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Candlestick Analysis

Impact of yesterday’s Piercing Bar (Gold/USD 1D Chart)Impact of yesterday’s Piercing Bar (Gold/USD 1D Chart) 1. Price Action & Candlestick Pattern Analysis • The Piercing Line pattern on the daily chart is typically a bullish reversal signal, appearing after a downtrend. • However, today’s strong bearish follow-through (big red candle) invalidates the bullish intent of the pattern. This signals weakness in buyers’ strength. 2. Volume Spread Analysis (VSA) & Market Sentiment • Volume change is negative (-5.8%) with an increase in spread (74.95%), which means there’s a wider price range with less participation—suggesting weakness in demand. • Weak buying pressure across lower timeframes (1H, 4H, 8H) confirms that any bounce is likely to be short-lived. 3. Support & Resistance Zones • Key resistance at 2,956-2,972 (VWAP Upper Band & Liquidity High) acted as a rejection zone. • Key support at 2,888-2,891 (VWAP & VSA Liquidity Low). This is the level to watch for potential breakdown. 4. Momentum & Trend Analysis • The bearish momentum is strong across multiple timeframes (1H, 4H, 8H). • Price failed to hold above 2,932 VWAP, confirming further downside risk. 5. Order Flow & Market Strength • Negative Delta on footprint charts shows that sellers are dominating order flow. • Absorption at 2,899-2,900 suggests smart money is still distributing, not accumulating. Outlook & Trading Plan Bias: Bearish Outlook (Short Continuation Expected) • Entry: Sell Below 2,891 (Breakdown confirmation) • Stop Loss: 2,920 (Above rejection zone) • Take Profit 1: 2,863 (Liquidity Low) • Take Profit 2: 2,850-2,810 (VWAP Lower Band zones) • Confidence Level: 75% Justification for Trade: • The Piercing Line failed to reverse trend. • VWAP breakdown & weak volume structure confirm bearish continuation. • Momentum remains bearish, with weak demand signals. 👉 Conclusion: Gold remains bearish unless bulls reclaim 2,932-2,956. Short positions favored on breakdown.
FX:XAUUSDShort
by ICHIMOKUontheNILE
My Long-term BTC Idea March 2025 IMPORTANT MONTH FOR BITCOINBitcoin (BTC) Analysis - Not Financial Advice Disclaimer: This is not financial advice. These are real trend lines that you can draw yourself. While the current trend appears bearish, it might also present a good buying opportunity. Personally, I’ve struggled to trade Bitcoin successfully because emotions often get the better of me. For instance, I saw WIF at $0.02 but didn’t buy because I had also seen it at $0.00002. This example highlights that the current price isn’t always a reason to avoid buying. That said, I am currently holding off. Key Insights from the Chart: Current Price Action: BTC is around $86,845, correcting after hitting a high near $96,500. It appears to be testing a support line within an ascending channel. Trend Channels: The broader ascending channel (orange lines) suggests a long-term bullish trend. Mid-range correction lines and resistance levels (purple lines) highlight key price zones. Support and Resistance Levels: Key support: $69,077, $64,877, and $49,673. Major resistance: $109,087 (upper boundary of the orange channel). Buying Zones: Golden Buy Zone: Around $15,446, ideal for long-term entries during deep corrections. Perfect Buy Zone: Slightly above $29,166, a strong buy area if BTC pulls back. Bear Market Bottom: Approximately $40,147, a solid long-term support level. Market Outlook: Short-term: The correction might continue until BTC tests the mid-level purple line or the $73,721 level. A bounce from these levels could signal a continuation of the bullish trend, potentially pushing toward the $109,000 target. Long-term: If BTC stays within the ascending orange channel, a long-term target above $109,000 remains realistic. Risk Factors: A break below the correction line or falling outside the channel would indicate a bearish reversal. Personal Perspective: With the monthly candle closing in three days, BTC needs to push upward to form a wick, signaling bullish potential. If not, attention shifts to the weekly candle. Predicting the outcome is uncertain—this could either be a buying opportunity or a liquidation zone. Remember, back in 2021, BTC hit FWB:65K , then dropped to $30k, which turned out to be a great buying opportunity as it later surged to $67k. Altcoin Season: Some believe altcoin season is coming, but I think it already happened in 2024. Raydium (RAY) soared from $0.12 to $9, and coins like WIF and Fartcoin also surged. Unfortunately, many low-quality coins have been pumping, with less-experienced investors driving the trend. Conclusion: Despite the current bearish sentiment, this market phase might offer solid buying opportunities if key support levels hold. The next few days are crucial—watch how the monthly candle closes and monitor the weekly candle for further signals. As always, trade carefully, and don’t let emotions dictate your decisions.
