Price Action Trading ... Art and The Science
- Thread starter howardroark
- Start date
- Tags www.tradingbanks.com
We all know that Price (Price Action) is The King and the best way to Analyse the King / Price is to know the Candle Sticks, their patterns and the things they convey.
Understand that God is in small things and these small candlesticks are the road to bigger and consistent profits. Without in depth understanding of candlesticks, their patterns, their characters will not lead you anywhere in trading journey.
Every Candle has a Open (O) Price, the High Price that the Candle went up to in that Candle (H), the Low Price that Candle went Down to (L) and finally the Close Price (C). This constitutes the famous and all important OHLC.
Every candle has a body and wicks. Body shows the volume and wicks indicate the direction and strength of the direction.
Why is this important? The Difference between the H and the L shows the Strength / Liquidity / Momentum of the Pair. Higher is the difference between the H and the L, more is the Momentum / Liquidity, lesser is the difference between the H and the L, lesser is the Momentum / Liquidity.
If the H and L convey the Momentum / Liquidity / Strength, the O and C convey the direction. Horizontal line on the left side of the candle is Open and the Horizontal line on the right side of the candle is Close. If the C is Higher and Above the O, Market is Going UP. If the C is Lower and Below the O, Market is going DOWN.
Understand that God is in small things and these small candlesticks are the road to bigger and consistent profits. Without in depth understanding of candlesticks, their patterns, their characters will not lead you anywhere in trading journey.
Every Candle has a Open (O) Price, the High Price that the Candle went up to in that Candle (H), the Low Price that Candle went Down to (L) and finally the Close Price (C). This constitutes the famous and all important OHLC.
Every candle has a body and wicks. Body shows the volume and wicks indicate the direction and strength of the direction.
Why is this important? The Difference between the H and the L shows the Strength / Liquidity / Momentum of the Pair. Higher is the difference between the H and the L, more is the Momentum / Liquidity, lesser is the difference between the H and the L, lesser is the Momentum / Liquidity.
If the H and L convey the Momentum / Liquidity / Strength, the O and C convey the direction. Horizontal line on the left side of the candle is Open and the Horizontal line on the right side of the candle is Close. If the C is Higher and Above the O, Market is Going UP. If the C is Lower and Below the O, Market is going DOWN.
Now that, we know what constitutes candlesticks, let us understand different candle patterns and their importance on our daily trading decisions.
Doji candles – when a candle has wicks on both the sides, that candle is called as Doji candle. Body of a Doji might be equal to or smaller than the Wicks.
Doji candles indicate INDECESSION and Yell “STAY AWAY”. Remember that, Doji candles appear both as the continuation of a trend (after a consolidation / pull back) or signalling a reversal in trend.
Doji candles – when a candle has wicks on both the sides, that candle is called as Doji candle. Body of a Doji might be equal to or smaller than the Wicks.
Doji candles indicate INDECESSION and Yell “STAY AWAY”. Remember that, Doji candles appear both as the continuation of a trend (after a consolidation / pull back) or signalling a reversal in trend.
We all know that Price (Price Action) is The King and the best way to Analyse the King / Price is to know the Candle Sticks, their patterns and the things they convey.
Understand that God is in small things and these small candlesticks are the road to bigger and consistent profits. Without in depth understanding of candlesticks, their patterns, their characters will not lead you anywhere in trading journey.
Every Candle has a Open (O) Price, the High Price that the Candle went up to in that Candle (H), the Low Price that Candle went Down to (L) and finally the Close Price (C). This constitutes the famous and all important OHLC.
Every candle has a body and wicks. Body shows the volume and wicks indicate the direction and strength of the direction.
Why is this important? The Difference between the H and the L shows the Strength / Liquidity / Momentum of the Pair. Higher is the difference between the H and the L, more is the Momentum / Liquidity, lesser is the difference between the H and the L, lesser is the Momentum / Liquidity.
If the H and L convey the Momentum / Liquidity / Strength, the O and C convey the direction. Horizontal line on the left side of the candle is Open and the Horizontal line on the right side of the candle is Close. If the C is Higher and Above the O, Market is Going UP. If the C is Lower and Below the O, Market is going DOWN.
Understand that God is in small things and these small candlesticks are the road to bigger and consistent profits. Without in depth understanding of candlesticks, their patterns, their characters will not lead you anywhere in trading journey.
Every Candle has a Open (O) Price, the High Price that the Candle went up to in that Candle (H), the Low Price that Candle went Down to (L) and finally the Close Price (C). This constitutes the famous and all important OHLC.
Every candle has a body and wicks. Body shows the volume and wicks indicate the direction and strength of the direction.
Why is this important? The Difference between the H and the L shows the Strength / Liquidity / Momentum of the Pair. Higher is the difference between the H and the L, more is the Momentum / Liquidity, lesser is the difference between the H and the L, lesser is the Momentum / Liquidity.
If the H and L convey the Momentum / Liquidity / Strength, the O and C convey the direction. Horizontal line on the left side of the candle is Open and the Horizontal line on the right side of the candle is Close. If the C is Higher and Above the O, Market is Going UP. If the C is Lower and Below the O, Market is going DOWN.
Every candle has only 2 parts ... Body and wicks ... What comes out of body are wicks ...
Doji has wicks on both sides ... Up trend candles will have no or negligible wicks on the upside ... Down trend candles will have no or negligible wicks on lower / bottom side ...
Hope it helps ...
Ask any doubt ....
Doji has wicks on both sides ... Up trend candles will have no or negligible wicks on the upside ... Down trend candles will have no or negligible wicks on lower / bottom side ...
Hope it helps ...
Ask any doubt ....
Bullish candles have Higher Close than Open, meaning, the market moved Higher in that particular candle.
Bearish Candles have Lower Close than Open, meaning, the market moved Lower in that particular candle.
When a series of candles have Higher close than Open and Higher Close than previous Candle High, we have The Up Trend.
When a series of candles have Lower close than Open and Lower Close than previous candle Low, we have Down Trend
Bearish Candles have Lower Close than Open, meaning, the market moved Lower in that particular candle.
When a series of candles have Higher close than Open and Higher Close than previous Candle High, we have The Up Trend.
When a series of candles have Lower close than Open and Lower Close than previous candle Low, we have Down Trend
Bullish Engulfing Bar (BUEB)
A BUEB candle engulfs the previous Bearish Candle in full and closes above the Bearish candle High indicating a Bullish Bias. This can happen during the consolidation in an Up Trend or as a reversal in a Down Trend.
Bearish Engulfing Bar (BEEB)
A BEEB candle engulfs the previous Bullish Candle in full and closes below the Bullish candle Low indicating a Bearish Bias. This can happen during the consolidation in a Down Trend or as reversal in a Up Trend.
A BUEB candle engulfs the previous Bearish Candle in full and closes above the Bearish candle High indicating a Bullish Bias. This can happen during the consolidation in an Up Trend or as a reversal in a Down Trend.
Bearish Engulfing Bar (BEEB)
A BEEB candle engulfs the previous Bullish Candle in full and closes below the Bullish candle Low indicating a Bearish Bias. This can happen during the consolidation in a Down Trend or as reversal in a Up Trend.
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