I think alot of people read what I say or basically everyone says and if they dont like it or dont want to find out what I understand that they would rather scrutinize.Originally Posted by ;
This a thread for studying how to exchange with candle sticks and price action. . .but I guess folks feel its a thread to argue.
If that's the case, I may have found my new house.
Japanese candlesticks aren't very reliable in their own. One needs to know the price action that creates them. Focusing on a hammer lineup will be less dependable than focusing on the price action the hammer lineup is inside. Under certain conditions, a hammer lineup with limited reliability can creep to more dependable hammer pattern.
Many traders that say candles do not operate on little timeframes, tend to be failing the circumstance, or price action the candles are inside.
BTW, price is constant. Therefore it is true that a period based on time, or contracts, or ticks, finally is random. But man is finite and therefore temporal. This doesn't have anything related to what I must say, but I wanted to tackle it as it was brought up earlier.
I have attached a screen shot of this Euro/USD. The timeframe is daily, but like I said I trade off of smaller timeframes. I was looking to show a specific pattern and I found one on the daily. The pattern is a Low Close Doji Pattern. John Pearson speaks a lot about high/low close dojis. In fact, there's a CME presentation by him on the subject. He uses a very generic pattern which is not that reliable. A more dependable pattern is displayed in the chart.
Things to note:
1. Extended upper shadow of this Doji is larger than the upper shadows of the other candles in the shaded region.
2. Extended upper shadow of this Doji is larger than the bodies of all the candles in the shaded region, except that the EB4 (expansion body).
3. The high of this Doji is higher than any of those candles at the shaded region.
4. The candle following the Doji closes lower than the low of this Doji, doesn't create a higher high and slightly engulfs the entire body of this doji. (at a Doji, the body is only a lineup as open=shut ).
5. The open and close of this Doji is at the lower third (1/3) of this range.
Whilst volume is not crucial for the pattern, I like to check at volume. From a VSA standpoint, the EB4 is an extensive spread candle with climatic volume with another candle down. The fact that the next candle is down demonstrates that there should have been some selling on the previous candle. The Doji itself, makes a higher high and not a reduced low on volume less than the previous two candles. This is an Up Thrust in the form of No requirement. Another indication of weakness.
But again, volume is not required to validate the pattern. Personally, I believe it helps.
I would really only wish to take this transaction if it occurs in just a Supply/Demand Delta Zone. But for the time being, we can only focus on just how this doji line traverses into a legitimate Low Close Doji Pattern.
Hello H/G
Thank you for sharing....but if as soon as potential can you,as you have shown together with the EURO instance, utilize Daily and 4 hr TF for potential charts...
Thank you
and take care
Okay sorry guys I really have not been keeping up with all the price action and candle stand cases.
Okay I guess ill clarify this euro rally that we are currently in and also a couple of good trades that performed.
Okay first things first the euro has been in a downward trend since 3/17.
No key there were a lot of great shorts but I will just enter the change that has been playing out that really knows if its the bottom its not our job to call pliers it our job to profit we're not prophets but we do profit. hehe.
Anywho regardless of if this is actually the bottom to deliver the euro back we dont care people are here in order to profit on price action that is unfolding today.
Okay down trend folks are short and more people wish to enter short why wouldnt afterward it sound reasonable. Going short wasnt a terrible idea but where and when. Well contrary to our plogy that the perfect place to put a short order is the cheapest place. The large of a downward trend. Buy high sell. Believe it or not most novice traders DONT DO THAT!
Most desire to go short on the test of a new low.
Okay so we know a couple of things on the 3/25.
Long term short are holding places from 3/17.
Middle term traders may have got in a bit later along the way.
Short term traders may have shorts open for the day.
Novice Retail traders have gone short on the next test of the low.
This Spells from the sentiment (SHORT). What a perfect opportunity to make some cash, but not in shorts. These Bears will need to cover at some stage dont they.
Two factors play in the reversal.
1. A Downward trend line was broken. Top Line
2. There was A station line exceeded. Bottom line
Most Trends End with one or both these factors present Try awaiting any chart you can find. Lineup trend lines and watch for a change once in is broken then makes an effort to test the line again.
