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Candlestick Analysis

[EDUCATIONAL] ENGULFING PATTERNENGULFING PATTERN is often considered a "reversal pattern ", but it is not always so, this model can be considered a simple pause of the major trend, and for this reason, we have developed a potential "minimum target". On the chart we published four basic questions, and if you are interested in learning this pattern, subscribe to this idea, because soon we will give an answer to each of them .... but not theoretically, but with practical examples in real time !! The most beautiful thing of trading?? ...you never finish to learning .... Thank you for your support and trade with care!
Education
by TheAnonymousBanker
9
How to Infer Currency Strength Without ANY IndicatorsToday I received a question regarding what indicators or websites to use to infer and compare the strength between related currencies. I responded with a long winded explanation as to why it is not necessary to use indicators or websites to infer such information because it can be realized solely through price action. If we look at the daily range today on GBPUSD, EURUSD, and EURGBP which resulted from the huge miss on the NFP numbers, we can gauge the strength between the EUR and the GBP versus the dollar as well as the EUR vs the GBP. In looking at the daily ranges of these pairs we will first notice that they all had a strong move to the upside. This of course being due to the weakness and downside movement on the dollar ultimately resulting form the miss on the NFP number. Therefore right off the bat we can infer that foreign leading currency pairs should be strong against the dollar today and we can expect to see pairs like the GBPUSD and EURUSD moving to the upside. That is exactly what we see here... price moved as expected. Now... what if you want to compare the relative strength of the GBP vs the EUR as it relates to the dollar weakness. Well then we will need to bring the cross pair EURGBP into the picture. The EURGBP cross pair will tell you how strong the EUR is vs the GBP. We see that the daily range of the EURGBP cross pair is roughly 90 pips and as of right now this pair has held that range indicating the EUR strength that we see clearly on the EURUSD. The daily range of the EURUSD is roughly 215 pips and it too has held this range indicating its strength. Since most of the day's trading is done for being that it is a Friday we can expect to see these prices hold through to the close of the day. So we have concluded now that the EUR is for sure strong right now against the dollar and we are thinking since EURGBP is so strong as well that this rally in the GBPUSD might be misleading and the GBP might not be all that strong right now. By looking at the GBPUSD we can see that it's daily range was roughly 160 pips but as of right now it has already give up roughly 1/3 of that range and price is showing signs of continued downside movement. Seeing this we can conclude that the EUR is certainly stronger than the GBP right now and going into next week if we continue to see upside movement on EURUSD and EURGBP we can expect to see downside movement on GBPUSD. We hope you found this to be insightful and if you did you should definitely check out our YouTube channel goo.gl/g8sWn3 where we do live streams every Monday Wednesday and Friday at 7 p.m. eastern standard time. Enjoy your weekend!
Education
by UnknownUnicorn261897
5
How to trade a gap? (strategy, short term 1 minute chart)1 we have to analyse what kind of gap was it. ( runaway, breakaway, exhaustion) 2 current gap on a 1 minute chart is a Breakaway, as it has broken through a short term trend line, 3 when we have a breakaway gap, the gap close is less likely, so we're waiting for a consolidation that will nearly fill the gap, in our sample it's 50% Fibonacci area. 4. we're placing a limit orfer to catch a better price 5. in case if the order has not been hit, we're waiting for earlier confirmation of our signal to manually enter a trade. 6. in case if the gap trade has been missed, we can use a gap as a compass for a future trades (short term), for example, current potential target can be a stop order trade, but I will explain it later.
