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Candlestick Analysis

Candlestick Patterns (Trader's Should Know) Three Black CrowsThe three black crows candle formation does not happen very frequently in Forex trading, but when it does occur swing traders should be very alert to the crow’s caw. The candlestick’s metaphor is three crows sitting in a tall tree. On the day the first black crow makes its appearance, formation is most predictive if the first “crow” or dark candlestick closes below the previous candle’s real body. Two more long-bodied consecutive down days then ensue. On each of these days, it appears as if the stock wants to regain its former strength, as the Forex pair opens higher than the close on the previous day. By the end of each session, however, the sellers regain control and the Forex pair drops to a new closing low. This happens when a bullish trend has been in effect and liquidity or bearish trading is in control for three days, but afterwards the major bullish trends restarts up in the major trend direction.
Education
by Anbat
1
Candlestick Patterns (Every Trader Should Know) Hangman CandleThe hangman candle, so named because it looks like a person who has been executed with legs swinging beneath, always occurs after an extended uptrend. The hangman occurs because traders, seeing a sell-off in the shares, rush in to grab the stock a bargain price. In order for the Hanging Man signal to be valid, the following conditions must exist: • The Forex pair must have been in a definite uptrend 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 day after the Hanging Man is formed, one should witness continued selling. • There should be no upper shadow or a very small upper shadow. The color of the body does not matter, but a red body would be more positive than a blue or green body.
Education
by Anbat
Candlestick Patterns (Every Trader Should Know) Dragonfly DojiA “Dragonfly” doji depicts a day on which prices opened high, sold off, and then returned to the opening price. Dragonflies are fairly infrequent. When they do occur, however, they often resolve bullishly (provided the Forex pair is not already overbought as show by Bollinger bands and indicators such as stochastic). See daily attached chart of dragon fly candle, which was oversold and located at the lower band of Bollinger bands and at round numbers from 1.53000 to 1.53700. This is a great candlestick to plan for price action to continue to be bullish from, especially if this happened early in week. Noted dragonfly doji happened on a Thursday and lasted for around five days.
Education
by Anbat
Candlestick Patterns (Every Trader Should Know) Long Legged DojiA “long-legged” doji is a far more dramatic candle. It says that prices moved far higher on the day, but then profit taking kicked in. Typically, a very large upper shadow is left. A close below the midpoint of the candle shows a lot of weakness. Here’s an example of a long-legged doji on attached chart (inside of oval circle). Daily candlesticks and patterns are more important then lower time frame ones, related to having one whole days of price action inside of them. Monday and Tuesday daily candlesticks mostly will set high or low of the week, which rest of week trend will break out or come out of. The noted long legged doji occurred on a Tuesday, then rest of week was sell or bearish.
Education
by Anbat
Candlestick Patterns (You Should Know) Part #1 DojiA doji represents an equilibrium between supply and demand, a tug of war that neither the bulls nor bears are winning. In the case of an uptrend, the bulls have by definition won previous battles because prices have moved higher. Now, the outcome of the latest skirmish is in doubt. After a long downtrend, the opposite is true. The bears have been victorious in previous battles, forcing prices down. Now the bulls have found courage to buy, and the tide may be ready to turn. On noted hourly chart two doji's happened (in a row/strong) end of Tokyo and beginning of London session, PA happened at round number of 1.93000 Ask yourself four questions before you enter a new trade: 1) What Pair are you trading? GBP/USD, GBP/JPY, EUR/JPY etc... do they have a low or high ADR (average daily range)? use for targets and stop losses 2) Where is price action? by round numbers, by major support or resistance? at a fib ret level or golden zone (38.2% to 61.2%) 3) What Session are we in? ( Sydney, Tokyo, London or New York... or overlapping time). 4) What Time is it during current session? beginning, middle or close Note: Pair, Price, Session & Time for each new trade.
