There are 4 steps to reading price action: 1. Observing how prices moved in the past 2. Observing how prices are moving now, in relation to the past 3. Predicting where prices are not likely to go next 4. Considering…
Reversal candlestick psychology is one of the reasons why reversal patterns are such effective predictors of price reversals. Here’s why: In the above diagram, the bullish engulfing pattern has formed and the market is now moving up. The previous sellers…
This is a simple yet effective method of identifying where a ready pool of buyers and sellers are in the market. Did you know that a single candlestick (on its own) is by its nature, an area of support/resistance? Let’s…
If you’re been following so far, this next question should be easy for you to answer. What does this situation tell you about where the market price is more likely to be headed? Up or down? Take a moment to…
While a single candlestick helps us identify the strength of a price move, a group of candlesticks helps us understand the context of that price move. Allow me to illustrate this with a question: If we look at this single…
In the world of finance, economic indicator releases are highly-anticipated events that are closely watched by the professionals. You should avoid trading during these periods (especially if you’re new), as they involve macroeconomic topics that most beginner traders are unfamiliar…
This is one of the most important concepts candlestick analysis, so pay close attention… Now, what is price momentum? Price momentum is an approximation of the strength of a price move. As a start, we can gauge the momentum…
If you’re new to candlesticks, here’s a quick primer: What’s a candlestick? A candlestick is a graphical summary of market price movements within a period of time. It can represent price movements that occurred over a period of 1 minute;…
Candlestick analysis is how you’ll gather evidence to support your trading decisions. This article is to teach you to understand and appreciate the ongoing “story” of the market, and to identify the evidence you need to make effective trading decisions.…
Being a trader is very much like being a detective. Imagine you’re a detective who’s trying to solve a murder case… what’s the first thing you’ll have to do? You’ll have to conduct a general survey of the crime scene,…