by carl2k2
1
What happened? The gold price fell to 2935 againAfter waking up, I found that the gold price stopped at 2635. It was strange that the price was still at 2953 when I was about to rest, and no reporter told me that there was an emergency in the middle. Why did the gold price fall so fast? I looked at the market. After the Asian market opened, the gold price was technically corrected and the pressure from the upper high was strong, so it was adjusted back to repair the rebound affected by the news in the New York market. The news hardly mentioned how badly things were going. On the contrary. Maybe this time the negotiations were effective. The negotiations are being revised one after another. If the peace talks come to an end, the gold price may see a large adjustment. It is expected that a few hundred points will be very easy. At present, there is still a need for further technical corrections, leaving aside the impact of news. In the short term, the gold price still wants to break the upward channel. The bears are still very strong, and the current gold price is at 2936. The hourly candlestick chart shows that if the point near 2925 falls below, there is a high probability that it will fall below 2900 in the short term. If there is no entity breaking this position in the short term, it will still be mainly consolidating at a high of 2930-2950. Therefore, buying low and selling high is the main option. Before the general direction is decided, it is difficult to see a unilateral sharp rise or fall in the market, so keep this trading strategy and idea.
TVC:GOLD
by Confident_Step
Short gold after reboundWe were fortunate to have closed our long positions around the 2942 level, securing our profits in a timely manner. Although my initial plan was to start shorting gold on Thursday and Friday, the market unexpectedly began its decline earlier than anticipated, and I was unable to open short positions immediately. Given that gold’s downturn started ahead of schedule in this cycle, there is still room for price fluctuations. Therefore, we should avoid rushing into short positions, as gold may still see a short-term rebound to the 2930-2940 region. Gold has repeatedly faced resistance around the 2950-2955 zone and, following a period of sideways consolidation, finally broke downward—breaching the 2930-2925 support area. This suggests that there is still more downside potential, and the move could trigger panic selling. Consequently, I will be shifting my strategy to prioritize short positions after price rebounds. For upcoming short-term trades, we can consider initiating short positions in the 2935-2945 zone. Should gold resume its downward trajectory, it is likely to test the 2910-2900 support region.Bros, profits are the ultimate goal in trading. Accumulating profits is what changes lives and destinies. Choosing wisely is far more important than just working hard. If you want to replicate trade signals and earn stable profits, or if you want to deeply learn the correct trading logic and techniques, you can consider joining the channel at the bottom of this article!
OANDA:XAUUSDShort
by Trader_Marvin
7
Gold Bulls Beware: Is the Market Ready for a Pullback? Since the beginning of the year, Gold has closed every week in the green, with the last four weeks marking all-time highs. However, not even trees grow to the sky—let alone gold. 🌳✨ Looking at the posted chart, we can see that despite reaching ATHs and trading above 2900 over the past three weeks, the price has consistently reversed sharply from those highs. This suggests that a correction is becoming increasingly likely. Yesterday's ATH was only about 20 pips higher than the previous one, and once again, the price quickly reversed. At the time of writing, Gold is trading at 2936, hovering near a critical confluence support level. If the confluence support breaks, traders should anticipate a deeper correction, with an initial target around 2880 and a potential move toward 2850. I'm bearish on Gold, but I’m waiting for further confirmation before initiating sell trades. 📉🔍 Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
TRADENATION:XAUUSDShort
by Mihai_Iacob
6
Go long on gold in the 2930 area and make continuous profits!Dear Traders, In the past couple of days, gold has been volatile, swinging up and down. Have you made profits in your gold trades? Regardless, the fluctuations in gold were within my control, and I was able to secure considerable profits from my long gold positions. As I shared in my previous two articles, in short-term trading, we should avoid hastily chasing rallies in gold. However, once gold retraces to the 2940-2930 support region, we can actively consider going long. Yesterday, after gold retraced to around 2930, it reversed and rebounded, rising to approximately 2953. Today, after touching 2929, gold reversed again and is currently climbing back to around 2942. We've secured substantial profits from two consecutive long trades in gold. Bros, profits are the ultimate goal in trading. Accumulating profits is what changes lives and destinies. Choosing wisely is far more important than just working hard. If you want to replicate trade signals and earn stable profits, or if you want to deeply learn the correct trading logic and techniques, you can consider joining the channel at the bottom of this article!