Education
by Anbat
1
Golden Candle Stick Pattern's - You Have To CheckBULLISH PATTERN'S ----------- Hammer is identical in shape to hanging man but the difference is that while hammer occurs is a down trend , the hanging man pattern occurs in uptrend Inverted Hammer : An Inverte Hammer Is usually observed at the end of downtrend ,this pattern is similar to Shooting Star and differs only in the position where is occurs DragonFly Doji : This is partly a bullish pattern , Open . Close and High Prices of the candle are same . Dragonfly Doji implies That , buyers and sellers were in a tough fight and by the end of the session : buyers were able to push the prices to its open price Bullish Engulfing : A Bullish Engulfing pattern is generally observed at the end of a downtrend , A large green candle engulfs a small red candle showing the strength of bulls , prior bearish trend coverts to bullish trend Piercing Pattern : A Piercing Pattern is similar to bullish engulfing pattern in a way that both of them appear near he end of a downtrend , but the green candle doesn't engulf the red candle completely instead closes half way through it Bullish Harami : in a bullish harami . 1st candle is a bear candle and the 2nd candle is a bull candle . bull candle has a small body compared to bear candle Morning Star : This Pattern Is observed at the end of a downtrend , first candle is a bear candle . second candle is a doji with gapdown opening and he third candle is a strong bull candle with a gap up opening length of bull candle's body is generally largest than the bear candle ----------------- BEARISH PATTERN'S Hanging Man : A hanging Man is a Candlestick pattern with a long wick below the candle's body and a little to no wick above the candle's body the length of the bloody is usually 1 / 3r of the length of the lower wick Shooting Star : Shooting Star is simply an inversion of the hanging man pattern it has a mall body and a long wick above it . with little to n wick below shooting start is usually observed in an uptrend and signifies trend exhaustion Gravestone Doji : This is Partly a bearish pattern open . close and low prices of the candle are same gravestone doji implies that , buyers and sellers were in a tough fight and by the end of the session sellers were able to push the prices to its open price Dark Cloud Cover : A Dark Cloud Cover Pattern is Similar to Bearish Engulfing pattern in a way the both of them appear near the end of an uptrend but the red candle docent engulf the green candle completely instead closes half way through it Bearish Engulfing : A Bearish Engulfing pattern is generally observed at the end of and uptrend , A large Red Candle Engulfs a small green candle showing the strength of bears , prior bullish trend converts to bearish trend Bearish Harami : in a bearish harami . 1st candle is a bull candle and the 2nd candleis a bear candle bear candle has a small body compared to bull candle Evening Star : This Pattern Is Observed at the end of an uptrend first candle is a bull candle , second canle is a Doji with Gap up opening and the third candle is a strong bear candle wit a gap down opening . length of bear candle's body is generally larger than the bull candle
Education
by GoldenEngine
24
Daily Candles 4 Day Trading StrategyNoted on GBPAUD daily chart are four daily candlestick reversal trade set ups to day trade (one day or two days maximum). Rule: Only use around 100 or more ADR pairs (average daily range) pairs- GBP and EUR pairs are great. Also, use half of daily ADR for all stop losses, now GbpAud ADR is 140 pips, so 1/2 of that is 70 pips at around $8.00/per pip move. Yes, adjust your risk management and lot sizes, if you need too. All you need on chart is the BB or Bollinger Bands (with default settings), as noted on chart are four GBPAUD trades, three sell trades and one buy trade. The profit pips noted on chart are approximate per trade with a stop loss of 70 pips ($560)- on one standard size lot trade. Maybe, that might be too much risk, so use .50 lots or 1/2 macro lot or even .20 lots- whatever you plan, account and risk management can do. Note: This four April trades of profit are around 500 pips x $8.00 = $4,000 dollars, on using one standard size lot setup, adjust risk according to your plan. Rules: 1) Use daily candlestick charts for day trading this two candlestick daily reversal strategy 2) Look for either continuations of trends with weak pullbacks or reversals (at outer bands) 3) Enter any new trades at open (different color candle) of last daily trending candlestick for reversals or weak pullbacks in a trend continuation. 4) Any pairs could work, but high or around 100 ADR pairs work best (Gbp or Eur work best) 5) These trades most of time last one day or maximum two days. Noted On chart mostly trades set ups of 70 pip stop vs. 100 pips, 120 pips, 200 pips and 50 pips, so adjust stop loss depending on four things: Pair traded, Price traded, Session traded and Time Traded. Most set ups were 1: 1.5 to 1:3 almost Risk Reward. Any questions please DM me here at TV/follow. ty
Education
by Anbat
All candlestick patterns for Trading : Bullish reversal patternsHello everyone 😃 In this article we present Most useful bullish reversal patterns of candlesticks and How to trade with them. ( Sorry for my irregular chart 🤦‍♂️ I'm not good in drawing 😁 ) 📊 What is Candlestick charts ? Candlestick charts are a type of financial chart for tracking the movement of securities. They have their origins in the centuries-old Japanese rice trade and have made their way into modern day price charting. Some investors find them more visually appealing than the standard bar charts and the price actions easier to interpret. Candlesticks are so named because the rectangular shape and lines on either end resemble a candle with wicks. Each candlestick usually represents one day’s worth of price data about a stock. Over time, the candlesticks group into recognizable patterns that investors can use to make buying and selling decisions. 📍 Bullish reversal Candlestick Patterns : Over time, groups of daily candlesticks fall into recognizable patterns with descriptive names like three white soldiers, dark cloud cover, hammer, morning star, and abandoned baby, to name just a few. Patterns form over a period of one to four weeks and are a source of valuable insight into a stock’s future price action. Before we delve into individual bullish candlestick patterns, note the following two principles: 1- Bullish reversal patterns should form within a downtrend. Otherwise, it’s not a bullish pattern, but a continuation pattern. 