Charting has become a widely used science. Much of it seems overengineered and some follow it in a religious style. So it's critical to know what is important and what not. One of my favourite signals is this one here: The market is bullish and running up the hill. But the last candle with its very high top and lower close is showing you that the market has no more power. During the candle it was still strong but then towards the end of the candles time period the market got weak. A very good sign for the end of the trend.Same on the way down: The market fell for quite a few candles but at the end it snapped back up. The last candle has a very long leg and closed up. This shows you that the market wanted to go back up and wasn't being sold anymore during the candle.Watch out for long candle necks or candle legs. It's a great sign for reversals.I like it best in the 15min candle and trade the reversal in direction of the longer trend (1hour, 4 hour, daily). Add a tight stop loss and let the profits run.Give a look at the complete picture:- a candle with a very long neck- showing that the uptrend might run out of power- "indecisive" candles after the long neck candle- a turning MACD …
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