OANDA:XAUUSDLong
by Trader_Marvin
GOLD (XAUUSD): Consolidation & Complete Indecision⚠️Gold is currently trading in a horizontal range on a 4-hour chart. There are two possible scenarios depending on which direction the breakout occurs. 📈In a bullish scenario, if the price breaks above the 2956 resistance and closes above it on a 4-hour chart, I anticipate a bullish movement towards the 2980 level. 📉In a bearish scenario, if the market breaks below the 2916 support and closes below it, a bearish movement towards the 2900 level is expected. As always, the breakout is the best confirmation, so it is recommended to wait patiently for that.
OANDA:XAUUSD
by linofx1
1
The Three Black Crows Pattern: Trading PrinciplesThe Three Black Crows Pattern: Trading Principles Various candlestick and chart patterns indicate potential market reversals. One such formation is the three black crows pattern that indicates a potential bearish reversal in the price of an asset. You can find three black crows stock, commodity, and forex patterns. This FXOpen article will help you understand how such a pattern is formed, explaining how it can be used to spot trading opportunities in the market and demonstrating live trading examples. What Are the Three Black Crows? The three black crows is a bearish candlestick pattern used in technical analysis to signal a potential reversal of an uptrend. It consists of three consecutive long bearish candlesticks that occur after a strong upward trend. The pattern suggests that the momentum has shifted from buyers to sellers, indicating that a downtrend could be about to begin. Key Characteristics: - Three Consecutive Bearish Candles: The pattern is composed of three long bearish candlesticks that open within the body of the previous candle and close near their lows. - Appears After an Uptrend: The pattern typically forms after a prolonged uptrend, signalling a potential shift in market sentiment. - Declining Price with Minimal Wicks: The candles should ideally have small upper and lower wicks, showing that the sellers controlled the market throughout the session. - Steady Decline: Each candlestick in the pattern opens higher than the previous candle’s close but then reverses to close lower. Psychological Interpretation The pattern reflects a growing bearish sentiment among traders. Each successive bearish candlestick suggests that sellers are taking over, and buying pressure is weakening. This gradual increase in selling activity is often interpreted as a sign that the market could be heading for a downturn. How Can You Trade the Three Black Crows Chart Pattern? The three black crows formation has general trading rules. They can be modified depending on the timeframe, market volatility, and risk tolerance. Entry Once the formation is confirmed with the third long red candle and additional indicators, traders enter a short position below its low. Take Profit The pattern doesn’t provide specific take-profit targets. Usually, traders use other technical indicators and strong support levels to determine a suitable take-profit point. Some traders set the take-profit order with regard to the risk-reward ratio, say 1:2 or 1:3. Stop Loss The theory states that a stop-loss order can be placed above the first candlestick’s high to potentially limit losses. Moreover, it should be based on the trader's risk tolerance and trading approach. Live Market Example The above example shows the formation of the three black crows’ pattern on a weekly chart of the EUR/USD pair. When the pattern formed, the relative strength index had just left the overbought zone, confirming a potential trend reversal. A trader could go short after the third long bearish candle at 1.42550 and place a stop loss near above the first pattern’s candle (at 1.51763). The profit target could be set at the next important support level of 1.23378. It took six months for the price to reach the target level. ​​Practical Trading Strategies Using the Three Black Crows Pattern Now, let’s look at two specific 3 black crows trading strategies. MACD Strategy The combination of the three black crows candlestick pattern and the MACD crossover offers traders a strong signal of a bearish reversal after a bullish movement. The three black crows formation suggests weakening bullish momentum, while the MACD crossover confirms the shift in momentum from buyers to sellers. Together, these indicators increase the likelihood of a sustained downtrend, offering an opportunity for traders to enter the market with greater confidence. Entry - Traders observe a bearish MACD crossover within a few candles of the three black crows, either just before, during, or just after. - Both conditions (pattern completion and MACD crossover) are typically met by the close of the