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Candlestickpattern

A Positive Divergent Signal!The candlestick pattern indicates a positive divergence since the stock is in the accumulation stage before proceeding to an uptrend movement. The upper limit triangle-like shape indicates price resistance when prices move up the result of the price action should increase in volume. The MACD and RSI indicators confirm the candlestick pattern which indicates a divergence signal. Let's save TTVHB in WL and watch out for significant price movement with an increase in volume above the MA20 line. R 0.840 S 0.695
TLong
by eskopitehmilo
High probability setupThis is what I'm going to be looking in the market for the next long term journey, this is a special setup based on patience, strategy and price action, high probabilities and high R:R, works better in high timeframes, we have just wait for the firt confirmation which is: 1. Shift of structure, after watching that we have to look for: 2. A good RESISTANCE/SUPPORT zone where the price is rejecting in Daily of 4H and search for a: 3. Chart pattern which can be a HEAD AND SHOULDERS OR DOUBLE BOTTOM, DOUBLE TOP..., if we have these confirmations, we can look for the last which is: 4. Candlestick pattern: in the shift of the structure which can be an engulfing, an evening/morning star or marubozu, also can be a doji with the wick for our direction Each one of these confirmations are 22% probabilities for our strategy, after getting all them we can enter the trade, put the stop loss a bit above or below the last structure point and take a 1:3 risk reward and the most important part is: SET THE TRADE AND FORGET, Allow the price to go where it has to go, don't change the T.P, don't change the S.L, accept the risk of the trade and take a loss if is the case or take a win if the market allows that, and continue with the plan, IT'S IMPOSSIBLE TO HAVE A 100% CHANCES, so even if you have all this confirmation, you can lose and you have to ACCEPT IT, for that: Stick to the RISK MANAGEMENT thinking in percentage, I recommend to use a 1%-2% per trade, and that's all BE PATIENT AND SMART, THINK IN LONG TERM Remember: "The market is a mechanism for transferring money from the impatient to the patient"
EIGHTCAP:XAUUSDEducation
by TraderEaglefx
Advanced Candlestick Pattern AnalysisAdvanced Candlestick Pattern Analysis Welcome to the intricate world of advanced candlestick patterns, a realm where subtle shifts in market sentiment are captured in the form and structure of candles on a chart. This article delves into some of the more sophisticated patterns that, while less common, offer insightful signals to those who can identify them. For readers eager to try spotting these patterns themselves, FXOpen's free TickTrader platform provides an ideal canvas to practise and observe these formations in real-time markets. Island Reversal Pattern The Island Reversal pattern is a distinct formation in advanced candlestick patterns, marked by a gap on both sides of a cluster of candles. This pattern signifies a possible reversal of the current trend. It appears as a small 'island' of trading activity separated by gaps from the larger price movement, indicating a sudden shift in market sentiment. Traders often view the Island Reversal as a strong signal. They typically wait for confirmation in the form of a price moving away from the 'island' before executing trades. For instance, traders might buy once the price moves above the pattern in a bullish island reversal. Conversely, in a bearish reversal, selling occurs when prices drop below the island. Stop-loss orders are generally placed on the opposite side of the gap, limiting potential losses if the expected trend reversal does not materialise. Hook Reversal Pattern The Hook Reversal pattern forms part of advanced candlestick analysis and is characterised by two candlesticks, where the first one aligns with the trend and the second is the opposite. Also, the second candlestick opens and closes within the first one. It can indicate a potential reversal in the current trend, particularly in a highly traded market. In response, traders often seek additional confirmation before acting, such as a continued movement toward the reversal. For instance, in a Bullish Hook Reversal, they might enter a long position when subsequent candles continue to rise. Stop-losses are commonly set just below the low of the second candle in a bullish reversal or above the high in a bearish reversal to manage risk effectively. Triple Gap (San-ku) Candlestick Pattern The Triple Gap (San-ku) candlestick pattern is a notable formation in candlestick chart pattern analysis, often signalling an impending trend reversal. It emerges through three consecutive candlesticks, each marked by gaps between them, reflecting a buildup of momentum. Typically, at least two of these sessions feature notably large candles. In recognising the San-ku, traders view it as a caution against the prevailing trend's sustainability, acknowledging that such accelerated momentum cannot persist indefinitely. This pattern does not pinpoint the exact reversal moment but indicates its likelihood shortly. Prudent traders often wait for further confirmation, such as a change in direction, before adjusting their positions. Stop-loss orders are strategically placed above a swing high/low to minimise potential losses if the anticipated trend reversal does not materialise promptly. Kicker Candlestick Pattern In stock analysis, candlestick patterns like the Kicker play a crucial role. This pattern is characterised by a drastic change in market sentiment, reflected by two candles moving in opposite directions. The first candle follows the current trend, while the second moves sharply in the opposite direction with a price gap, which strengthens the reversal signal. The Kicker is considered one of the most powerful reversal