2- Most bullish reversal patterns require bullish confirmation. In other words, they must be followed by an upside price move which can come as a long hollow candlestick or a gap up and be accompanied by high trading volume. This confirmation should be observed within three days of the pattern. 📌 The bullish reversal patterns can further be confirmed through other means of traditional technical analysis—like trend lines, momentum, oscillators, or volume indicators—to reaffirm buying pressure. There are a great many candlestick patterns that indicate an opportunity to buy. We will focus on five bullish candlestick patterns that give the strongest reversal signal. 🈺 Now let's talk about patterns that we provided on chart.. ! - Hammer : Hammers have a small real body and a long lower shadow. 📚 The hammer candlestick shows sellers came into the market during the period but by the close the selling had been absorbed and buyers had pushed the price back to near the open. - Inverted hammer : The Inverted Hammer formation is created when the open, low, and close are roughly the same price. Also, there is a long upper shadow which should be at least twice the length of the real body. 📚 The Inverted Hammer candlestick formation occurs mainly at the bottom of downtrends and can act as a warning of a potential bullish reversal pattern. - Dragonfly DOJI : The open, high, and close prices match each other, and the low of the period is significantly lower than the former three. This creates a "T" shape. 📚 A dragonfly DOJI after a price decline warns the price may rise. If the next candle rises that provides confirmation. - Bullish kicker : This pattern is characterized by a sharp reversal in price over the span of two candlesticks. 📚 Traders use kicker patterns to determine which group of market participants is in control of the direction. - Bullish spinning top : A spinning top is a candlestick pattern that has a short real body that's vertically centered between long upper and lower shadows. 📚 Spinning tops are a sign of indecision in the asset; the long upper and lower shadows indicate there wasn't a meaningful change in price between the open and close. - Bullish engulfing : This pattern appears in a downtrend and is a combination of one dark candle followed by a larger hollow candle. 📚 Bullish engulfing patterns are more likely to signal reversals when they are preceded by four or more black candlesticks. - Bullish harami : It is generally indicated by a small increase in price (signified by a white candle) that can be contained within the given equity's downward price movement (signified by black candles) from the past couple of days. 📚 A bullish harami is a candlestick chart indicator for reversal in a bear price movement. - Tweezers bottom : A tweezers bottom occurs when two candles, back to back, occur with very similar lows. 📚 Tweezers are more meaningful as part of other trends, especially pullbacks. - Morning star : A morning star is a visual pattern made up of a tall black candlestick, a smaller black or white candlestick with a short body and long wicks, and a third tall white candlestick. 📚 The middle candle of the morning star captures a moment of market indecision where the bears begin to give way to bulls. The third candle confirms the reversal and can mark a new uptrend. - Morning DOJI star : A Morning Doji Star consists of a long bearish candle, followed by a Doji that has gapped below it, then a third bearish candle that closes well within the body of the first candle and in doing so confirming the reversal. It is considered a strong bullish price reversal candlestick pattern. 📚 It is considered as a signal of a potential upcoming reversal of the current trend of the market. - Bullish abandoned baby : It forms in a downtrend and is composed of three price bars. The first is a large down candle, followed by a doji candle that gaps below the first candle. The next candle opens higher than the doji and moves aggressively to the upside. 📚 This pattern signals the potential end of a downtrend and the start of a price move higher. - Three white soldiers : The pattern consists of three consecutive long-bodied candlesticks that open within the previous candle's real body and a close that exceeds the previous candle's high. 📚 Three white soldiers are considered a reliable reversal pattern when confirmed by other technical indicators like the relative strength index (RSI). 📌 These candlesticks should not have very long shadows and ideally open within the real body of the preceding candle in the pattern. - Three line strike : The bullish formation is composed of a big green candle, 3 up candles, and one down candle erasing the advance made by the prior 3 candles. 📚 After prices trend in a particular direction, they will pause before refreshing higher. This is seen as a continuation pattern and is different from a pattern that would signal a reversal. - Three inside up : The three inside up pattern is a bullish reversal pattern composed of a large down candle, a smaller up candle contained within the prior candle, and then another up candle that closes above the close of the second candle. 📚 Consider using these patterns within the context of an overall trend. For example, use the three inside up during a pullback in an overall uptrend. 📌 These patterns are short-term in nature, and may not always result in a significant or even minor trend change. - Three outside up : The three outside up and three outside down patterns are characterized by one candlestick immediately followed by two candlesticks of opposite shading. 📚 Three outside up/down are patterns of three candlesticks that often signal a reversal in trend. 📌 Each tries to leverage market psychology in order to read near-term changes in sentiment. - Three stars in the south : It is formed by three black or red (down) candles of decreasing size following a price decline. 📚 The pattern indicates a bullish reversal, although the price should ultimately move in the expected direction before taking a trade. This is called confirmation. 📌 The three stars in the south candlestick pattern is a very rare pattern that doesn't typically precede large price moves. - Bullish stick sandwich pattern : One candlestick pattern is the stick sandwich because it resembles a sandwich when plotted on a price chart - they will have the middle candlestick oppositely colored vs. the candlesticks on either side of it, both of which will have a larger trading range than the middle candlestick. 