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master candle strategy explained🔸The concept of the Master Candle is well known in trading. There are different ways of looking at this trading strategy, but in its simplest form, a Master Candle is a candle which contains the highs and lows of at least the next four candles after it. 🔸Can be applied to forex, gold , oil , crypto, stocks and indices. 🔸simple rules to enter the trade based on the breakout of high/low. 🔸Master candle setup is confirmed once 4 or 5 candles are traded inside the range defined by master candle high and low. 🔸The Master Candle trading strategy provides clear pattern and also helps in the identification of breakout points. 🔸You should not try to trade near a Support / Resistance (SR) zone. 🔸There should be no trade against a Support / Resistance zone that is closer than the Master Candle’s height. 🔸Only take a trade when a candle breaks the Master Candle’s High or Low. 🔸It is recommended to always target the Master Candle size when exiting the trade. So, for example, if the Master Candle size is 80 pips, consider setting your profit target at 80 pips. 🔸Place your Stop-Loss order in the opposite direction of the entry at the other end of the Master Candle. So, in a long trade, the stop should be at the Master Candle’s low, while in a short trade the stop should be at the Master Candle’s high.
OANDA:XAUUSDEducation
by ProjectSyndicate
41
What is Candlestick Pattern?Candlestick patterns are a charting technique used by traders to analyze the price movement of financial instruments. They originated in Japan in the 18th century and were used to track the price of rice. The technique was later adapted for trading other assets like stocks, currencies, commodities, and cryptocurrency. Candlestick patterns are an important tool used by traders and investors to analyze the price movement of financial assets. A candlestick is a visual representation of the price movement of an asset during a specific time period. Each candlestick represents the opening, closing, high, and low prices of the asset during the period. The shape and color of the candlestick provide important information about the price movement of the asset. Candlestick patterns are formed by the combination of one or more candlesticks, and they can indicate a potential trend reversal, continuation, or indecision in the market. Some candlestick patterns are based on just one candlestick, while others are based on combinations of two or more candlesticks. A bearish candle (red candle) represents a period of trading where the closing price is lower than the opening price. This indicates that sellers were able to push the price down, indicating a negative sentiment in the market. The bearish candle has a long body and a small lower wick, indicating that sellers were in control for most of the trading period. A bullish candle (green candle) represents a period of trading where the closing price is higher than the opening price. This indicates that buyers were able to push the price up, indicating a positive sentiment in the market. The bullish candle has a long body and a small upper wick, indicating that buyers were in control for most of the trading period. Both bullish and bearish candles can come in various sizes and shapes, indicating different levels of buying or selling pressure. For example, a long bullish candle with no or a very small upper shadow could indicate strong buying pressure, while a short bullish candle with a long upper wick could indicate weaker buying pressure. Different types of candlesticks Pattern: 1. Bullish Candlestick Pattern - Hammer - Inverse Hammer - Bullish Harami - Bullish Engulfing - Morning Star - Three white soldiers 2. Bearish Candlestick Pattern - Shooting star - Hanging man - Bearish Harami - Bearish Engulfing - Evening star - Three black crows Doji: Gravestone Doji Dragonfly Doji Long-legged Doji ( Spinning top ) In the upcoming post, we will elaborate on the various types of candlesticks and how to use them. Thanks Hexa
BITSTAMP:BTCUSDEducation
by HexaTrades
4
Gongmyeong's Knowledge Sharing - Step 5 < Let's just watch it for three minutes! Zhuge Gongmyeong's Knowledge Sharing > Step 5. Types of bearish candles Let's talk about the types of bullish candles yesterday and the types of bearish candles today. Likewise, let's classify the types based on the shape. First, the hanging candle. It's a candle that went down to a low price and then went up a little. It's a bearish candle with a tail at the bottom. The shorter the torso and longer the tail, the more likely the next movement is to rise. Next is 'meteoric candle'. It's a candle that goes up once and then rolls down all the gains and then goes down further. Because both the torso and tail contain the drop, the longer the torso and tail, the greater the influence. If these cans appear at the high point, they are likely to turn downward. Lastly, "long stick - bearish candle". The properties are similar except for the pole bullish candle and the bearish/bullish. It's a light stick candle with only the body without a tail up and down. In general, there is a very strong downward trend in the process of these cans appearing, and the longer the torso, the more the amount of decline, so it exerts a greater influence. Today, we've looked at the typical types of bearish candles. Likewise, when you look at the shape of the candle on the actual chart, let's review it so that the characteristics of the candle come to mind!