Education
by Marenno
1
GBPCAD - Price Action Case Study - Multiple Time FramesGreetings Fellow Traders, Price Action, Support and Resistance are a very critical part of trading and always aid in the removal of emotions from any trading scenario. I've posted a couple of analyses recently regarding this pair, and one of them turned out to be an opportunity that would have been a loss. It's just as important to know when to exit your trade as it is to know when to enter them. A lot of the publications that I make here are almost certainly geared towards levels to pay attention to for entering, so this is an example of how we use the same trading method to determine that we should absolutely no longer be in a specific trade. Refer to my previous GBPCAD Analyses below for reference. If you've done your due diligence as a trader and have properly identified a level you think the market is adhering to, when that level is broken, it should maintain the reactionary characteristic. There are many fundamental and technical ways to describe the reasons why, I won't get into that here, but I'll presume that you've heard that old support becomes new resistance and vice versa. Case Study: Knowing when to close a losing trade. Last week after a confirmed break on the daily chart the GBPCAD was gearing up for a move lower but first we were looking for price to come back to the support/resistance level that was broken to indeed confirm that a break had occurred. The pair began to sharply rise late last week which was expected for us to get into a short...however when the pair began to reach the key technical level it did not stop. Illustrated above you can see a reactionary zone where price was expected to stop on the 1 hour time frame...no such stop happened. This failed retest is visible on the 4 hour and Daily charts as well. The Expected Reactionary Zone is taking the trend line that you identified and the high (or low depending on direction of trade) of the candle that confirmed the break of your key technical level. Here is a daily chart of the same trade output: In this daily chart you can see the same trade, the confirmed break followed immediately by a candle that does not retest. Many of you may have noticed for my trades that I tend to use larger time frames yet many of the moves that are identified happen largely on the smaller time frames as well. The core reasoning behind using higher time frames is it essentially acts as a filter. For those that trade news, and rumors, and reports....these can have a tremendous impact on a 15 minute candle...but to a daily or weekly candle...it's part of the bigger picture. As long as we account for the flexibility of the rumor volatility we are able to rely on candle closes as a key identifier in our trade decisions. Traders need to account for market reactions in their strategies because if it was as simple as old support = new resistance, we would be able to predict highs and lows with 100% accuracy. That flexibility has a limit, and that limit is when the daily/weekly candle closes. The way this is used to a trader's advantage is to help in removing the emotions from a trade decision. Do not marry yourself to your own ideas, traders need to stay agile, and adapt to market condition's as they change. If the market gives you relevant info that nullifies the analysis it cannot be ignored. If the Daily Candle closes above (or below depending on trade direction) an identified key technical level after a confirmed break, the retest of that level is considered null and void, any trade taken in anticipation of that retest should be closed immediately. Furthermore, that identified key technical level is now considered invalid and should be removed from the picture as it is no longer controlling market conditions. Thanks everyone for reading and I hope this helps in some manner. If you enjoy what I have to offer, feel free to comment, follow or "like"
Education
by Synapse
Spotting Support & Resistance through Candles #forexHere is another example of how the high and low for high wave candles are usually trade-able support and resistance levels. I think the chart explains it all. When spotting a long legged candle(long shadows) its important to keep an eye on the high and low of the candle as potential key levels of resistance and support. In many cases those levels act as barriers for the price action and could provide good trading signals if accompanied with other technical analysis tools within your whole strategy. Exclusively Subscribers to my mailing list will get one month access to my trading account . subscribe here thefxchannel.com , My best regards Technician
Education
by Technician
Watch This Candle: #AUDJPY Hammer Weekly | #FOREXIntroducing another posts type named " Watch This Candle", I will try to spot and explain the main important candlesticks patterns. I wish you like it. If you do please comment and agree so i continue... ----------------------------------------------------------------------------------------------------------------------------------------------------------- Candlestick Pattern: Hammer Prior Trend: Down Implications/Use: Bullish reversal, Bullish correction, good for scalping Introduction One of the most powerful tools in gauging shifts in market balances, the hammer candlestick pattern is one of the patterns I personally find extremely useful in the process of determining trend reversals. Definition There are plenty of candlestick patterns; however the hammer is of the most illustrative. Hammer candles form when a security moves sharply lower after the open, but rebounds to close significantly above the low of the session. The shape The Hammer has a long lower shadow with a small body, the lower shadow should at least be double the size of the body, and the body can be green(up) or red(down), however through my experience I find the ones with green body more reliable. The Hammer should be preceded by a clear downtrend or at least several down days. Note: breakouts below the low of the hammer usually lead to further bearish movement, and confirms bearish continuation. $$ It's strongly recommended to always use candlestick patterns in conjunction with other technical tools to increase the chances of success. For example, a hammer near a support level or the 50-days Simple Moving Average. Note: breakouts below the low of the hammer usually lead to further bearish movement, and confirms bearish continuation Guys, please check my new website thefxchannel.com , vote and subscribe , thank you...
Education
by Technician
36
EURUSD - Daily Chart very simple "trend following strategy". . This is a very simple, yet very effective trend following strategy. 1. Display price using Heiken Ashi candlestick. (Removes a lot of the noise and allows to see smoother movement). 2. Trading daily charts allows less whipsaw movement and much cleaner entry/exits. 3. Confirm if trend is UP, DOWN or SIDEWAYS. Entry Signal is: 1. Medium to Large HA candle changes from Green to Red, or vice versa shooting up/dn through the 8-WMA & 14-MA. 2. The candle MUST breech both moving average lines to validate entry long or short. 3. Enter trade Long/Short on close of that candle. 4. RSI 90% of time will be in Overbought or Oversold area when candle breech trigger occurs. (further validating entry) 5. Typically the large HA candle that breeches the two moving average lines will NOT have a wick below it. * Avoid entering during times of consolidation, characterized by mix of red/green HA candles with wicks on both sides. * Look for entries after touch of support or resistance areas. * Trade becomes invalid AFTER ENTRY if at any time a candlestick changes color and shoots up or down in the opposite direction crossing BOTH of the 8/14 moving average lines.
Education
by Dale_Ansel
26