📚 Candlestick charts are used by traders to determine possible price movement based on past patterns; These patterns may indicate either bullish or bearish trends, and so should be used in conjunction with other methods or signals. - Matching low : The matching low pattern is created by two down candlesticks with similar or matching closing prices. 📚 The pattern occurs following a price decline and signals a potential bottom or that price has reached a support level. - Break breakaway : The first candle in the formation is long and black. The second candle is also long gaps away from the first in the direction of the trend. The third candle can be either color, but does not show a change in trend direction. The fourth candle continues in the direction of the proceeding trend. The fifth candlestick has a long white body, opens against the trend and continues in that direction to close the gap. 📚 The Bullish Breakaway pattern is a five candle reversal formation that occurs during a downtrend. - Bullish Tri-Star : Tri-Star patterns form when three consecutive DOJI candlesticks appear at the end of a prolonged trend. 📚 A Tri-Star is a three line candlestick pattern that can signal a possible reversal in the current trend, be it bullish or bearish. 📍 A Tri-Star pattern near a significant support or resistance level increases the probability of a successful trade. - MARUBOZU : A large real body, There will be no shadow at either sides of the candle, The color of the candle will be of a significant meaning. 📚 MARUBOZU means “bald head” or “shaved head” in Japanese, and this is shown in the absence of wicks or shadow on the candlestick, meaning that the opening or closing price will be the same as the maximum prices of the candle. The absence of shadow indicates that the trading session opened at a high price and close at a low price at the end of the day (or the opposite). 🔴 NOTES : - There are many bullish reversal patterns that we only present most useful patterns for trading ! - Most of them have 2 definition and direction ( Bearish and Bullish ) and we only present bullish reversal patterns ! - For better result in your trading, You need to confirm patterns through trend lines, momentum, oscillators, or volume indicators. ⏰ Best timeframes to work with candlestick patterns : Traders usually use Monthly, Weekly, Daily, 4-Hour, Hourly, 15-Minute and even 1-Minute timeframes. Ideally, traders pick the main timeframe they are interested in and then choose a longer and a shorter timeframe to complement the main one. The longer timeframes typically contain fewer and more reliable signals. The shorter timeframes usually contain more signals with less accuracy. There are several types of traders, and they have different trading styles. 📍 We will provide more contents for candlestick patterns in next weeks ! So stay tuned and support us with your LIKES, COMMENTS and FOLLOWINGS... Have a great moments. @Helical_Trades
NSENG:ACADEMYEducation
by Helical_Trades
122
Candlestick Formations WicksMany materials have been written on various candlestick formations. In my experience, the new trader will put far too much weight in these formations, Treating these formations as if they are some secret sauce to conquering the markets. In my experience, candlestick formations and patterns are important, but what is not as critical is memorizing every catchy name for the formations and reciting them off the top of your head. Once a trader understands the principles and market forces these formations convey, the trader will be much more informed than just memorizing their names. The essential concepts of analyzing candlestick formations relate to the candlestick bodies’ size and wicks on the analyzed candles. The volume present for the relevant candlesticks should also be a significant consideration when looking at candlestick formations to gauge market participation. Core Concepts on formations: Wicks: A long wick coming out the bottom of a candle on a downtrend may reflect that a local floor has been reached for the asset. The long wick reflects this because it shows that the market has readily bought up the asset’s price at lower prices. For example, here is what is known as a "bullish hammer,” or Dragonfly Doji, you will notice a massive wick coming out the candle body’s bottom (reflecting the intense buy pressure at those lower levels). Subsequently, no candle body closed below this Bullish Hammer/Dragonfly Doji body. Similarly, a long wick coming out the top of a candle on an uptrend may reflect that a local top has been reached for the asset. The long wick reflects this because it shows that the market has readily sold down the asset’s price at higher prices. For example, here is a local top reached in September 2020 for the S&P 500 (the second arrow pointing out a long wick to the bottom and resumption of trend):
NASDAQ:NFLXEducation
by liquidityzone
1
The Railway Tracks Pattern Trading Strategy (How To)The railway tracks pattern Forex trading strategy is another price action trading strategy that is based on analyzing the lengths of two candlesticks of similar lengths and one of candlesticks must be bullish and the other one is bearish. When you see them together they look like railways tracks and thus name… There are two types of railway track pattern: bullish and bearish. Consider the railway tracks pattern as trend reversal patterns. Bearish Railway Track Pattern (noted on 1 hour chart- higher time frames are better for this noted reversal pattern) A bearish railway track pattern has the first candlestick bullish and the second candlestick pattern bearish. that fact that there’s a sudden change from bullish to bearish candlestick should be a good indication that there might be a bearish trend forming if you see it in levels of resistance, pivot point, downward trend lines, fibonacci levels etc. Currency Pairs To Trade? You can trade any currency pairs with this trading system. Time frames Required To Trade? I suggest you use the daily, 4 hr and 1 hr time frames only. Any Forex Indicators Required? You don’t need any Forex indicators for this. Rules: Selling Trading Rules Of The Railway Tracks Pattern Forex Trading Strategy (Bearish) place a sell stop pending order 1-2 pips below the low of the bearish railway tracks pattern (2nd candle) stop loss can be placed 12-20 pips above close of bearish 2nd candle, target should be 1:2 to 1:3 or risk reward of 2 xs or 3 xs on a scalp or day trade. risk reward of 1:3 can be used to calculate your take profit target level or if you want to aim for a little bit more, use previous swing lows as your take profit target levels. Or you can also use trailing stop to ride out the trend. *Good luck and risk management is always #1.