indicators. For a bullish kicker, traders might initiate a buy when the second candle's upward trend is confirmed, while in a bearish kicker, a sell is considered when the market continues trading downwards after the second candle. Stop-losses are often placed just beyond the start of the second candle to manage risk. Three Line Strike Pattern The Three Line Strike pattern, in the realm of trading candlestick analysis, is a unique trend continuation signal. It consists of three consecutive candles following the current trend (either bullish or bearish), followed by a fourth candle that strikes through the range of the first three. A bullish Three Line Strike starts with three rising green candles, followed by a long red candle that closes below the first candle's open price. This reflects a temporary pullback before the uptrend resumes. Conversely, in a bearish pattern, three falling red candles are followed by a green candle that closes above the first candle's open price, indicating a brief upward correction before the downtrend continues. Traders typically use this pattern to reinforce their confidence in the prevailing trend. Stop-loss orders are placed just beyond the fourth candle's extreme to protect against unexpected reversals. Belt Hold Pattern In the candlestick chart technical analysis, the Belt Hold stands out as a key reversal indicator. It’s characterised by a single, long candlestick that signals a shift in market momentum. In a downtrend, a bullish Belt Hold is represented by a long green candle, opening at its low and closing near its high. This reflects a possible shift to an upward trend. Conversely, during an uptrend, a bearish Belt Hold is identified by a long red candle, opening at its high and closing near its low, indicating a potential reversal to a downward trend. Traders typically look for additional market confirmation after a Belt Hold emerges before executing trades. For risk management, stop-loss orders are commonly placed just past the extreme end of the Belt Hold candle. Concealing Baby Swallow In candle technical analysis, the Concealing Baby Swallow is a rare but noteworthy bearish continuation formation. It consists of four candles in a downtrend, where the first two are black Marubozu candles (candles without shadows), indicating strong selling pressure. The third candle, also black, opens with a gap down. The fourth candle completely engulfs the third and closes within the first candle's body. This pattern may reflect a strong continuation of the bearish trend, with the fourth candle's engulfing nature indicating the concealment of any bullish attempt to reverse the trend. Traders often interpret this as a signal to maintain or initiate short positions, with stop-loss orders set above the high of the fourth candle. On-Neck The On-Neck is a bearish continuation formation in candlestick charting. It typically emerges in a downtrend and is composed of two candles: the first is a red candle, followed by a green candle. The second candle opens lower than the first candle's close and closes near the low or close of the first candle but not below it, creating a pattern that resembles a neck. This pattern indicates that selling pressure remains dominant despite a brief bullish interlude. Traders often view the On-Neck as a confirmation to continue or initiate short positions, expecting the downtrend to persist. For risk management, a stop-loss is usually placed just above the high of the second candle to protect against potential trend reversals. The Bottom Line In conclusion, mastering these advanced candlestick patterns may potentially enhance trading strategies. Each pattern provides unique insights into market dynamics, offering traders valuable tools for decision-making. To apply these concepts in real-world trading, consider opening an FXOpen account, a broker that provides robust platforms and resources to support your trading journey. 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.
NASDAQ:AMZNEducation
by FXOpen
3
TSLA: Last CHANCE to REACT! - D&W chartsTSLA shares are trying to react today, and this is something that could signal a recovery, which is understandable, given how much the price has fallen in recent weeks and how oversold the stock is at the moment. Since the last top in December, the stock has plummeted almost 30%, breaking all its medium-term supports, materializing a downtrend. I say the price is oversold because the RSI is at an extremely low level, and the last time we saw an RSI below 20, in December 2022, the stock actually recovered after confirming a bottom in the price. TSLA’s RSI analysis and comparison to December 2022: However, the trend is still downwards, and although there is the possibility of a recovery, it won't be easy to reverse the trend. Remember that pullbacks are different from reversals. For the price to reverse the downtrend, we would need to see HH/Hls again, as well as a break of the 21 EMA, which is clearly pointing downwards. What's more, TSLA's price is on the verge of triggering a Death Cross when the 50MA crosses the 200MA downwards, one of the most famous bear market signals. A continuation of the downtrend can be avoided if there is a strong and clear reaction as soon as possible, and now would be a good time, as the price has approached a support region on the weekly chart: We are close to the support line of a bearish channel. Last week's candle could be a possible Exhaustion Bar, but the price needs to react and reject the last bearish candle by breaking through its high at $217.80. Only then will we see a good reaction that could halt the long-term downtrend, or even reverse it. For now, until such a scenario materializes, any recovery could be just another Dead Cat Bounce. Remember that I’ll keep you updated on this, so consider supporting this idea if you liked it, and follow me for more analyses like this. All the best, Nathan.
