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Candlestickpattern

The dollar remains strongEURUSD made a lower high yesterday and we now see a test of 1.0700 again. We continue to watch for a breakout and exhaustion of the move. While we wait for clear opportunities in the major pairs we are trading EURAUD where we are seeing a pullback from the support zone. (We shared about this movement in yesterday's email.) If the EURUSD continues to hold at these levels and the decline remains smaller than that of the AUDUSD, this will help the rise in the EURAUD.
by ForexTrendline
2
EUR/USD - DO WE KEEP PUSHING DOWN?Hello everyone, what is EUR/USD next move? On higher TF's we see a big push to the downside but eventually the market is getting exhausted. We are waiting till the market makes a pushback to our 0.786 FIB level or just in between the 1 and the 0.7. If the bulls cant keep the market up we should get a push back further to the downside at our lower support zone. UPDATES COMING SOON! All information found here, including any ideas, opinions, views, predictions, suggestions. are for informational entertainment or educational purposes only and should not be construed as personal investment advice.
by BTM-Trading
Understanding Basics of Candlestick Charts Candlestick patterns play a key role in quantitative trading strategies owing to the simple pattern formation and ease of reading the same. For using candlestick patterns, you only need to have a basic understanding of how the candlesticks are formed. Also having some idea about the various ways in which these candlesticks can be interpreted would be useful. However, if you are new to candlesticks trading, this article will help you gain a complete understanding of candlesticks. ______ The anatomy of the Candlesticks has stayed almost similar throughout the ages to give us the current shape and meaning. It consists of 4 distinct values namely: The opening price, Closing price, The highest prices for a given interval, and The lowest prices for a given interval. It’s like a combination of a line chart and a bar chart, where each bar represents all four important pieces of information for an interval. ______ Body The hollow or the filled portion of the candlestick is called as the body of the candlestick. Long Body - Indicates heavy trading in one direction and strong buying or selling pressure Small Body - Indicates lighter trading or little buying or selling activity Shadow The long thin lines above and below the body is called the shadow of the candlestick. Upper Shadow - High is marked by the topmost part of the upper shadow Lower Shadow - Low is marked by the bottom part of the lower shadow. ______ On the chart above, you can see how the body to shadow ratio defines the strength of the candlestick. Learning to apply that in a combination with other technical tool can help you to quite reliable predict the price movements. What do you want to learn in the next post?
TEducation
by UnitedSignals
8
TSLA: Dangerous Top Signal.• TSLA hit our target area last Friday, around $177, and it is now triggering a Bearish Engulfing candlestick pattern on the daily chart. I mentioned this target on our previous TSLA analysis – link below this post; • The problem is that TSLA triggered this Bearish Engulfing under the $177 resistance, and it is back under the 21 ema as well, indicating that TSLA is very weak at the moment; • On the daily chart, the next support area is around $154 (black line). • On the 1h chart, there’s a short-term support line at $165, which was a previous resistance level; • Below this support, there’s an open gap at $161, and another support line at $158. For now, it appears the $165 line is our main support level, as TSLA is trying to react this morning. I’ll keep you updated on this. Remember to follow me to keep in touch with my daily analysis.
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by Nathan_The_Finance_Hydra
9
History: A Brief History Of Candlesticks Introduction: An important tool in financial analysis, the candlestick chart has a long, illustrious history that dates back several centuries. Candlestick charts, which have their roots in Japan, have developed into a popular way to visualize price changes and market patterns. Lets explore the intriguing history of candlestick charts, with special attention paid to their development, importance, and ongoing relevance in contemporary finance. Origins in Japan: Candlestick charts have their origins in Japan, specifically the Edo era in the 18th century. This novel approach to charting price changes is credited to a Japanese rice dealer by the name of Munehisa Homma. The "God of Markets," Homma, used candlestick charts to study and anticipate changes in the price of rice. His ideas and methods were recorded in a book titled "Sakata Rules," which served as the basis for this distinctive graphic display of market data. Munehisa Homma below Candlestick Chart Components: Individual "candles," each of which represents a distinct time period (such as a day, week, or month) in the market, make up the basic building blocks of a candlestick chart. The open, high, low, and close prices are the four main elements that each candle is made up of. The upper and lower wicks or shadows of the candle indicate the peak and low prices that were experienced during the specified time period, while the body of the candle symbolizes the price range between open and close. Popularization and Spread: Candlestick charts were mostly exclusive to Japan up until the 19th century, when a British trader by the name of Charles Dow worked to bring them to the attention of the West. During his tour to Japan, Dow, the co-founder of Dow Jones & Company and architect of the Dow Jones Industrial Average, learned about candlestick charts. He translated Homma's findings and added candlestick analysis to his own technical analysis techniques after seeing their potential. Charles Dow below Further Development and Modern Application: In terms of pattern recognition and interpretation, candlestick charts have improved and expanded over time. Steve Nison, an American trader who popularized candlestick analysis on Western financial markets, deserves most of the credit for this development. Nison carefully researched and built upon Munehisa Homma's studies, adding new candlestick patterns and improving the way they were interpreted. His 1991 publication of "Japanese Candlestick Charting Techniques," which is now considered a classic, popularized candlestick charts among Western investors. Steve Nison below Today, traders, investors, and technical analysts utilize candlestick charts extensively across a variety of financial markets, including stocks, commodities, and currency. The visual depiction of price patterns and trends aids in spotting potential trend reversals, continuations, and market emotion, offering insightful information for making decisions. Conclusion: The development of candlestick charts is proof positive of the value of visual aids in financial analysis. Candlestick charts, which have its roots in Japan from the 18th century, have developed into a widely used and essential instrument in the world of trading and investment. These charts have been improved and adjusted for contemporary markets thanks to the work of pioneers like Munehisa Homma, Charles Dow, and Steve Nison, giving traders a thorough perspective of price movements and insightful knowledge about market dynamics. Candlestick charts are expected to keep guiding traders and assisting them in making educated judgments in the complex world of finance as time goes on.