Education
by Anbat
HOW TO TRADE B&R CONSISTENTLYHello everyone, today i got my first tutorial on tradingview, I hope is gonna be helpfoul. You have to follow those rules and with practice you can be a consistent trader. RULES 1- Identify the trend and trade in the direction of the trend: can be so simple to identify a trend using structure, you don't need any EMA or any indicators, as the theory of Dow says we can identify a trend with those simple rules: - if the market is making higer high and higer low, it means that we are in an uptrend - if the market is making lower high and lower low, it means that we are in a downtrend - if the markets has equals low and equal high it's in a range IMPORTANT RULE: you don't trade in ranging markets. 2- once you identify the trend you have to identify KEY LEVELS, i divide them in 3 type: - higher and lower - intermediate levels - target levels IMPORTANT RULE: beetween your entry and the intermediate level there should be at least the same space between the entry and the stop loss, so you can put your stop loss to BE once is hitted 3- Trade just the retest, not the impulse Since the market can exaust in any moment, Trade only once the market alreay exaust, and you have a confermation (doji candle, long wicks candle, breaking of the high of the candle....) of a possible new impulse 4 - Wait for your pattern pick a set of patter, in this example is B&R, and wait for it to happen, Just wait till it happen, if it dosen't you don't take the trade 5- Last but not Least, Plan your Trade ahead. everytime you want to take a trade, plan ahead and wait for it to happen, this is the most important thing. take only the trade that respect those rules and plan those trades. For Following better those rules i sugges you to do a check list that you keep on the side of the monitor, and see if your trade respec everytime all of those rules, if it does feel free to take the trade. For better result i suggest you to Backtest as much as you can, once you understand the market behaviour you can even trade live. Trade safe
Education
by leobernazzoli
Trendline Trading Strategy📉Basic rules for trading according to the Trendline Trading Strategy RULES 1. Always trade with trend, because Trend is your FRIEND. 2. Find trendline that has at least 2 touches. 3. Clear breakout of structure Chart 3. shows clear breakout of the zone Mostly you should rely on Volumes, that has to increase a lot. Moreover body part of the candlestick should close on the other side of a line. 4. High confluence areas Chart 4. explains that there should be a zone that all type of traders can open their trade and it is suitable for each of them. 1) MA traders 2) S&R traders 3) Pattern traders 4) Price action traders 5) Confluence traders 5. Wait for the Intermediate trend Breakout After huge impulse price goes to retest the level mostly. At this stage any formations can be formed here (trendline on smaller frame, flag, wedge and etc.) 6. Candlestick confirmation 1) List of Bull candles 2) List of Bear candles You should pay attention on a type of candlestick and what kind of movement does it signal. 7. Multi Timeframe observation _____________________________________________________ If you enjoy my FREE Technical Analysis , support the idea with a big LIKE👍 and don't forget to SUBSCRIBE my channel, you won't miss anything! Feel free to leave comments✉️ And always remember: "we don't predict, we react".
