A candlestick chart is a graphical representation used in financial analysis to display the price movement of an asset. It consists of individual "candlesticks," each representing a specific time frame (e.g., a day, hour, or minute).
This chart shows some of the past doji candles and what happened to the price of gold soon after. What this candle is telling us is that the buying and selling pressure is equal. So we know momentum is slowing and we should expect a consolidation or correction. Because gold has rocketed ...
This bounce setup is dynamic, meaning that it works on all time frames. Short-term traders can use it on the hourly charts, intermediate-term traders on the four-hour charts, and position traders on the daily and weekly charts. Bear in mind that the shorter the timeframe the less reliable...
Adoji(dо̄ji) is a name for a trading session in which a security has open and close levels that are virtually equal, as represented by a candle shape on a chart. Based on this shape,technical analystsattempt to make assumptions about price behavior. Doji candlesticks can look like a ...
Here are some visual examples of doji and spinning tops: Bullish/Bearish Engulfing Lines An engulfing line is a strong indicator of a directional change. Abearish engulfingline is a reversal pattern after an uptrend. The key is that the second candle’s body “engulfs” the prior day’s bod...
Here are some visual examples of doji and spinning tops: Bullish/Bearish Engulfing Lines An engulfing line is a strong indicator of a directional change. Abearish engulfingline is a reversal pattern after an uptrend. The key is that the second candle’s body “engulfs” the prior day’s bod...
In any case, confirmation helps clarify what the spinning top is saying. The confirmation comes from the next candle. If traders believe that the spinning top after an uptrend could result in a reversal to the downside, the candle that follows the spinning top might be a bearish one with a...
candle. The pattern surfaces after a stretch of bearish candlesticks in a downtrend. The candle’s opening price is significantly lower than the previous day’s low. The pattern closes well into the body of the previous candle, holding price from falling further, hence the name "belt hold."...
In a selloff, the majority of volume trading is to the downside, meaning more investors are rapidly selling rather than buying. As you might expect, this has a negative effect on price. In addition, high-volume days can be heavily influenced by noise traders. Noise traders are non-profess...
Traders usually step in to buy during the confirmation candle. Astop lossis placed below the low of the hammer, or even potentially just below the hammer’s real body if the price is moving aggressively higher during the confirmation candle. ...