NASDAQ:TSLA
by Nathan_The_Finance_Hydra
5
Most Powerful Candlestick Patterns Candlestick patterns are like building blocks in understanding how the stock market behaves and how prices might change. Knowing about these patterns can really help you make smarter decisions when trading. I. Introduction to 35 Candlestick Patterns Candlestick patterns are visual representations of price movements within a specific time frame. Each candlestick represents the opening, closing, high, and low prices for that period. The body of the candlestick is the difference between the opening and closing prices, while the wicks or shadows represent the price range. II. Bullish Candlestick Patterns A bullish candlestick pattern is essentially a visual signal that appears on a price chart, indicating a potential upward momentum or trend in the market. It’s like a green light for traders, suggesting that the price of the asset is likely to go up. Traders use these patterns to time their entry into the market with the goal of capitalizing on the anticipated price increase. Bullish Single Candlestick Patterns: Hammer: A single candlestick pattern characterized by a small body and a long lower wick, signaling a potential bullish reversal after a downtrend. Inverted Hammer: Another single candlestick pattern with a small body and a long upper wick, indicating a potential bullish reversal after a downtrend. Black Marubozu: A single candlestick pattern characterized by a long black body with no shadows, representing a strong bearish sentiment. White Marubozu: A single candlestick pattern characterized by a long white body with no shadows, representing a strong bullish sentiment Bullish Double Candle Patterns: Bullish Engulfing: A two-candle pattern where a small bearish candle is followed by a larger bullish candle that engulfs the previous one, suggesting a potential trend reversal to the upside. Bullish Piercing Pattern: A two-candle pattern starting with a bearish candle followed by a larger bullish candle that opens below the previous day’s low and closes more than halfway into the prior bearish candle. Bullish Counterattack: A two-candle pattern starting with a bearish candle, followed by a larger bullish candle that engulfs the entire range of the previous bearish candle. Tweezer Bottom: A two-candle pattern occurring after a downtrend, characterized by two consecutive bearish candles with similar lows, suggesting potential support and a bullish reversal. Mat Hold: A five-candle pattern suggesting a continuation of a bullish trend. It begins with a bullish candle followed by a bearish candle, a long bullish candle, a small bullish or bearish candle, and ends with another bullish candle. Bullish Triple Candle-Sticks Pattern: Morning Star Pattern: A three-candle pattern starting with a bearish candle, followed by a small indecisive candle (often a doji), and then a bullish candle, indicating a potential bullish reversal. Three White Soldiers: A bullish formation consisting of three consecutive long bullish candles. Each candle closes higher than the previous one, suggesting a strong potential upward movement. Rising Three Methods: A five-candle pattern signaling a continuation of the current bullish trend. It starts with a long bullish candle, followed by three smaller bearish candles, and ends with another long bullish candle. Upside Tasuki Gap: A three-candle pattern involving a bullish candle, a gap up, a bearish candle, and finally another bullish candle that opens within the range of the previous bearish candle. III. Bearish Candlestick Patterns A bearish candlestick pattern is a visual cue on a price chart that suggests a potential downward momentum or trend in the market. It’s akin to a red light for traders, indicating that the price of the asset is likely to decrease. Traders pay close attention to these patterns to time their entry into the market, aiming to profit from the expected price decline. Single Candle Patterns: Hanging Man: A single candlestick pattern resembling a hanging man, signaling a potential bearish reversal after an uptrend. Learn more about Hanging Man Candlestick Shooting Star Pattern: A single candlestick pattern characterized by a small body and a long upper wick, suggesting a potential bearish reversal. Bearish Engulfing: A two-candle pattern where a small bullish candle is followed by a larger bearish candle that engulfs the previous one, indicating a potential trend reversal to the downside. Black Marubozu: A single candlestick pattern characterized by a long black body with no shadows, representing a strong bearish sentiment. Double Candle Patterns: Evening Star Pattern: A three-candle formation indicating a potential bearish reversal. It starts with a bullish candle, followed by a small indecisive candle and ends with a bearish candle. Dark Cloud Cover: A two-candle pattern starting with a bullish candle followed by a larger bearish candle that opens above the previous day’s high and closes more than halfway into the prior bullish candle. Bearish Harami: A two-candle