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Candlestick Analysis

Bullish Candlestick's Patterns You Must Know 🗒 Just browsing through my analysis means a lot to me. ➡️ Please follow the analysis very carefully and every detail of the chart means a lot. And always entry depends on many reasons carefully studied Always enter into deals when there are more than 5 reasons combined ------------ Bullish Exhaustion Bar ➕A bullish exhaustion bar ---------- opens with a gap down. Then, it works its way up to close near its top In This case, the gap remains unfilled. In addition, high volume should occur with the exhaustion bar. What does it mean? Its name explains it all. It represents exhaustion and a failed lastditch attempt. After the bears are exhausted, the bulls will takeover and the market will rise. After the bulls are exhausted, the bears will take the market down. How do we trade it? 1. Buy above a bullish exhaustion bar ---------------------- ➕Bullish Pin Bar ----- It looks like the nose of Pinocchio. It has a long and obvious tail. For bullish pin bars, the lower tail take up most of the bar. For bearish pin bars, it is the upper tail that dominates. What does it mean? Paraphrasing Martin Pring, the pin bar lies like Pinocchio. With its long tail, a pin bar breaks a support or resistance momentarily to trick traders into entering the wrong direction. These traders are trapped, and there is always money to be made when you find trapped traders. ------------- ➕Bullish Reversal Bar --------- A bullish reversal bar ------ pattern goes below the low of the previousbar before closing higher. What does it mean? For the bullish pattern, the market found support below the low of the previous bar. Not only that, the support was strong enough topush the bar to close higher than the previous bar. This is the first sign of a possible bullish reversal. How do we trade it? 1. Buy above the bullish reversal bar in a uptrend --------------- ➕ Bullish Two-Bar Reversal ----------- The two-bar reversal pattern ------------- is made up of two strong bars closing in opposite direction. The bullish variant consists of a strong bearish bar followed by a bullish bar. Reverse the order to get its bearish counterpart. ------------- What does it mean? Every reversal pattern works on the same premise. A clear rejection of a down thrust is a bullish reversal, and a clear rejection of an up thrust is a bearish reversal. In this case, the first bar represents the first thrust, and the second bar represents its rejection. How do we trade it? 1. For bullish reversals, buy above the highest point of the twobar pattern -------- ➕ Key Reversal Bar ------- A key reversal bar --------- is a specific instance of a reversal bar that shows clearer signs of a reversal. A bullish key reversal bar opens below the low of the previous bar and closes above its high. By definition, key reversal bars open with a price gap. As price gaps within intraday time-frames are rare, most key reversal bars are found in the daily and above time frames. How do we trade it? ----------- 1. Buy above a bullish key reversal bar (If uncertain, wait for price to close above it before buying.) ----------- ➕Bullish 3 Bar's Reversal ------ In sequence, the three bars of the bullish pattern are: ----------- 1. A bearish bar 2. A bar has a lower high and lower low 3. A bullish bar with a higher low and closes above the high of the second bar What does it mean? -------------- A three-bar reversal pattern shows a turning point. Compared to the other reversal patterns, the three-bar reversal pattern is the most 10 Price Action Bar Patterns You Must Know conservative one as it extends over three bars, using the third bar to confirm that the market has changed its direction. How do we trade it? 1. Buy above the last bar of the bullish pattern
Editors' picks
Education
by GoldenEngine
66
📖 Japanese candlestick charts. Part 1We are beginning a new theme “Trading strategy’s most important technical analysis tools”. Today we are going to tell you about the most important things in trading, candlesticks! 📌Japanese candlestick charts were developed in the 17th-18th centuries by the Japanese rice traders. They were introduced to trading by Steve Nison in the 20th century. It's a simple, but very important tool for technical analysis, as these candlesticks contain different information about the market. I guess that everyone in this channel already knows how to read candlesticks, so we are going to talk about their usage. ⚡️First — its form, this shows market participants’ state and mood. It could show their doubts/balance (doji) or trend exhaustion (graph looks like a hammer or a falling star). There are only a few main models, and we are going to talk about them in the future. However, you can start learning about them yourself by saving the screenshot below. ⚡️Candlesticks show reversals and it is what we need in trading. By trading reversals you are catching the trend, it could be short or long. However, you will be able to understand when the trend is exhausting and you will be able to leave trade when there is a reversal. In addition to the presence of the reversal pattern itself, the preceding trend is important, you have to have at least 3 candles. If there isn’t a clear trend, then there is no trade. Additionally, we are looking at the candlesticks’ volumes and how trading continues after the last reversal pattern. We are entering position not on the reversal candlesticks, but on the following ones after the trade (or candlestick above/below fixation, depending on a situation)! Reversal setup is a needed factor, but it's not enough to enter a trade. 📌 And these are not all of the necessary conditions for implementation! You have to understand that you are getting rid of risky positions that not only will give you headache but could also result in losses. You should only trade in situations where you are confident in, the confidence is achieved by fulfilling very certain conditions, of which only few people in the market know about. Continued in part 2.