Education
by Gongmyeong
Gongmyeong's Knowledge Sharing - Step 4 < Let's just watch it for three minutes! Gongmyeong's Knowledge Sharing > Step 4. Types of bullish candles We've looked at the composition of the candles in the previous sections. Today, we're going to classify the types of bullish candles based on their shapes. First, it's a hammer-type candle. It's a candle that went down to low prices and then went up. The shape has a tail only on the bottom. If these candles came out of the low point, you can expect a trend shift to an upward trend. The shorter the body and the longer the tail, the more reliable the candle is. Next is the reverse hammer type candle. Although it is a bullish candle, it is a candle that is bent at the end and left the upper tail. The shorter the torso and longer the tail, the higher the probability that the next move will be a drop. Conversely, the longer the torso and shorter the tail, the stronger the upward force, so the next is the higher the probability of ascending. The length of the tail and body is important. Lastly, it's "a long-stick candle". The shape itself is simple, but it's a beekeeping candle with only the body without the top and bottom tails. In general, there's a very strong upward trend in the process of these cans appearing, and the longer the torso, the greater the amount of upward movement, so it exerts a greater influence. Today, we've looked at a typical type of bullish candle, and the shape of the candle is very important because it represents the power to move up and down. When you look at the shape of the candle on the actual chart, let's review it so that the characteristics of the candle come to mind!
Education
by Gongmyeong
Gongmyeong's Knowledge Sharing - Step 2 < Let's just watch it for three minutes! Zhuge Gongmyeong's Knowledge Sharing > We learned the basic theory about the composition of candles yesterday, and today we're going to summarize the names of the candles while looking at the actual candles. You can think of it as a review of yesterday's content! First, let's look at the left candle. The left candle is green, so it's bullish candle. - Bullish candle is a candle with a higher closing price than the starting price, which means that the price was higher at the end than at the beginning of the candle formation. The starting price and the closing price can be confusing, so let's find out the easiest high price and low price first. The high price is the highest price in the candle. They don't care about bullish or bearish candle. The low price is the lowest price in the candle, as opposed to the high price. In these candle, the high price is around 22315 and the low price is around 22250. In the bullish candle, the 'starting price' is 'below' the closing price. So the red part is the beginning of the candle. It looks like 22265. The closing price is the blue part located on the opposite side. It looks like it's about 22300. This time, let's distinguish between the body and the tail. *If you divide the bullish candle into tail and body, it can be divided into three categories: lower tail, body, and upper tail. Lower tail (low price ~ market price) Body (shiga to closing price) Upper tail (Closing price ~ expensive) We found low prices, starting prices, closing prices, and high prices earlier, so you can replace them as they are. Lower tail (22250 to 22265) Body (22265 to 22300) Upper tail (22300 to 22315) It's not hard, right? In fact, the tail, the body, the top price, and the low price can be intuitively distinguished, so it is important to understand to the extent that "Closing price" and "Starting price" are not confused. The candle on the right is a bar. Check it out and let's understand why it's like that!
Education
by Gongmyeong
Let's just watch it for a minute! Gongmyeong's Knowledge Sharing < Let's just watch it for a minute! Gongmyeong's Knowledge Sharing > Today, we're going to talk about the most basic element that makes up the chart, the candle. This is very important because you need to have a better understanding of the candles to flexibly access more in-depth theories. As basic as it is, it's not hard! Today, we will talk about the composition and its name among the candles. First, candles are made up of Bullish candle and Bearish candle. - Bullish candle : Candles with a higher closing price than the starting price - Bearish candle : Candles with a higher starting price than the closing price Here, the starting price and the closing price are: - Starting price: the price at which the candle started - Closing Price: Candle Ended Price It's not that hard, right? The ends and ends of the Icer Candles are called low-priced and high-priced. - High-priced : Highest price in the candle - Low-priced : Lowest price in the candle So we looked into four important parts: starting price, closing price, high price, and low price. Finally, let's look at the concept of tail and body. The tail can be classified into 'upper tail' and 'bottom tail'. - Upper tail: The thin part above the candle. - Bottom tail: A thin part that forms under the candle. The body is the whole part except for the tails! The criteria for dividing the tail and body are 'Closing price' and 'Strating price'. This part becomes the tail, and , this part becomes the body! Today we talked about the components of candles. Let's understand the names and components through today's content and learn more about the candles next time! See you tomorrow!