pattern. The first candle is a large bullish one, followed by a smaller bearish candle that is entirely within the range of the bullish candle. This pattern indicates a potential bearish reversal. Bearish Counterattack: A two-candle pattern starting with a bullish candle, followed by a larger bearish candle that engulfs the entire range of the previous bullish candle. On-Neck Pattern: A two-candle pattern where the first day has a long black body followed by a second day with a small body that closes slightly above the previous day’s low. Triple Candle Patterns: Three Black Crows: A bearish formation consisting of three consecutive long bearish candles. Each candle closes lower than the previous one, suggesting a strong potential downward movement. Three Inside Down: A bearish reversal pattern. It consists of a bullish candle, a smaller bearish candle that is completely within the range of the previous candle, and a larger bearish candle. Three Outside Down: A three-candle pattern. It starts with a bullish candle, followed by a larger bearish candle that completely engulfs the previous bullish candle, and then another bearish candle. Neutral Candlestick Pattern A neutral candlestick pattern doesn’t strongly indicate either a bullish or bearish trend. It’s like a yellow light, suggesting caution and indicating that the market is uncertain or indecisive about its direction. Traders look at these patterns to assess the market’s stability or potential upcoming change in trend. Single Candle Patterns: [/b Doji: A single candlestick pattern with a small body, indicating market indecision. It suggests a potential trend reversal, whether bullish or bearish. Spinning Top: A single candlestick pattern with a small body and long upper and lower wicks, signaling market indecision and potential trend reversal. High Wave: A single candlestick pattern characterized by a long upper and lower wick relative to the body, suggesting high market volatility and uncertainty. Double Candle Patterns: Tweezer Top: A two-candle pattern occurring after an uptrend, characterized by two consecutive bullish candles with similar highs, suggesting potential resistance and a bearish reversal
Education
by Golden_Star1994
1
Consistent Uptrend Momentum!The candlestick indicates a price fluctuating between consistent highs and lows as indicated by the resistance and support channel whereas the channel benefits as a guideline to predict price peaks and troughs. The price is within the lower channel and provides a buying opportunity. From the previous trades, there was no significant result in volume. Where the volume hasn't yet crossed above the MA line although price action is in place. MACD and RSI indicate a divergence signal that is aligned with the candlestick uptrend toward the next price resistance. Let's save WCT in WL and watch out for price action with result in volume crossed above the MA line. R 0.585 S 0.460
MYX:WCTLong
by eskopitehmilo
GOLD|Supply areas on the way to gold growthHello guys, I hope you are doing well. Gold moved up from a four-hour demand area with the confirmation of the hammer candle that I told you yesterday, it has now reached a four-hour supply area, which I refined to the 1-hour and 15-minute areas. -If the four-hour candlestick above the dashed line I drew closes, other sell positions have higher risk.You should look for buying positions in the support areas that I specified by getting confirmation. -In the same supply area where we are located, you can enter sales positions by observing the candlestick patterns and the necessary confirmations, or if it passes through this area and does not give approval to enter the position, you can enter the next supply area, which is around (2038- 2042) in mind.
OANDA:XAUUSDShort
by Golden_Star1994
HD: Finally Patterning Out Post-PandemicNYSE:HD benefited greatly from the pandemic lockdown and the numerous stimulus checks that over-stimulated all nations' economies. The stock has now moved above its trading range and has sustained, aka held onto, those gains. This patterns out the excessive revenues and earnings that were inevitably unsustainable for all of the companies that benefited from the brief surge of revenues due to the "over-stimulus checks." This is the Weekly Chart to show that the Year over Year comparatives that harmed HD for a couple of years is now patterned out.
NYSE:HDLong
by MarthaStokesCMT-TechniTrader
XAU/USD Short-Term AnalysisHello friends. Hope yore well. Lets take a quick look at Gold : 1.we approch a mid-term valid trendline and it can be considered as a pullback to this line. 2.as you can see price bounce from this trendline with a strong engulf candlestick. 3.a short-term trendline breaks too and we saw a pullback to it as well 4.Also we can see a Bullish Divergence in oversold area 5.2030 Support level have seen with overlap with this signs so gold will rise to the upper band of the longterm Trading range which is about 2060. Hope this is useful for you. Have great times. thanks for reading
OANDA:XAUUSDLong
by TraderAmin-KZ