third candle, signalling a potential opportunity for a sell trade. Stop Loss - Stop losses might be placed just beyond the swing point before the three black crows pattern to potentially protect against false signals. Take Profit - Traders often set take-profit targets at a risk-reward ratio, such as 1:2 or 1:3, to lock in potential returns. - Alternatively, profits might be taken at key support levels where the price may reverse. - Another option might be to exit the trade upon observing a bullish MACD crossover, signalling the end of the downtrend. HMA Strategy Using two hull moving averages (HMA), one set to 20 and the other to 50, provides traders with an extra filter to confirm that a downtrend is beginning following the three black crows pattern. The three black crows indicate a potential bearish reversal, but a cross of the 20-period HMA below the 50-period HMA helps confirm the strength of the downtrend. HMAs are used as they are more responsive to trend shifts than other moving averages. Entry - Traders look for a bearish crossover where the 20 HMA crosses below the 50 HMA within a few candles of the three black crows. - Both the pattern and the HMA crossover typically confirm the start of a downtrend, allowing traders to enter a short position. Stop Loss - Stop losses might be set just above the swing high before the pattern. - Alternatively, they might be placed above one of the HMAs, depending on the trader’s risk tolerance and desired level of protection. Take Profit - Take-profit targets might be based on a risk-reward ratio, such as 1:2 or 1:3. - Traders may also take profits at a known support level where price reversal is likely. - Another potential exit point is when the HMAs cross over again, signalling the end of the trend. Three Black Crows vs Three White Soldiers The three white soldiers candlestick pattern is the opposite of the three black crows. It is a bullish reversal setup that traders commonly use to identify the potential end of a prior downtrend and the start of an uptrend. It consists of three consecutive long bullish candlesticks with highs and lows higher than the previous ones and with little or no wicks. It suggests that the buyers have taken control of the market and that the price will likely continue rising. The candles together create a formation that resembles three soldiers marching in a bullish direction. This formation is usually considered a strong bullish signal when it appears after a prolonged downtrend, in contrast to the three black crows formation, which indicates a strong potential bearish reversal. Traders often use it as an indication to enter long positions, with a stop-loss order placed near the bottom of the pattern. Confirmation Tools Confirmation tools can help traders ensure that the 3 black crows candlestick pattern signals a true bearish reversal rather than a short-term pullback. Here are some key tools to consider when confirming the pattern: - Volume Increase: A spike in selling volume during the formation of the three black crows can confirm heightened pressure and a stronger likelihood of a trend reversal. - Momentum Indicators: Tools like the Relative Strength Index (RSI), MACD, or a Stochastic Oscillator can show a shift in momentum. An overbought RSI, a bearish MACD crossover, or bearish Stochastic divergence may reinforce the bearish signal. - Support Level Break: Watch for a break below a key support level after the three black crows form. This can further validate the downtrend, indicating that sellers are gaining control. - Bearish Candlestick Patterns: Additional bearish patterns, such as engulfing or dark cloud cover, emerging after the three black crows, can reinforce the likelihood of a sustained downtrend. - Moving Averages: A cross of a short-term MA below a long-term MA can offer further confirmation of a bearish reversal. Common Mistakes When Trading the Three Black Crows Pattern In 3 black crows trading, it's common to make several mistakes that may lead to poor results or false signals. Here are key pitfalls to watch out for: - Ignoring Volume: Failing to check for a rise in volume during the formation of the three black crows can lead to misinterpreting the pattern. Low volume may indicate weak selling pressure and an unreliable signal. - Trading Without Confirmation: Jumping into a trade as soon as the pattern forms without using additional confirmation tools like momentum indicators or support breaks can increase the risk of a false reversal. - Overlooking Market Context: The three crows candlestick pattern works in specific conditions. If the pattern appears in a sideways or range-bound market, it may not signal a true trend reversal, leading to misinterpretation. - Setting Tight Stop-Losses: Placing stop-loss orders