by Gongmyeong
📊 Candlestick CheatsheetCandlestick charts are commonly used in trading to analyze market trends and make trading decisions. Candlesticks can be categorized as bullish or bearish, depending on whether the price has increased or decreased over a given period. It is important to note that while candlestick patterns can be useful in predicting market movements, they should not be used in isolation, and other indicators and analysis should also be considered. It is also important to have a clear understanding of the market and its underlying fundamentals before making any trading decisions. 🔹 Rails The rails pattern is a two-candlestick pattern that typically occurs during a downtrend. The first candle is a long red candle, followed by a long green candle that opens below the previous day's close but closes above it, creating a rail-like pattern. 🔹 Three White Soldiers The three white soldiers pattern is a bullish pattern that consists of three consecutive long green candles with small or no wicks. It typically occurs after a downtrend and suggests a reversal in the market's direction. 🔹 Three Black Crows The three black crows pattern is a bearish pattern that consists of three consecutive long red candles with small or no wicks. It typically occurs after an uptrend and suggests a reversal in the market's direction. 🔹 Mat Hold The mat hold pattern is a five-candlestick pattern that occurs during a bullish trend. It consists of a long green candle, followed by three small candles with lower highs and higher lows, and ending with another long green candle. 🔹 Pinbar The pinbar pattern is a single candlestick pattern that has a long tail or wick and a small body. The tail should be at least two times the length of the body. The pattern suggests a reversal in the market's direction. 🔹 Engulfing The engulfing pattern is a two-candlestick pattern that occurs when the second candle's body completely engulfs the previous candle's body. A bullish engulfing pattern occurs during a downtrend and suggests a reversal in the market's direction, while a bearish engulfing pattern occurs during an uptrend and suggests a reversal in the market's direction. 🔹 Morning Star The morning star pattern is a three-candlestick pattern that typically occurs after a downtrend. It consists of a long red candle, a small candle, and a long green candle, with the small candle gapping down from the previous day's close. The pattern suggests a reversal in the market's direction. 🔹 Evening Star The evening star pattern is the opposite of the morning star pattern and typically occurs after an uptrend. It consists of a long green candle, a small candle, and a long red candle, with the small candle gapping up from the previous day's close. The pattern suggests a reversal in the market's direction. 👤 @algobuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
5
AUDUSD possible long moveAN offers a really good long setup. The confluences are: 1.ascending channel 2.break and retest of S/R zone 3.daily AND weekly 50EMA laying on this level 4.61.8% fibs So we just need to see rejection candles at POI for entries. The only thing I don't like is the bearish momentum. The last daily candle is Marubozu candle, a very dominant candle sooo I'll be looking for STRONG 4H rejection candles or daily candle before jumping in longs! It could easily penetrate the zone, so be careful with entries.
Long
by JivkoXristov
2
The Russell Riddle: which chart is 2008? ($IWM W) For the answer, scroll down to the comment section. Two charts of $IWM weekly TF. One chart is current (as of 2/4/2023). The other is 2008 ,up to 4 candles before the 50% drop. Which one crashed 50%? The conundrum: why do we assess current price action as bullish, when a similar pattern resulted in the GFC in 2008? There are many possible answers, none of them wrong. The one that interests me is the possibility that our bias is more extreme when we have experienced (traded) the price history. In this case it means experiencing the climb from the October 2022 lows. The alternative is basing our bias on the price history in a chart but *without* experiencing the returns themselves. For example IWM's similar price action in 2008. Any difference in sentiment would be consistent with studies showing that decisions made from experience often diverge from those based on description.