Okay so strangely look what happens when following a fashion line break and a effort to create a new low fails [key word is neglects since this without the correct help from big smart money this might have just easily trapped individuals long and dropped even tougher ]
A failed new low imply Trapped Traders in short rankings and people can smell the blood... time to make some cash.
Ill go over the information for 6am to noon every day from 3/26 to 4/01.
Okay 3/26 wake up drink your java or frapachinos or what every individuals are poisoning them selfs with in the mornings and draw your fashion lines that the market has seen a base on the 25. So what we're now looking for is evidence that price will go higher. The ideal place to buy in a buyers market would be where folks are scared to buy. the bottom.
The two primary trend lines signify where buyers are present they've supported this twice. The next time neglect but WE DONT GO SHORT! In a bull market that the bottoms are ideal places for institutions to pick up dollars at a worth to profit from. So how do we make money? We let the counter tendency traders (Bears) exhaust them selves. They'll load up with short orders when associations are looking for undervalued price. TERRIBLE PLACE TO GO SHORT.
NEVER GO COUNTER TREND TILL A TREND LINE HAS BEEN BROKEN AND TESTED AND FAILS.
If you were looking for a failed new low service A was a perfect time.
Are you starting to see a pattern here larger time frames duplie yourself on smaller time frames. Price action transactions occur on all time frames. This was a mini version of what happened on the 25. New failed low.
Any who line B represents the ability of this counter tendency traders and was readily broken.
On a more compact time period that the candle rod pattern I believe it was just like a hammer with a few bars with nice shadows. The fact is merely knowing that bears were trapped was almost reason enough to input then their short trade failed. There were several places to hop in following the bears were exiting and on more small buy later on as another new low failed.
Hence the times profit was roughly 50~ pips based on your risk appetite.
This is the End of the week.
Ok the 29 was actually kind of a tricky day there was longs and brief sentiment and it showed in the charts
A bull trend line has been broken (not shown)
So we would wait for an examination but price action didnt reveal a bull strength therefore a new bull trend line has been broken for the afternoon LINE B a showed that the bears did prevail for the moment. Line be had been broken and tested with a couple tick snare that instantly fell. Short orders would be placed at the base of the Hammers since that's where those who presumed that this was the base of the down trend would place their stop losses. So we tuck our sell order in this really was a 30 pip move.
The following trade is a long trade that's revealed as a failing morning star.
The morning star collapsed to reach its goal and the goal was to fall back to the base of the move. Instead bull affirmed this in 2 steps up and the bears eventually gave up and coated propelling the eur/usd higher. About a 20 pip move
This later on in the day actually tested the older low and failed that mimicked the euro higher later. About a 10 pips.
3/30
Okay line A is the long term bull trend line draw out basically when the fad started.
Line A broken time to sell
Notice how price is extremely respectful of this EMA
you are able to see that a few buyers got anxious to hop in the trend they bought on the trend a bit that's a no no lol. That is just what gets folks trapped hoping and anticipating for a continuation. NO one is trapped how is the market going to move if everyone want to buy? So they trap them at a buy order and ship it down.
Notice how price recovers after the second evaluation of this trend line. That has been the bulls left boat.
A pleasant morning star and a outdoor pub were good entrances along with nice evidence that the bulls were losing the struggle.
Trend line D was also a failed attempt to undo the crash. That failed and drove the market farther down. On a minute time period it was simpler to comprehend.
Both signs could have netted around 75 pips for the day.
3.31
Alright Im loosing steam now so bare with me im going to make these last two descriptions somewhat short because its getting sort of redundant lol its basically the exact same thing every day dumb counter tendency traders getting squeezed out.
Will use 15 min pubs too to help show a longer term outlook.
Trend line A was create from yesterdays sell off.
Line A was broken Bull have shown their power.
Only for simplicities sake I have marked in white line everywhere bulls showed their strength and red lines shows where the countertrend bears covered sending the euro soaring.
In case you would have been awake and caught the initial leg up this could have been approximately a 100 pip move.
4/1 Today same shit different day lol
More neglected lows
This concludes our price action examples for weekly. Any queries or comments on how best to trade Price action are welcome.
Thank you fuzz!
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