Editors' picks
Education
by I.T.Analytics
24
📖 Japanese candlestick charts. Part 2Hello, we continue to study candlesticks. ⚡️ Maximal/minimal 🔶 For this it is desirable for reversal candlestick to have its own high/low. In addition to the convenience of placing stop-loss on them, its own minimum/maximum also increases the chances for a long term trend after such reversal. The reason for this is in the market reflectivity, all the patterns don’t just work on their own, but they also contain market’s psychology and the methodology of huge amounts of smart money. When there is a decrease in demand and supply, smart money form the least resistant trend, and they trade! 🔶 You have probably noticed a few times that the figure’s/pattern’s price could move into the opposite direction that you expected. There are reasons for that, patterns have the necessary to complete conditions, simply of which not many know about. Even if all the necessary conditions are complete while forming a pattern, there is always a chance that the price will go opposite direction due to a number of reasons, of which we are going to talk about later. Now, you should note that its important to analyse candlesticks, as they help you to minimize risk while trading patterns. 🔶 Even though candlesticks look simple, they are a solid foundation for successful trading. They help you to find the optimal points to enter and exit trading in any patterns or whether you are trading using levels, or even if you are witnessing “third Elliott wave”... This is just a small bit of information about such a simple tool called Japanese candlesticks. 📌 Hint: if a trend is moving into a higher timeframe, you should also move to the same timeframe and start searching for reversal candlestick models at a long distance. This gives you the opportunity to trade for the entire trend duration. ⚡️ Harami 🔶 "Uptake", "Hammer" and "Cloud Silver Lining" models are common reversal patterns. There are many more forms in candlestick analysis that indicate an forthcoming reversal. One of them is the "Harami" pattern: the first candlestick is large, and the second one is small, it may be a "Spinning Top" or a "Doji", but in any case, the figure of the second candlestick is inside the first one's figure. They appear both at the top of the market and at the bottom. 🔶 The peculiarity of the "Harami" model is the uncertainty of the market at the time of its appearance. Therefore, it is recommended to wait for confirmation. 📌 The following candlestick of the corresponding color can act as confirmation: green for a bullish reversal, and red for a bearish one.
Education
by I.T.Analytics
3 of 3 Candlestick Patterns That Pinpoint ReversalsBullish Hammer Candlestick These candles are easy to spot and they generally have taller wicks than their bodies, resembling a hammer's handle and head. They tend to close without (or with very little) upper wicks. Here's what a bullish hammer candlestick is telling us: Price opened near the highs of the candle and although sellers initially succeeded at pushing price lower, they lost the final battle when buyers tipped the scales in their favor again by closing price higher than the opening price.