Education
by Berzerk_invest
5
Trendline Trading Strategy📉Basic rules for trading according to the Trendline Trading Strategy RULES 1. Always trade with trend, because Trend is your FRIEND. 2. Find trendline that has at least 2 touches. 3. Clear breakout of structure Chart 3. shows clear breakout of the zone Mostly you should rely on Volumes, that has to increase a lot. Moreover body part of the candlestick should close on the other side of a line. 4. High confluence areas Chart 4. explains that there should be a zone that all type of traders can open their trade and it is suitable for each of them. 1) MA traders 2) S&R traders 3) Pattern traders 4) Price action traders 5) Confluence traders 5. Wait for the Intermediate trend Breakout After huge impulse price goes to retest the level mostly. At this stage any formations can be formed here (trendline on smaller frame, flag, wedge and etc.) 6. Candlestick confirmation 1) List of Bull candles 2) List of Bear candles You should pay attention on a type of candlestick and what kind of movement does it signal. 7. Multi Timeframe observation
Education
by Berzerk_invest
3
Big Shadow Two Candlestick Pattern (Need To Know)Key Legend of GBPAUD 1 hourly candle and meanings: (Bullish Big Shadow Pattern Is On Chart) A) Major Support- Big Shadow pattern is at 1.80000 (huge psychological big bank/institutional number)- four zero's!!! B) Big Shadow Pattern- two big candlestick pattern (one going down/one going up-bullish or one going up/one going down-bearish). C) London Start- A lot of volume and liquidity happens at this time. 12:00 am PST/USA time- please convert to your local time. D) Institutional Selling- Large institutional selling candle. Why? because they know that the next hour they will be buy up this at lower prices, to go up. E) Institutional Buying- Large institutional buying candle. Why? They bought up last hours sell orders to take price action higher for rest of London session. F) Trade Stop Loss- This trade bullish on an hourly chart so use your plan to set stop loss comfortably below your entry order (Use ADR to set stop loss?) G) Trade Buy Entry- Per chart example: 1.80300 would be a great entry with a stop loss, per risk management and your plan. H) Up To 100 Pips- Price pip profit scale noted on chart: up to 100 pip of possible by end of London session (which is best time to exit all trades). I) Trade Exit Area- 1.81300 would have been a great exit with London session and at a round number (which institutions and retailers love to trade around). J) London End- Very low volume and liquidity happens at end of London session. 9:00 am PST/USA time- please convert to your local time.
Education
by Anbat
Bearish Cycle in the MarketBearish Cycle in the Market 1) "market maker spread" is the maximum and minimum of the initial channel. This is usually 25-50 pips high. 2) "Stop Hunt" usually consists of three movements that can occur in a short time. Three impulses will be marked on the "live" candle. The end of the stop hunt results in the extreme value (LOD) of the cycle and gives the first signal of where the reversal will occur. 3) "Zone Shift" is a movement intended both for accumulation and for keeping the trading volume concluded at the maximum of the price movement. According to my observations, I can say that after the "Zone Shift" consolidation is formed, volume continues to accumulate. In these places, you can just look for an entry point. 4) A large impulse move during the initial channel may still be worked by resetting the initial channel hi / lo AFTER the move occurs and then looking for stop runs from the reset channel. 5) Correct entry in the second stage with “peak formation” will use the “zone shift” to take profit. 6) Use the bigger picture (1 hr & 4 hr time frame) to identify levels for possible entries. At the lowest level (15min), take trades ONLY from the LOD / HOD. ------------------------- Additionally: Duration of consolidation after stopping hunting before HOD / LOD Difficult to define. We do not know how long a major player will take to gain a position and we do not know how much volume he needs. A) The previously accumulated volume can be quite large, so no consolidation is required and a V-shaped bottom occurs. B) Additional time may be required to accumulate volume . C) Additional time may be required followed by the expected search for a second stop (wide W-pattern) ------------------------- Share your opinion in the comments and support with likes. Thanks for your support!
Education
by DeGRAM
5
Bearish Cycle in the MarketBearish Cycle in the Market 1) "market maker spread" is the maximum and minimum of the initial channel. This is usually 25-50 pips high. 2) "Stop Hunt" usually consists of three movements that can occur in a short time. Three impulses will be marked on the "live" candle. The end of the stop hunt results in the extreme value (LOD) of the cycle and gives the first signal of where the reversal will occur. 3) "Zone Shift" is a movement intended both for accumulation and for keeping the trading volume concluded at the maximum of the price movement. According to my observations, I can say that after the "Zone Shift" consolidation is formed, volume continues to accumulate. In these places, you can just look for an entry point. 4) A large impulse move during the initial channel may still be worked by resetting the initial channel hi / lo AFTER the move occurs and then looking for stop runs from the reset channel. 5) Correct entry in the second stage with “peak formation” will use the “zone shift” to take profit. 6) Use the bigger picture (1 hr & 4 hr time frame) to identify levels for possible entries. At the lowest level (15min), take trades ONLY from the LOD / HOD. ------------------------- Additionally: Duration of consolidation after stopping hunting before HOD / LOD Difficult to define. We do not know how long a major player will take to gain a position and we do not know how much volume he needs. A) The previously accumulated volume can be quite large, so no consolidation is required and a V-shaped bottom occurs. B) Additional time may be required to accumulate volume. C) Additional time may be required followed by the expected search for a second stop (wide W-pattern) ------------------------- Share your opinion in the comments and support with likes. Thanks for your support!
