ForexFloorTrader

ForexFloorTrader

THE ANATOMY OF THE CANDLESTICK The CandleStick is composed of three main parts, the Real Body, the Upper Wick, and the Lower Wick. The Real Body is defined as the area between the Open and the Close of the CandleStick. The length of the Real Body represents the momentum of trading during the formation of the candlestick. A "Long Body" also called a "Tall Body"...

ForexFloorTrader

TUTORIAL The latest candle (Friday 4/24/2020) formed a "Bullish" candle. A bullish candle is formed when its real body is approximately the same size as the previous candles, it "Closes" near or at its "High" and has a lower "Shadow" less than 2 times the length of its real body. It looks like a "Hammer" candle pattern but is not a hammer as its lower shadow is...

ForexFloorTrader

TUTORIAL Today's candle broke out below support and closed the session below support; this is called a "Momentum Breakout". The breakout below support indicates price is ready to continue the downward trend. The "Momentum" part of the breakout means price typically starts to accelerate or increase range, with each day following the breakout. TRADING A breakout...

ForexFloorTrader

TUTORIAL Today's candle formed a Spinning Top. A Spinning Top is formed by a small real body with supper and lower shadows less than the length of the real body. By itself, a Spinning Top indicates a drifting market. Notice the Spinning Top's real body remains between Support and Resistance. REFRESHER The green Spinning Top that formed three days ago indicated...

ForexFloorTrader

TUTORIAL Tuesday's candle formed a Doji. A Doji is a candle pattern where the Open and Close are very close together and the candle has both upper and lower shadows. A Doji is a neutral candle and is neither bullish or bearish. The high of a Doji indicates resistance and the low support. As such I draw a horizontal support and resistance line. Notice the...

ForexFloorTrader

TUTORIAL Monday's candle formed a Doji. A Doji is a candle pattern where the Open and Close are very close together and the candle has both upper and lower shadows. A Doji is a neutral candle and is neither bullish or bearish. TRADING When a Doji is in between Support and Resistance I do not make any trade decisions as a Doji is just an indication the market is...

ForexFloorTrader Updated 

TUTORIAL Friday's candle formed a Spinning Top. A Spinning Top is formed by a small real body with supper and lower shadows less than the length of the real body. By itself, a Spinning Top indicates a drifting market. However, this spinning top's lower shadow's low price was equal to the low price of the previous candle forming a Bullish Tweezer. A Bullish...

ForexFloorTrader

Sorry, this was accidentally published as a Private Idea yesterday, so I am re-publishing it today! TUTORIAL Today's candle was a strong bearish candle. A strong bearish candle opens at the high or very close to the high of the session and closes near its low. A bearish candle would open within 25% of the high of the candles range and close within 25% of the low...

ForexFloorTrader

Today's candle was a Neutral candle. A Neutral candle is a candle that closes near the middle of its range. The trading psychology here is the market opened near its high and was able to sell-off. Then the bulls entered the market and pushed the market back upward but were not able to move the market back to the high of the session. It was like a tug-of-war...

ForexFloorTrader

Today's candle formed a bullish Engulfing candle indicating the trend is upward. If I would have entered a Short position based upon Short Entry method number one I would have been stopped out. Recall Short Entry method number one is riskier as price more often moves against the Short position and stops the position out than Short Entry method number two or...

ForexFloorTrader

Please read Part 8 for context to Part 8B. I forgot to add the additional methods of entering a Short trade based upon today's candle. Since this is a tutorial I want to provide all the opinions I can think of. Keep in mind this is a tutorial using live trading of the currency pair EURUSD as and example and is not a recommendation to actually place trades on...

ForexFloorTrader

Today's candle formed an Engulfing candle. Engulfing candles are reversal candles. In order for an Engulfing candle to be a valid reversal candle, it must occur at a support or resistance level. In the case here the engulfing candle occurred at a resistance level. In addition, today's candle closed below a resistance level indicating a bearish condition. ...

ForexFloorTrader

Friday's candle (04102020) was a Doji. A Doji is an indecision candle. Notice this Doji formed at a resistance level confirming the price level at 1.09265 as resistance. So how do we make trade decisions based upon this candle? Before I can make a trade decision based upon this candle I need to see which direction this market is going to move in the future. ...

ForexFloorTrader

Today's candle was a bullish candle, however, it was not a strong bullish candle. A strong bullish candle would have closed at or very close to the high of the session. The wick at the top of the candle indicates some selling pressure. A strong bullish candle would have little to no indication of selling pressure. Notice that today's candle closed very close...

ForexFloorTrader

Today's candle is a Neutral candle. A Neutral candle identifies a session that closes midway between its high and low price of the session. Similar to a Doji candle that forms early in a trend the Neutral candle also indicates a pause in the market. Some traders might call this a bearish Harami however it is not. This candle has the form of a Harami however a...

ForexFloorTrader

Today's candle is a Bullish candle indicating the price is ready to move higher. At this point, it is no longer wise to continue to hold a Short position. It is now time to take profit in the last half of the open trade to close out the complete Short position. The question now is should I take a Long trade? The answer is NO because the trend continues to be...

ForexFloorTrader

Monday's candle (04062020) was a Doji. A Doji is an indecision candle. In this condition, I now need to wait to see it the market will close above the high of the Doji to inform me the market is going higher or close below the low of the market to tell me the market is moving lower. According to Steve Nison, the Japanese say the market is now at a delicate...

ForexFloorTrader

Friday's Update 04032020 Today's candle was a small candle with a lower shadow about the same length as the real body of the candle. This candle is considered a very weak bullish candle. It is bullish because the lower shadow indicated buyers were able to move price above the low of the session and to move it back to approximately mid-range. It is also bullish...