Euro / U.S. DollarEducation
Trading Candles - Part 20
TUTORIAL
Today's candle was a very bullish candle. The candle was bullish because it Opened at the Low of the session and Closed near the High. The lack of a lower Shadow indicates there were no sellers trying to push the market lower. The lack of a tall upper Shadow indicates the market was not rejecting higher prices.
TRADING
Today's candle broke out and closed above the High of the Doji that formed two sessions ago and is an indication this market ready to move higher. Recall a Doji pattern indicates market indecision. A Close above the High of the Doji indicates a decision to move higher and a Close below the Low of the Doji is a decision the market is ready to move lower.
A Close above the High of a Doji is a trade setup to go "Long". However, we only want to go Long at Support. However, a Close above the High of a Doji that forms in between support and resistance is not a trade setup to go Long put rather indicates upward price continuation.
SUMMARY
No sellers, no higher price rejection, and a Close above the High of the Doji all points towards a powerful Long trade setup.
Today's candle was a very bullish candle. The candle was bullish because it Opened at the Low of the session and Closed near the High. The lack of a lower Shadow indicates there were no sellers trying to push the market lower. The lack of a tall upper Shadow indicates the market was not rejecting higher prices.
TRADING
Today's candle broke out and closed above the High of the Doji that formed two sessions ago and is an indication this market ready to move higher. Recall a Doji pattern indicates market indecision. A Close above the High of the Doji indicates a decision to move higher and a Close below the Low of the Doji is a decision the market is ready to move lower.
A Close above the High of a Doji is a trade setup to go "Long". However, we only want to go Long at Support. However, a Close above the High of a Doji that forms in between support and resistance is not a trade setup to go Long put rather indicates upward price continuation.
SUMMARY
No sellers, no higher price rejection, and a Close above the High of the Doji all points towards a powerful Long trade setup.
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