Editors' picks
Education
by DeGRAM
6
Inverted HammerWhat Is the Inverted Hammer Candlestick? The Inverted Hammer candlestick formation occurs mainly at the bottom of downtrends and can act as a warning of a potential bullish reversal pattern. What happens on the next candle after the Inverted Hammer pattern is what gives traders an idea as to whether or not prices will go higher or lower. What Does the Inverted Hammer Look Like? The Inverted Hammer formation is created when the open, low, and close are roughly the same price. Also, there is a long upper shadow which should be at least twice the length of the real body. What Does the Inverted Hammer Mean? On this chart of CRDT/USD you make see that there is a double confirmation of price reversing. To some traders, this confirmation candle, plus the fact that the downward trendline resistance was broken, gave them a potential signal to go long. It is important to note that the Inverted pattern is a warning of potential price change, not a signal, by itself, to buy. Follow the chart and always remember to follow your trading strategy.
HITBTC:CRDTUSDEducation
by Berzerk_invest
Bullish Cycle in the MarketBullish Cycle in the Market 1) Use the higher time frames to determine the direction of the trend, the boundaries of the consolidation channels, and look for the entry point on the lower time frames. 3) "Zone Shift" is a movement intended both for accumulation and for keeping the trading volume concluded at the maximum of the price movement. According to my observations, I can say that after the "Zone Shift" consolidation is formed, volume continues to accumulate. In these places, you can just look for an entry point. 4) "Stop Hunt" usually consists of three movements that can occur in a short time. Three impulses will be marked on the "live" candle. The end of the stop hunt results in the extreme value (LOD) of the cycle and gives the first signal of where the reversal will occur. 2) Correct entry in the second stage with “peak formation” will use the “zone shift” to take profit. 5) Impulse move during the initial channel may still be worked by resetting the initial channel hi / lo AFTER the move occurs. 6) The high and low of the initial channel is called the "market maker spread". This it typically 25-50 pips in height. ------------------------- Additionally: Duration of consolidation after stopping hunting before HOD / LOD Difficult to define. We do not know how long a major player will take to gain a position and we do not know how much volume he needs. A) The previously accumulated volume can be quite large, so no consolidation is required and a V-shaped bottom occurs. B) Additional time may be required to accumulate volume . C) Additional time may be required followed by the expected search for a second stop (wide W-pattern) ------------------------- Share your opinion in the comments and support with likes. Thanks for your support!
Education
by DeGRAM
9
Bullish Cycle in the MarketBullish Cycle in the Market 1) Use the higher time frames to determine the direction of the trend, the boundaries of the consolidation channels, and look for the entry point on the lower time frames. 3) "Zone Shift" is a movement intended both for accumulation and for keeping the trading volume concluded at the maximum of the price movement. According to my observations, I can say that after the "Zone Shift" consolidation is formed, volume continues to accumulate. In these places, you can just look for an entry point. 4) "Stop Hunt" usually consists of three movements that can occur in a short time. Three impulses will be marked on the "live" candle. The end of the stop hunt results in the extreme value (LOD) of the cycle and gives the first signal of where the reversal will occur. 2) Correct entry in the second stage with “peak formation” will use the “zone shift” to take profit. 5) Impulse move during the initial channel may still be worked by resetting the initial channel hi / lo AFTER the move occurs. 6) The high and low of the initial channel is called the "market maker spread". This it typically 25-50 pips in height. ------------------------- Additionally: Duration of consolidation after stopping hunting before HOD / LOD Difficult to define. We do not know how long a major player will take to gain a position and we do not know how much volume he needs. A) The previously accumulated volume can be quite large, so no consolidation is required and a V-shaped bottom occurs. B) Additional time may be required to accumulate volume. C) Additional time may be required followed by the expected search for a second stop (wide W-pattern) ------------------------- Share your opinion in the comments and support with likes. Thanks for your support!