COINBASE:BTCUSDEducation
by Tradingstrategyguides
2 of 3 Candlestick Patterns That Pinpoint ReversalsBearish Hammer Candlestick (AKA Inverted Hammer) These bearish formations are simply upside down hammers, and are also known as inverted hammers. Here's what a bearish hammer candlestick is telling us: Price opened near the lows of the candle, and although buyers initially succeeded at pushing price higher, they lost the final battle when sellers tipped the scales in their favor again by closing price lower than the opening price.
Education
by Tradingstrategyguides
GBPNZD 15M US SESSION SCALP SHORT TRADETradingstrategyguides EDUCATION GBPNZD 15M US SESSION SHORT SCALP 56 PIPS British Pound / New Zealand Dollar (FX:GBPNZD) Tradingstrategyguides Trend Analysis Chart Patterns Technical Indicators mpattern Inverted Hammer swinghigh pinhammer stophunt engulfment fibarclevels tradingstrategyguides 15m 1st Chart 7 AM EDT - Bearish Reversal M Pattern developed - Trade Bias Short 2nd Chart 6:45 am EDT - Inverted Bearish Green Body Hammer created swing high 7 am EDT - 2nd candle is a High Bull candle. High Bull candle is highest green candle body that closed. We are going to use the bearish wick low of the High Bull Candle as the level for the engulfment breakout to take place. 1st engulfment is the 7:15 am candle body engulfs the 7am candle. The breakout 2nd engulfment candle is the 7:45 am candle. 7:45 am EDT candle is a Pin Hammer candlestick . The bullish wick of this candle is a stop hunt into the high of the inverted Bullish Hammer . This is a stop hunt for those traders who entered a short trade from the inverted hammer entry bullish signal to hit their breakeven stop level. 7:45 am EDT - ENTRY - Short Stop Order made at High Bull candles low @1.9115 . Stop Loss above inverted hammer's high. Take Profit found using the Fib arc indicator adjusting levels every 100% up 600% level for Take Profit levels. Measured Move levels are calculated from a fib arc indicator
Education
by Tradingstrategyguides
3
Hextar Global..Hidden base act as powerful areaHidden base is actually a rally base rally in Technical Analysis and always overlook by many traders. A simple way how to find this area 1. Look to the left and find most obvious support/resistant. A shadow or body is fine, both can be use as long as your line touching the candle body or shadow. 2. Find the breakout Candlestick. Go to lower time frame one by one..W> D>H4>H1>M30>M15>M5 3. In line with the S R, Mark area from high to low ( shadow to shadow) of rally base rally pattern. 4. Find decision point area. This technique have higher chance of getting High reward vs your risk. Chance of sniper entry also got higher. Price always react for the first time back/1st retest/ 1st entry. For 2nd retest/ 2nd entry, price usually react in decision point area which below from the low candlestick 1st retest
MYX:HEXTAREducation
by HafiqAiman
KEY price action candlestick THAT ACTUALLY WORKS!Some key price action candlesticks we look for when entering a trade. Pinbars: Sign for weakness/rejection, in the correct context, it can be a powerful trend reversal candle Inside Bar: Short retracements / losing momentum, in the correct context, it can show whether a trend is continuing Engulf Candle: opposite from the inside bar, this usually shows strength in either the bears/bulls. With the correct context, it can show signs of reversal too Marubozu: 'Power' Candle, can be shown with or without a wick, Normally found in trend continuation, a big spike with a bias towards one side of the market. With proper and valid entry timing, it can be a good signal to ride the trend. Doji: Exhaustion candle, bulls & bears fought for position, can be found in high volatility market, when a doji is formed, it is not recommended to enter a trade..