AMEX:IWM
by gb50k
10
THE DRIVING FORCE IN THE CANDLEHello everybody! Today I want to discuss with you the movement hidden in the candle. This struggle inside the candle can tell us a lot about the future movement. Let's go! Fighting Inside each candle there is a serious struggle between buyers and sellers. Unfortunately, most traders not only do not notice, but also do not think about this struggle, and this is very valuable information. The price does not move just like that, you should understand this. Understanding which side is winning gives us information that helps us to keep a deal more confident or close it. Candles We all know that candles consist of a body and shadows. But not everyone understands how candles are formed. Let's take the first candle on the chart. This is a green full-bodied candle, without shadows. Looking at it, we understand that the strength of buyers is much higher than that of sellers. Specifically, there are no traces of sellers in this candle at all. This means that the uptrend is strong and there is no resistance from sellers, which means that if we have opened a long, we can confidently hold the position. The second candle already has shadows. These shadows are not large, but they indicate to us that sellers still managed the market for some time. From the first second, sellers pushed the price down, after which buyers forcefully overcame the situation in their favor - this is how the lower shadow was formed. The upper shadow is a movement created by sellers at the end of the candle formation. By such a candle, we can understand that the trend is still strong, although sellers are already pushing harder, but buyers are still winning quite confidently. We can still hold our position with sufficient confidence. The third candle has shadows even longer than the second. Does this mean that it's time to close a long position? No! Buyers are still strong, but sellers are not asleep either. We should be on the alert and wait for the next candle to show. The last fourth candle has very long shadows. There is no winner here anymore. There is an equal struggle going on here. And if there is no winner, it means that the price can go anywhere. If you look in the context of the previous candles, you can understand that buyers have lost strength, and sellers have become more confident. As we can see at the beginning of the candle formation, the sellers were able to lower the price significantly, after which the sellers got down to business. The price rose until the sellers pushed the price down again. In this candle, both buyers and sellers controlled the market for the same time. But we already understand that sellers are gaining momentum and a trend change is possible. The last candle is the well-known Doji, after which you will often observe a reversal. To better understand the movement, see the lower timeframes. There you will be able to look at the price under a microscope to understand who is still winning the market. Result Each candle contains information. A professional trader knows how to interpret each movement correctly. Maybe it's a correction? Or maybe it's a trend reversal? Using different timeframes, you can better understand who is dominating the market right now. Do not be lazy to analyze. Trade wisely! Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
11
HOW-TO: Adjust Default Parameters in MLC for Intraday TradingThe default parameters in Master/Last Candle (MLC) indicator are used for the standard timeframe 1D. Due to the difference in nature between bars of intraday timeframes and bars of day-and-above timeframes, some settings could be changed as below to make the indicator tailored to your case. • Increase default Max Volume Drop % from 25 to 30. We have seen a case in timeframe 30m that requires deeper volume drop than 25% to catch the big move. If you also find a big move that is not captured by MLC, try to adjust this measure as we do. If it is not your case, ignore this item and keeping the old default value as 25. Before After • Other parameters: Percentile % , Min Price Breakout % . Before After increasing Percentile % of Cx candles from 50 to 60 After increasing Min Price Breakout % from 20 to 25
Education
by SupersafeTrader
BTC BEARISH UPDATE TODAYThe bearish mood is perhaps understandable — the Ethereum Merge became a “sell the news” event, and along with macro triggers contributed to a fresh risk asset flight. Now, analysts are considering the chances of the downtrend staying in place at least until the Fed rate announcement passes. “BTC has chopped through the weekend, but there's always the potential for some volatility before the close The past week has seen tailwinds stack up for Bitcoin, leading to BTC price action falling in kind. BTC/USD lost over $2,000 in a single weekly candle, closing below $20,000 in what is the lowest such close since July, data from MY Youtube channel and trading view shows. Following the lowest weekly closing since July, Bitcoin (BTC) is facing yet another week of "big" macro announcements. Following days of losses in the wake of the most recent inflation data from the United States, BTC/USD has failed to recover, much like other altcoins and risk assets more broadly. The biggest cryptocurrency has yet to convert $20,000 to a solid support, and as the third week of September gets underway, there's a risk that it might do so once more. LIKE COMMENT AND SHARE FOR MORE, GOOD LUCK.
BITSTAMP:BTCUSDLong
by IPatrice