PEducation
by ChristopherDownie
19
End of Declining Phase!The candlestick indicates a divergence pattern where the pattern is in the declining phase and is already at the end of the cycle. With the possibility of beginning the phase for accumulation. For a long investment strategy trader, then this is a sign to enter and ride to the next peak price; R1. Let's save LCTITAN in WL and watch out for significant price movement efforts with result in a large volume compared with the previous day or above the MA line. R 1.25 S 0.95
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by eskopitehmilo
1
TSLA: Bull Trend Pullback - Watch Out for These Key Points!• Yesterday, TSLA did a Gravestone Doji candlestick pattern, just under the $191 resistance line, indicating a pullback; • As I mentioned yesterday, any pullback to the $177 area wouldn’t be the end of the world, as the trend is still bullish (the link to my previous analysis is below this post, as usual); • So far, it seems this is just a pullback, as there’s no bearish reversal structure on TSLA yet; • If TSLA loses the $177, then it might frustrate the bullish sentiment; • On the weekly chart, TSLA is still inside a Descending Channel, and it seems it found a resistance at the upper trend line again; • Therefore, TSLA just reached a key resistance level this week. If it breaks this resistance in the next few days, we will see a meaningful bullish reversal pattern being triggered on the weekly chart, reversing the long-term bearish sentiment seen since 2021. I’ll keep you updated on this. Remember to follow me to keep in touch with my daily analysis.
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by Nathan_The_Finance_Hydra
9
STOP! Read before you consider to engageHALT! Don't follow this trading idea blindly. You should know that I've a strong bias to long the GBPUSD on the higher timeframe, the daily and weekly chart. I'd engaged in a strategy that I've personally tested for the past 12 years. The ABCD pattern showing up on the 8 range bar provide such an opportunity for me to engage the trade. What is really needed is for the first target to be hit and that would give me the right to shift stops to entry and enjoy the ride. The first 34pips(340usd/lot) of profits is what I need to let that happen and I'll keep my second target open. If you do not plan your trade in advance, don't jump in. If you had not traded ABCD pattern in your life, don't jump in. If you do not have the unwavering bias to long GBPUSD, don't jump in.
Long
by RaynLim
📊10 Candlestick Patterns You need To Know🔷 Bullish engulfing: A candlestick pattern where a smaller bearish candle is followed by a larger bullish candle, indicating a potential reversal of a downtrend. 🔷 Bearish engulfing: The opposite of a bullish engulfing pattern, where a smaller bullish candle is followed by a larger bearish candle, suggesting a potential reversal of an uptrend. 🔷Tweezer tops: Two consecutive candlesticks with equal or near-equal high prices, indicating possible resistance and a potential reversal from an uptrend. 🔷Tweezer bottoms: Similar to tweezer tops, but indicates support and a potential reversal from a downtrend. 🔷Bullish harami: A bullish harami is a candlestick chart indicator used for spotting reversals in a bear trend. 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. 🔷Morning star: A three-candle pattern consisting of a bearish candle, a small indecisive candle, and a bullish candle, indicating a potential reversal from a downtrend. 🔷Evening star: The opposite of a morning star pattern, consisting of a bullish candle, a small indecisive candle, and a bearish candle, suggesting a potential reversal from an uptrend. 🔷Three white soldiers: Three consecutive long bullish candles, typically seen as a strong bullish reversal pattern. 🔷Three black crows: Three consecutive long bearish candles, often considered a bearish reversal pattern. 🔷Three inside up : 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. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
Intraday Bullish Momentum swingThis is a follow up and actual trade taken by myself. I placed a short term buy today at 10:30A.M on AUDUSD simply because lower lows ceased being formed at a key support level. After a strong bullish correction trendline was broken then on the 4Hour the 8Moving Average crossed to the upside of the 21SMA. that's relevant because it lags behind price. The 1 hour provided some reversal signals at a clear support and the trade was essentially taken based on pure candlestick analysis. I love trading reversal candlesticks on top of support. Especially after a market gap on Sunday. I believe a potential inverted head and shoulders is on the way after price failed to make a lower swing low and is now attempting to create a new swing high. Potential short term up trend beginning with indecision candles then a bullish engulfing on top of a weekly support.
