: Pair you trade, Price right now, Session(s) open & Time it is. All of these are highly important in Forex trading. 5) Patterns at pivot points (daily, weekly or monthly)
Education
by Anbat
Engulfing Candlesticks (2 of 3)Engulfing Candlesticks The other important candlestick pattern I think price action traders need to have knowledge on is the engulfing candlestick. Like pin bar the engulfing candle is a reversal pattern, which means that a reversal is supposed to take place immediately after you see one form in the market. Unlike the pin bar the engulfing candlestick is a two bar reversal pattern, a pattern which requires there to be two candlesticks present in order for it's formation to be complete. The formation of a bearish engulf is always a signal that a reversal to the downside is about to take place. The pattern itself consists of two candlesticks. The bearish engulfing candlestick itself, which I've marked with an arrow, and the bullish candlestick that formed an hour before. The bullish candle is first candle required in the bearish engulf setup. This is the candlestick which the market will always engulf with a bearish candle immediately after it's formation. In order for a bearish engulfing candle to form, a bullish candle must have formed immediately prior. You can't have a bearish candlestick engulfing another bearish candle, it has to be a bullish candle in order for it to be a bearish engulf. Bullish engulfing candlesticks are of course the opposite to bearish engulfing candles, which means their appearance is a sign the market is going to reverse to the upside. Like the bearish engulfing candle they are also a two bar pattern, but instead of the first candle in the pattern being a bullish candlestick, like we see with the bearish engulfing formation, the first candle in a bullish engulfing setup will always engulf a bearish candle. A bullish engulfing candle cannot engulf another bullish candle, it can only engulf bearish candles. Engulfing candlesticks are best used as signals to enter trades at pre-existing points where you expect the market to reverse, such as support and resistance levels or supply and demand zones. They can be traded on their own without any other confirming factors being present, but in my opinion they don't tend to work out as well as pin bars do.
Education
by Anbat
2
Pin Bar/Hammer Candlestick (Part 1 of 3)The pin bar is a single candle pattern which can be found forming across all currencies and all time-frames in the market. It falls into the category of price action reversal patterns due the fact it's appearance is supposed to be a signal a reversal is going to occur. Although it must be said that very few pin bars actually cause large reversals to take place in the market, (I'll explain why in a minute). Like most price action patterns the pin bar comes in two varieties: The bullish pin bar, which signals a reversal to the upside may be about to take place, and the bearish pin bar, which is a sign a reversal to the downside is probably going to occur. You can see that the vast majority of these bullish pins did cause the market to reverse once they had formed, but they didn't all cause it to reverse for the same duration of time. Some caused large upswings to take place whilst others only created small retracements. Again, you can see that the pin bars which formed on here also caused reversals of varying sizes to take place. The reason why pin bars cause different sized reversals to occur, is because of the action that caused the pin bar to form in the first place. Pin bars and all the other candlesticks you see forming on your charts, form as a result of traders making decisions in regards to the market price. Pin bars happen to form exclusively from the bank traders either placing trades because they want to make the market reverse, or from taking profits off trades which they've already got placed. The reversal created by the pin bar which has formed as a result of the bank traders taking profits off their trades, is naturally much smaller than the reversal caused by the pin which has formed from the bank traders placing trades to make the market reverse. It's obvious why this is, I mean if you took some profits off a trade you would want the market to continue moving in the direction to which your trade had been placed so you could make more money from the trade. The bank traders want the same to happen when they cause a pin bar to form from taking profits off their own trades, which is why the reversal caused by some pin bars forming are much smaller than the reversals caused by other pins forming. Bullish and bearish pin bars are really good reversal patterns to watch out for if you're a price action trader, but they must be traded in the right way and you must understand why they form in the market. Most of the books and guides out there on pin bars do not teach traders what causes them to form, when it's knowing what causes them to form that will allow you to determine which pins have a high probability of working out successfully.
Education
by Anbat
Head & Should Pattern (How To Trade)The Head And Shoulders Pattern The first price action reversal pattern we're going to look at is the head and shoulders pattern. Without doubt one of the most popular and well known price action patterns in the market, the head and shoulders formation is one which all price action traders need to memorize and understand if they want to become good at spotting reversals using price action. As you've probably already guessed, the head and shoulders pattern is a reversal pattern which has a swing structure very similar to that of person's head and shoulders. You can see from the image the structure of the pattern does bear a striking resemblance to somebody standing up with their head straight and their shoulders level with one another. Most head and shoulders patterns are supposed to look like the one you can see in the image above, but a large percentage of them will actually have features which are a little different from one another. For example, you might see a pattern form with one of the shoulders being a little bit higher than the other, or the distance of two shoulders from the head will be smaller or bigger than what you can see in the pattern above. These small differences do not alter the pattern in any meaningful way. So long as the head is always found in the middle and the two shoulders are found to be either side, it's a head and shoulder pattern. If the high of the right shoulder is found to be below the swing low of the move up which created the head, then it's not a head and shoulders pattern and should not be treated as such. Rules: 1) measure from top of head to neckline for excepted target goal, once price action breaks neckline. 2) These patterns are infrequent, but powerful on 1 hour or higher time frames.
Education
by Anbat
1
Alert-Confirm-Enter StrategyThe A.C.E. strategy is one of the easier ones to do if you scalp or day trade in Forex. A- Alert Candle 1st one C- Confirm Candle 2nd one E- Enter Candle 3rd on This can be done on bearish an bullish set ups: 1) ALERT- Look for the last trend ending candlestick. 1st candlestick (which is part of three bar pattern) 2) CONFIRM- Look for a longest trend ending candlestick (doji, pin bar, harami etc... (2nd candlestick)- top of this in bullish reversal is enter price and bottom of this in bearish reversal is enter price. 3) ENTER- Look for 3rd candlestick to go into new direction breaking top (bullish) or bottom (bearish) of 2nd candlestick to Enter trade. 4) Put stop loss above top of bearish trade or below bullish trade. For trade on 1 hour chart, I like 20 pips, with a 1:2 or higher risk reward setup. Please look at example chart and look for many more on other one hour charts for pairs you trade. Keep trading as simple as possible. GbpAud.
Education
by Anbat
MACD Divergence by MADO and how i use it to predict breakoutsFirst I want to give mad props to MADO for his/her Divergence MACD Indicator. I found this last night and this is what I have found while using it. Although it doesn't preplot every divergence I would like to see and there are a lot of other things I wish it did...maybe some programmer or Mado themselves would like to help put what I see all together into one indicator. That Said while using the indicator I found that not only can you predict when it will break out but also what it will do when it does, and how far it could go. I have only tested this on a few stocks as I just found this out and wanted to post it while I was discovering it. So its not polished and its not withheld in any way its exactly as I am discovering it. I will make a video again as the first 2 errored out due to my poor internet. lol @MaDo if you are viewing this I want to give you mad props on this indicator. By far the best one I found and yes im using it not as intendid but thats how i use all indicators. If you are interested in helping me make a version of this with my twist to it I would gladly help you see it the way I see it so that you could. Feel free to reach out anytime.. That goes for any programmers that come across this. I see a lot of things most people dont due to my acquired savant syndrome and would like to share that with the world. by iCantw84it 07.09.2021
NYSE:CPNGEducation
by iCantw84it