I’ve been using EMAs in all my trading and investing for years and here’s why: It’s used by a lot of traders, so trading signals are more robust. When it comes to trading, it’s worth following the crowd to understand their behavior It helps me instantly identify strong support and...
or just body, is colored with a dark color (red or black) for a drop in price and a light color (green or white) for a price increase. The lines above and below the body are referred to as wicks or tails, and they represent the day’s maximum high...
A MarubozuCandlestick patternis a candlestick that has no “wicks” (no upper or lower shadow line). A green Marubozu candle occurs when the open price equals the low price and the closing price equals the high price and is considered very bullish. A red Marubozu candle indicates that ...
It looks as though we are forming a triple top which also happens to be at a previous 2009 resistance level. Each time this level has been reached sellers take control and send the market sharply lower. There have been several long upper wicks formed in the past few sessions telling me th...
The rising three methods may be more effective if the initial bullish candlestick's wicks, denoting the high and low traded price for that period, are shallow. Understanding the Rising Three Methods Pattern The rising three methods pattern forms when a security's price action meets the following...
The reverse is true for a short top wick, confirming an uptrend among ascending candles. Conversely, long wicks show that the currency pair settled away from the extremes, evidencing a lack of trend. Recognizing Trend Trading Signals A trend trading signal generates when actual prices pierce a ...
Discover key candlestick chart patterns and their significance in financial analysis, and explore alternatives and their use in trading and investing
For good price action analysis, it is probably best to use a trading platform that provides candlestick charts. This is because analysing candle wicks and body’s is a large part of price action analysis. I would recommend the highly popular and widely available MetaTrader 4 (MT4) trading ...
candlestick chart. The first step is to identify a trading period where theopen, high, low, and close pricesare identical. This results in a single horizontal line without any shadows, making it look like a dash. The absence of wicks is a crucial feature, distinguishing it from other doji...
It is usually characterized by a long body of candles and wicks. While this is a very risky environment to trade, it poses more trading opportunities to a risk-taker. The only drawback in trading in this market is you might get stopped out frequently because of the large swings in price...