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Candlestickpattern

BASICS TECHNICAL ANALYSIS - TREND - SUPPORT - RESISTANCESimple explanation about trend, support and resistance. A trend can move in two directions. An uptrend defined by higher lows and higher highs, or a downtrend defined by lower highs and lower lows. Then there is the sideways phase . As the name suggests, there is no trend here. The trend line will be pulled upwards along the significant lows during an uptrend and pulled up the significant highs during the uptrend. Common mistakes with a candlestick chart (candles chart) which I could observe here: The lines are partially pulled along the candle bodies and that is FALSE. If there is a shadow, then the line is drawn on the shadow and not on the body!!! Resistance: When a price moves from the bottom to the top and pull back on the same point (price) over and over again. Support: When a short moves from the top to the bottom and pull back on the same point (price) over and over again.
COINBASE:BTCUSDEducation
by i-like-profit
Candlestick Definition History Candlestick charts are thought to have been developed in the 18th century by Munehisa Homma, a Japanese rice trader. They were introduced to the Western world by Steve Nison in his book, Japanese Candlestick Charting Techniques. They are often used today in stock analysis along with other analytical tools such as Fibonacci analysis. In Beyond Candlesticks, Nison says: However, based on my research, it is unlikely that Homma used candle charts. As will be seen later, when I discuss the evolution of the candle charts, it was more likely that candle charts were developed in the early part of the Meiji period in Japan (in the late 1800s). Description The area between the open and the close is called the real body, price excursions above and below the real body are shadows (also called wicks). Wicks illustrate the highest and lowest traded prices of an asset during the time interval represented. The body illustrates the opening and closing trades. the asset closed higher than it opened, the body is hollow or unfilled, with the opening price at the bottom of the body and the closing price at the top. If the asset closed lower than it opened, the body is solid or filled, with the opening price at the top and the closing price at the bottom. Thus, the color of the candle represents the price movement relative to the prior period's close and the "fill" (solid or hollow) of the candle represents the price direction of the period in isolation (solid for a higher open and lower close; hollow for a lower open and a higher close). A black (or red) candle represents a price action with a lower closing price than the prior candle's close. A white (or green) candle represents a higher closing price than the prior candle's close. In practice, any color can be assigned to rising or falling price candles. A candlestick need not have either a body or a wick. Generally, the longer the body of the candle, the more intense the trading. A hollow body signifies that the stock closed higher than its opening value. A filled body signifies the opposite. In trading, the trend of the candlestick chart is critical and often shown with colors. A candlestick pattern is a special occurrence of one or more candlesticks on a candlestick chart, which have predictive nature in technical analysis. Rather than using the open, high, low, and close values for a given time interval, candlesticks can also be constructed using the open, high, low, and close of a specified volume range (for example, 1,000; 100,000; 1 million shares per candlestick). In modern charting software, volume can be incorporated into candlestick charts by increasing or decreasing candlesticks width according to the relative volume for a given time period.
OANDA:XAUUSDEducation
by i-like-profit
2
How I Treat Candle Opens/Closes and Their SignificanceIn my view, there is nothing fundamentally important about a candle closing above or below a certain price. Yet, I still regularly use a candle close or open to describe a trading idea, and for good reason. To start with, most people clearly understand what I mean if I say something like 'If the weekly candle closes above 8100...' but the significance of a weekly candle close above 8100 has nothing or very little to do with the fact that a market traded above 8100 at 00:00 UTC on a Monday. The distinction I use for price action with regards to candle closes is nothing more than the inclination for a market to trade near a certain price range and not instantly get rejected. . In our example above, it is very different if price has been trading at 7600 on Sunday at 10 p.m. and proceeds to climb to 8100 by 00:00 a.m. on Monday, than if price has been trading at 7900-8100 for a whole weekend and closes above 8100. There is a lot of value in understanding how a candle opened or closed and to not assume all candles are created equally if their OHLC numbers are identical. This is why a trading strategy with multiple time frames is a must when using bars/candles to read price action. Wish I had more time to go over a couple of examples, but the concept is very simple and I hope all of you understand the gist of the idea behind it.
