Euro / U.S. DollarEducation
Trading Candles - Part 22
TUTORIAL
Today's candle formed a Neutral candle. Looking at the anatomy of today's candle the High and Low made a higher high and a higher low indicating the trend remains upward. However, the Close of today's session closed midway between the high and the low showing a balance of trading strength from both the buyers and the sellers indicating a neutral trading session. Further, the size of the Real Body is quite small compared to the size of the real bodies of the candles just before it. This indicates a low momentum trading session. With today's session being a Friday it is no surprise the session would be a low momentum session and a neutral session as these characteristics are common on a Friday.
TRADING
A trader holding a Long position should continue to hold its position. A trader who is not holding a Long position should not take a Long position. Taking a Long position now is high risk and is considered chasing the market. There should be no traders holding Short positions at this point in the upward trend.
Today's candle formed a Neutral candle. Looking at the anatomy of today's candle the High and Low made a higher high and a higher low indicating the trend remains upward. However, the Close of today's session closed midway between the high and the low showing a balance of trading strength from both the buyers and the sellers indicating a neutral trading session. Further, the size of the Real Body is quite small compared to the size of the real bodies of the candles just before it. This indicates a low momentum trading session. With today's session being a Friday it is no surprise the session would be a low momentum session and a neutral session as these characteristics are common on a Friday.
TRADING
A trader holding a Long position should continue to hold its position. A trader who is not holding a Long position should not take a Long position. Taking a Long position now is high risk and is considered chasing the market. There should be no traders holding Short positions at this point in the upward trend.
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