Long
by DesharedPierreJr.
It's Merely a RetracementIn a world where media and forums express bearish sentiments towards USDJPY, my unwavering bullish stance may have caught your attention. While others see a bearish retracement, I invite you to see the bigger picture. Take a glance at the weekly chart on the right, and you'll witness the bearish movement as nothing more than a mere retracement of the monumental US dollar skyrocketing trend I accurately predicted on 14th October 2021. It is this understanding that fuels my anticipation for an imminent buying opportunity. My attention is fixed on the 1-hourly chart on the left, where the market is poised to retest the crucial level of 137.46. This critical juncture presents the ideal scenario for a potential buying opportunity, perfectly aligning with the formation of a Bullish Bat Pattern. While others succumb to pessimism, I see the hidden potential for USDJPY to surge once again.
Long
by RaynLim
2
A Closer LookThe Intriguing Factors That Have Sustained My Interest in This Promising Buying Opportunity When it comes to GBPUSD, my sights are set firmly on one direction: buying opportunities. The stage is set for a potentially lucrative trade, and I'm eagerly awaiting the perfect entry point. On the 4-hourly chart, a retest of the trendline (right) holds the key to triggering a buying opportunity. As long as the price remains above the lowest trendline, a breakout could present an ideal entry. Alternatively, a break and close above the high at 1.2483 (also on the 4-hourly chart) could be the signal to jump in. Delving deeper, the 1-hourly chart (left) offers additional scenarios for a potential buying opportunity. A retest of support at 1.2421 or a more significant level at 1.2395 could both serve as triggers for an entry. But why this unwavering persistence? Let's turn our attention to the weekly chart, where a break and close above resistance becomes a compelling catalyst for my bullish stance. Although we remain within the sell zone, I'm already scouting for buying opportunities, anticipating a potential shift in momentum. Now, what if I'm wrong? It's a calculated risk. I understand that hitting stops is a possibility, but I mitigate that risk by ensuring most of my trades have a profit factor of 2. This means I can maintain profitability with a 40% accuracy rate. So, as the GBPUSD landscape unfolds, I remain resolute in my pursuit of buying opportunities, armed with strategic insights and a calculated approach to capitalize on potential gains.
Long
by RaynLim
Minimize Your Losses with Our Expert Guidance and StrategiesJust as I mentioned two weeks ago, my focus has remained unwavering on the EURUSD pair, specifically in search of a lucrative shorting opportunity. Today, I invite you to witness the unfolding of this anticipated trade. However, I exercise caution and patience as I await the crucial confirmation provided by a candlestick pattern. Currently, my attention is drawn to a potential retest at 1.0828 on the 1-hourly chart. This level presents a promising entry point for the short trade I have been eagerly awaiting. To maximize the outcome, it is essential for the market to refrain from breaching the critical support level at 1.0849 on the 1-hourly chart. Stay tuned for the final confirmation, as I assess the candlestick patterns and their alignment with my trading strategy.
Short
by RaynLim
1
🔋Candlestick Power📍Candlestick patterns are powerful tools used in technical analysis to analyze and predict price movements in financial markets, particularly in trading. They provide valuable insights into market sentiment and help traders make informed decisions. The open, close, and various components of a candlestick, such as the body and shadows, are crucial in determining whether it is bullish or bearish. 🔷A candlestick consists of a body and two shadows, also known as wicks or tails. The body represents the price range between the open and close of a trading period, while the shadows represent the high and low points reached during that period. 🔷A bullish candlestick occurs when the closing price is higher than the opening price, indicating buying pressure and market optimism. The body is typically filled or colored, indicating a bullish trend. The longer the body, the stronger the bullish sentiment. Shadows may exist above or below the body, and they represent the price range outside of the open and close. Long shadows indicate higher volatility during the trading period. 🔷A bearish candlestick forms when the closing price is lower than the opening price, reflecting selling pressure and market pessimism. The body is often empty or colored differently to indicate a bearish trend. Again, the length of the body provides information about the strength of the bearish sentiment. Shadows can be found above or below the body, representing the price range outside the open and close. Similar to bullish candles, long shadows suggest increased volatility. Traders use different candlestick patterns and combinations to identify potential trend reversals, continuation patterns, or price consolidations. For example, a doji candlestick, where the open and close are very close or equal, signals indecision in the market and may precede a reversal. Engulfing patterns occur when one candle fully engulfs the body of the preceding candle, indicating a potential trend reversal. However, it is important to note that candlestick patterns should be used in conjunction with other technical indicators and fundamental analysis to confirm the validity of a potential trade signal. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
3