XEducation
by coinselor
Tutorial on Advanced Swing Trading Entry & Exit PointsSteps to Swing Trading: 1. Find a trend: uptrend in bull price action chart, or downtrend in bear price action chart. 2. Analyze the trend to find the best entry points on that trend. That means finding the HL higher low points in and bull market, and LH lower high points in a bear market. Look for HLs in a bull market, and LHs for a bear market. 3. Confirm the best entry points in the trend with supporting candlestick patterns. Find a good bullish candlestick pattern on the HLs of a bullish market, and good bearish candlestick patterns for LHs of a bear market. These include pin bar patterns, engulfing candlestick patterns, inside bar candlestick patterns. They confirm a reversal As a general rule of thumb, entry points above 30 Day and 50 Day EMA lines provide more confirmation of the direction of the trend. To be most successful, remember to never go short in the bullish/uptrend market, and never go long in a bearish/downtrend market. This manages risk. Uptrends: Wait until an uptrend is confirmed before investing: uptrends are confirmed by two higher highs, with two higher lows on the chart. To elaborate, that means if we have two back-to-back HHs and HLs, that indicates the uptrend is confirmed and it's time to look for strong bullish candle or bullish reversal candlestick patterns at the third HL. Downtrends: To confirm downtrends, wait until two lower highs and two lower lows have formed in the price action chart. If you find two recurrenct LHs and LLs in a chart, then this price action setup marks that a new downtrend has been confirmed and the bear has begun. Start selling/short trading from LH 3 IF you find a strong bearish candle pattern or a strong bearish reversal candlestick pattern at the lower high level 3. Conclusion: This is the main process for swing trading strategy. Practice this process on historical charts to improve your understanding and mastery of the strategy, then manage your risk investing.
BITSTAMP:BTCUSDEducation
by Grandmaster76
KO Earnings: Dark Pool Rotation vs. BuybacksCoca Cola has been in a major buyback mode for its stock in an attempt to move the price up. The buybacks have faced heavier than normal Dark Pool rotation (large lot selling) against the automated buyback orders. Recently the buybacks have increased, creating some interesting anomalies in the large lot indicators as well as in price patterns. Retail traders, who trade this stock heavily, are often fooled by buyback candlestick patterns. Institutional holdings has declined, which is unusual during a buyback mode.
NYSE:KOEducation
by MarthaStokesCMT-TechniTrader
Morning Star Candlestick Pattern EducationMorning star candlestick patterns can be strong reversal signs, but need to be traded safely as they are not always reliable, try to only use them at areas that are likely to be a “bottom” of a trend. They consist of the first candle being bearish and large bodied, the second candle being a doji, usually tiny with a two distinct wicks and the 3rd candle being bullish, large bodied and surpassing 50% of the value of the first candle. A shooting star is the oppiosite of a Morning Star. I will be posting excerpts from a new in depth crypto trading guide every week on my discord: www.invite.gg
COINBASE:BTCUSDEducation
by Wolf_Of_Amsterdam
How to trade reversal patterns & Fib extensions / Elliott wavesWhen you see a morning star pattern (you can use candle software to find such), usually it marks the start of Elliott wave 1 to 5 sequence, you enter at the end of the first correction wave (retrace into the body of morning star pattern). When wave 2 is completed, we plot Fibonacci retracements from the tail of Morning star and you will see how perfectly price reaches Fib extension 161.8 (1.336), the end of Elliott wave 5, doing pullbacks at FE 61.8 and FE 100 (1.326). Metatrader´s Fib extension has extensions of 61.8, 100 and 161.8 but thats enough. Now price is doing ABC correction pattern as you see.
Education
by ICFX
1
Price Action Lesson 6: Shooting Star Candlestick Pattern Def.Shooting Star Candlestick Pattern Definition: When the price highly increases during a day, but decreases to what it was at the beginning of the day or even lower, a considerable bearish retracement is occurred. The candlestick of this price action in the daily time frame is a Shooting Star. The Shooting Star in the daily time frame is a very strong signal for the possibility of more decrease in price during next days. Example: The chart shows the price of Gold in the time frame of 30 minutes. On Sep 08, 2017 the price significantly increased from 1348.80 to 1357.53, then it decreased more, and at the end of the day to it was closed at 1346.07. The corresponding Shooting Star candlestick of this price movement in the daily time frame is also drawn on the chart to better describe the concept.