OANDA:XAUUSDEducation
by bullstoyourbears
3
BTCUSD how to identify institutional activity (reference)Using NOV 2018 as an example, note the volume. As price was falling it was met with very large buying. Enough to prevent the price from falling below 3k ish. It took about another 6 months of absorption before the supply dried up for a clear path for mark up. But just wanted to point out what stopping action looked like. If you were to invert the chart, the inverse would apply. Look up Wyckoff price cycle/ accumulation and you will see how this particular example follows the schematics. Practice*
COINBASE:BTCUSDEducation
by dee718
Forex Price Action AnalysisHere we have Really good Setup and price also holding Very well 1) we have very big Wick (shadow) Candle this is the alert time in any trade. 2) we have doji which is for reversal (not all the time) but Volume is good 3) we made bullish candle and bouncing from Support support is Solid. so when we find the good Support we are ready to buy the retest as always so here we are buying the retest with stop loss below Support so here we got really decent profit with very small stop loss. and good gain
Education
by akashinvestor
CRYPTO INVERTED HAMMER/SHOOTING STAR STRATEGIES This is the Shooting Star version of the strategy. Inverted Hammer just opposite. Step #1: Attach the Chaikin Money Flow Indicator on your Preferred Time Frame Start first by preparing your charts ready for the battle. Simply attach the Chaikin Money Flow indicator on your favorite time frame. This is the only additional technical tool we’re going to use to confirm the validity of the bearish shooting star pattern. Using the CMF indicator, we accomplish one major thing. The validity of the bearish shooting star will be confirmed or invalidate instantly as soon as the bearish inverted hammer develops on our Bitcoin candlestick chart. This means that the price won’t move any further from the ideal entry price. Step #2: The Shooting Star Candle should come after a strong bullish trend The location, or where the shooting star candlestick develops, matters a lot. This whole ingredient is what makes the bearish shooting star candle performs with such a high degree of accuracy. We need a strong uptrend that has two important features: The first part of the trend is a slow and steady move to the upside The last part of the uptrend, prior to the shooting star candle, needs to be more volatile. Basically, we’re looking for a full-blown market top where the bulls are exhausted and reach a climax point. Step #3: The CMF indicator must be below the 0 lines once the bearish shooting star candle develops Chaikin Money Flow is a great tool to read and measure institutional accumulation-distribution activity in any market. Basically, a CMF reading below the zero line shows that the sellers have the upper hand and they took control of the market. Notice that the bearish shooting star spotted satisfies all the requirements of a bearish inverted hammer. The shadows are at least two times longer than the body, small body, and very little lower shadow. This candle would have been more powerful if the closing price is below the opening price. But it’s still a good pattern to trade due to all the other features. Now, it’s time to highlight how to find the right entry point for bearish shooting star candlestick. Step #4: Sell once we break the low of the Shooting Star Candle Simply place a limit sell order below the low of the shooting star. Nothing complicated about our entry strategy. It’s in line with the textbook rule. Step #5: Hide SL above the high of the Shooting Star Candle. Simply hide your protective SL above the high of the shooting star pattern. You can add a buffer of a few pips if you wish to protect against possible false breakouts. The full-blown top creates the necessary space where the bears would find no level of support to stop the drop. The last stage of a trend has been always more volatile. When combined with the reversal shooting star pattern, it makes for a killer trading strategy. Step #6: TP when we get inside the slow part of the prevailing trend. In this regard when the price reaches the portion where the prevailing uptrend was moving slow, we take profits. That’s where the price will find some hostility to advance further on the downside. We want to clear out our position when that happens. Conclusion – Best Shooting Star Strategy The best shooting star strategy is one of the most reliable and efficient ways to trade trend reversals. This single candlestick pattern can offer you one of the most attractive risks to reward ratios. You can risk between 10 and 30 pips and look to gain between 200 and 300 pips which gives you a profit of 20x or 30x the risk taken. Take that into consideration next time when you’re able to find a shooting star candle that satisfies all the rules outlined in this trading strategy guide. A lot of traders will warn you against reversal trading. However, finding tops in the market and trading reversals can be done successfully if you have a proven methodology like our shooting star candle strategy.
COINBASE:ETHUSDEducation
by Tradingstrategyguides
1