too close to the first candlestick’s high can result in early exit due to market noise. Proper risk management with room for fluctuations is essential. - Neglecting Trend Strength: Ignoring the strength of the prior uptrend may lead to premature trades. The pattern is believed to be the most effective after a prolonged uptrend; using it in weak trends can result in false signals. Final Thoughts The three black crows pattern is a powerful bearish reversal signal that can help traders identify potential downtrends after a sustained uptrend. By understanding its formation, confirming the pattern with additional technical indicators, and implementing sound risk management strategies, traders can incorporate this pattern into their trading plans. However, as with any trading strategy, patience and proper confirmation are key to avoiding false signals. Once you have practised identifying the black crows, consider opening an FXOpen account to start your trading journey! FAQ What Do 3 Black Crows Mean in Trading? The 3 black crows’ meaning refers to a candlestick pattern signalling a bearish reversal. It consists of three consecutive long bearish candlesticks following an uptrend, indicating that sellers are taking control of the market. This pattern suggests a potential shift in momentum from bullish to bearish, meaning the price is likely to decline further as selling pressure increases. What Do Three Black Crows Indicate? The 3 black crows’ candlestick formation, after a prolonged uptrend, indicates a potential downside reversal. It means that sellers are taking control, and the price will likely trade downwards. What Is the Success Rate of the 3 Black Crows? The success rate of the three black crows pattern varies depending on market conditions, timeframe, and confirmation tools used. While it is generally considered a reliable bearish reversal signal, traders often use volume, momentum indicators, and support level breaks to confirm the pattern and improve success rates. What Is the Meaning of Identical Three Crows? The identical three crows is a variation of the traditional pattern. In this case, the three bearish candles open at the close of the previous candlestick, showing even stronger bearish pressure. This variation suggests that sellers are overwhelming buyers consistently, signalling an even more pronounced reversal. How Do You Trade Three Black Crows? To trade the 3 black crows pattern, traders wait for confirmation of a bearish reversal after the three consecutive down candles in an uptrend. They enter a short position once the pattern is completed and confirmed by additional indicators like increased volume or a break below support. They may place a stop-loss order above the high of the first candle and target key support levels below for profit-taking. Traders always manage risk carefully by using stop-losses and monitoring market conditions. Are Three Black Crows Bullish? No, the three black crows pattern is not bullish; it is a bearish candlestick pattern. It signals a potential reversal from an uptrend to a downtrend, indicating that selling pressure is starting to overwhelm buying pressure. Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
ASX 200 futures (SPI 200) stablising around 8200The ASX 200 futures market has fallen close to 5% from its all-time high, with 5 of the 7 candles since the top being bearish. However, the daily RSI (2) reached oversold on Friday, a bullish pinbar formed on Monday and a small bullish divergence is now forming on the daily and 1-hour chart. The pinbar low also found support at a weekly VPOC (volume point of control) and weekly S1 pivot. Given the selloff came in a relatively straight line, I cannot help but suspect at least a minor bounce is due. The near-term bias remains bullish while prices hold above last week’s low, and bulls could seek dips towards 8200 / 8191 VPOC area. 8300 and the weekly pivot point at 8345 could make viable upside targets for bulls.
ASX24:AP1!Long
by CityIndex
WTI crude oil shows the potential for a bounceThis is a bit of a scrappy chart, but I still see the potential for a cheeky bounce. WTI crude oil is trying to snap a 4-week losing streak, by stalling around a 50% retracement level. Last week's candle was an inverted hammer, and the previous two weeks have both closed above the 50% level. A bullish divergence formed on the daily RSI (2) ahead price action finding support at the 200-day SMA and 200-day EMA. From here, the bias remains bullish while prices hold above last week's low. Bulls could seek dips towards the 200-day MAs, with a near-term upside target of $72. A break above which brings $74 into focus, near the monthly pivot point. Matt Simpson, Market Analyst at City Index and Forex.com
NYMEX:CL1!Long
by CityIndex