FX_IDC:XAUUSDEducation
by ForecastCity
1
Price Action Lesson 7: Conditions of a Perfect Shooting StarConditions of a Perfect Shooting Star: Body is short. The height of the candlestick (the difference between high and low price) is tall enough and it's more than the Daily ATR(264). The taller the Candlestick is, the stronger the Shooting Star. The upper shadow (also known as upper wick or tail is the distance between the high price and the close or open price, whichever is higher) should be very tall, over than 75 percent of the Daily ATR(264) is better. The lower shadow (also called bottom wick or tail is the distance between the low price and the close or open price, whichever is lower) is nonexistent or very short. It should be less than 25 percent of the Daily ATR(264). The Shooting Star with the bearish body is stronger than the one with the bullish body. - The picture shows a perfect Shooting Star candlestick . As seen, the height of the candlestick is tall, but the body is very short. Also, the upper shadow is very tall and the lower shadow is very short. The close price is lower than open price, therefore the body of this Shooting Star is bearish , and the strength is very high.
COINBASE:ETHUSDEducation
by ForecastCity
7
Price Action Lesson 4: Weak hammerWeak hammer: For having successful and steady transactions, Simple detection of market patterns is not enough. But with a deeper look, we should calculate the success possibility of each pattern. One of the determining power Parameters of hammer stick is about Descending or ascending that the body can be. Thus, if the body of hammer is ascending, Possibility of starting an ascendant wave is very high. The opening price of the day, is very important. This price - is the previous day's closing price, in fact it is the price that they had a war at in previous day where buyers and sellers come to equilibrium. So on the day that the Hammer is forming. If buyers can raise prices to the point of closing price of yesterday, and by the end of the day, they keep the price at the top of it, they will be the winners of the war. If we can raise the price above yesterday's closing price, they are not conclusive winners of today’s war, and this war will continue for the next few days. Thus, if the body of hammer is ascending, Possibility of the beginning Ascending wave is very high. But if the body of hammer is Descending, Possibility of the beginning Ascending wave is less. In this case, it is said a weak hammer has made. - The picture shows a hammer candlestick with descending body. . As what can be seen, candle’s height is tall, but it has very short body height. Also Lower Shadow is long, and the upper shadow is very short. . As regards the Closing Price of market is under its Opening Price, therefore the body of this hammer is Descending, and the power is very low. Possibility of the beginning ascending wave is less.
Education
by ForecastCity
14
Price Action Lesson 3: Hammer, The first sign of beginning ...Hammer, The first sign of the beginning Ascending wave: Hammer shows that the war between buyers and sellers, at the beginning of the day sellers could create significant reduction in price, with their high investments. But when the price had come to the lowest extent of it, many of buyers have entered with more investments than sellers. And again they could increase the price close to what it was at the beginning of the day or may even more. And at the war that was between buyers and sellers, the buyers have been the winners of the day, and the market is largely in control of them. Thus, the possibility of further price increases in the coming days is enormous. example: picture Shows, currency pair of EUR/USD -0.31% in a 30 minutes time frame. At the beginning, by increasing investments of sellers, the price became to 1.16886 But in this range with the arrival of large buyers to the market and overcome to turnover of shopping on sales transactions, the price increased again. Sellers could increase the selling price due to the amount of demand from buyers. The starting price is may be at 1.17495 but it increased by the end of the day to 1.17578. As what can be seen, after forming Hammer , an Ascending wave started and the Price have increased more.
Education
by ForecastCity
22
Price Action Lesson 2: Conditions of a Perfect Hammer Conditions of a Perfect Hammer: . Body height must be short. . The total height of the candle must be taller than the Daily ATR-264. The taller the candle is, the stronger the Hammer is. . The lower shadow’s length should be very tall. It is better to be over 75 percent of the Daily ATR-264. . The upper shadow does not exist, or if it does, it is very small. It shouldn't be more than 25 percent of the Daily ATR-264. . The hammer that has an ascending body is stronger than the one which has a descending body.
Education
by ForecastCity
13
Hammer Candlestick Pattern DefinitionHammer Candle Stick Definition If there was a large drop in price in the middle of the day, but before the day ended it increased to what it was at the beginning of the day and even more, a significant upward return occurred. The candlestick of this change (move) will be a Hammer in a daily time frame. A Hammer formation on the daily time frame is a very strong indication for probability of increasing price in next days. Example: The picture shows currency pair of EUR/USD in a 30 minute time frame. On Ausust 09, 2017 the price significantly decreased from 1.17495 to 1.16886 or even lower. But after that, it increased rapidly at the end of the day to 1.17578 and then closed. Also in this picture - for better understanding - the Hammer Candlestick in the daily time frame - in the result of changes in a day - is drawn.
Education
by ForecastCity
8