Editors' picks
Education
by DeGRAM
4
PB&J: Shadow-30PB&J: SHADOW-30 If you are new to trading, then start with this pattern! It is easy to identify, easy to learn, and easy to trade. What more could you ask for? HOW TO TRADE THE SHADOW-30 CHART PATTERN This can be an "everyday" pattern because of its reliability. It is easy to spot and simple to trade. THE SETUP The name Shadow-30 refers to a "shadow" that slices through the "30" period exponential moving average. This looks like a Hammer on the chart but it doesn't have to be perfect to be considered a Shadow-30. - The color of the real body is not important. - The shadow on the chart flushes other traders out of their position. Note: There is nothing special about the 30 period moving average. It is just a reference. Look to the left on the chart to determine support and resistance. When you are trading any kind of long lower shadow or Hammer pattern, always look for volume to be higher than the previous day . - This suggests that many traders were shaken out and demand is picking up. - This is important! THE ENTRY If you are able to trade during the day then buy on the day of the Hammer near the end of the day. You do not need any kind of "confirmation" or anything else. You only need to see that price is at a support level and that demand is coming (volume). That is all the confirmation you need. If you cannot trade during the day then place your buy stop above the high of this Hammer day. The next day you'll have to check to see if your order gets filled and then place your stop loss order. You could also use a bracket order. THE STOP LOSS ORDER There are two options for the placement of your stop loss order. Each has advantages and disadvantages. You decide what is right for you. Option 1: - Put your stop under the low of the Hammer. The advantage to this is that your stop is far away from your entry price and you will not likely get stopped out prematurely. The disadvantage to this is that because your stop is so far away, you will have to buy fewer shares in order to comply with your money management rules. Option 2: - Move down to the 1H chart and put your stop below the support area closer near the real body of the candle. The advantage to this is that you get to buy more shares because your stop is closer to your buy price. The disadvantage to this is that because your stop is so close, you may get stopped out more often, before a big move happens. TAKING PROFITS When you are trading wide range days like Hammers you will find out that many times the chart will trade sideways for a day or two. That is fine. You are already in the trade just waiting for other traders to enter. Also, the days that follow a Hammer are typically low volatility, narrow range days like Doji. Be patient! Do not get anxious to move your stop up. Wait for price to actually move in your favor before you begin trailing your stop. Once price moves in your favor, then you safely begin to trail your stop loss using your favorite exit strategy to lock in profits. TRADING TIPS Focus on those charts where the real body of the candle is close to the 30 EMA. You want as many traders as possible shaken out of this before you get in. This setup is reversed for short positions except now your are looking for charts with a Shooting Star pattern through a declining 30 EMA. Give more weight to setups where price gaps away from the previous candle to end the day in a Hammer. Always look to the left on the chart to make sure price is at a significant support or resistance area. WHEN GOOD CHART PATTERNS GO BAD Yes, you will have losing trades with this pattern. There is no pattern that will guarantee all winning trades! But with proper money, trade, and self management, you can do very well with this setup.
INDEX:BTCUSDEducation
by zerocashcool
Bullish Candlestick's Patterns You Must Know🗒 Just browsing through my analysis means a lot to me. ➡️ Please follow the analysis very carefully and every detail of the chart means a lot. And always entry depends on many reasons carefully studied Always enter into deals when there are more than 5 reasons combined ------------ Bullish Exhaustion Bar ➕A bullish exhaustion bar ---------- opens with a gap down. Then, it works its way up to close near its top In This case, the gap remains unfilled. In addition, high volume should occur with the exhaustion bar. What does it mean? Its name explains it all. It represents exhaustion and a failed lastditch attempt. After the bears are exhausted, the bulls will takeover and the market will rise. After the bulls are exhausted, the bears will take the market down. How do we trade it? 1. Buy above a bullish exhaustion bar ---------------------- ➕Bullish Pin Bar ----- It looks like the nose of Pinocchio. It has a long and obvious tail. For bullish pin bars, the lower tail take up most of the bar. For bearish pin bars, it is the upper tail that dominates. What does it mean? Paraphrasing Martin Pring, the pin bar lies like Pinocchio. With its long tail, a pin bar breaks a support or resistance momentarily to trick traders into entering the wrong direction. These traders are trapped, and there is always money to be made when you find trapped traders. ------------- ➕Bullish Reversal Bar --------- A bullish reversal bar ------ pattern goes below the low of the previousbar before closing higher. What does it mean? For the bullish pattern , the market found support below the low of the previous bar. Not only that, the support was strong enough topush the bar to close higher than the previous bar. This is the first sign of a possible bullish reversal. How do we trade it? 1. Buy above the bullish reversal bar in a uptrend --------------- ➕ Bullish Two-Bar Reversal ----------- The two-bar reversal pattern ------------- is made up of two strong bars closing in opposite direction. The bullish variant consists of a strong bearish bar followed by a bullish bar. Reverse the order to get its bearish counterpart. ------------- What does it mean? Every reversal pattern works on the same premise. A clear rejection of a down thrust is a bullish reversal, and a clear rejection of an up thrust is a bearish reversal. In this case, the first bar represents the first thrust, and the second bar represents its rejection. How do we trade it? 1. For bullish reversals, buy above the highest point of the twobar pattern -------- ➕ Key Reversal Bar ------- A key reversal bar --------- is a specific instance of a reversal bar that shows clearer signs of a reversal. A bullish key reversal bar opens below the low of the previous bar and closes above its high. By definition, key reversal bars open with a price gap. As price gaps within intraday time-frames are rare, most key reversal bars are found in the daily and above time frames. How do we trade it? ----------- 1. Buy above a bullish key reversal bar (If uncertain, wait for price to close above it before buying.) ----------- ➕Bullish 3 Bar's Reversal ------ In sequence, the three bars of the bullish pattern are: ----------- 1. A bearish bar 2. A bar has a lower high and lower low 3. A bullish bar with a higher low and closes above the high of the second bar What does it mean? -------------- A three-bar reversal pattern shows a turning point. Compared to the other reversal patterns, the three-bar reversal pattern is the most 10 Price Action Bar Patterns You Must Know conservative one as it extends over three bars, using the third bar to confirm that the market has changed its direction. How do we trade it? 1. Buy above the last bar of the bullish pattern
Education
by GoldenEngine
16