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Candlestick Analysis

Is the bear market bounce in the AUDJPY over? 16 Risk Reward!Hello! Here is my fundamental case to be short AUDJPY 1) Strengthening economy in Japan - Is Japan finally out of its 30 year lul? 2) Weakening Economy in Australia - Are interest rates finally starting to effect the economy? 3) Extreme household debt in Australia due to the extreme property hype cycle (People say its because of immigration, I think this is just a narrative... I remember when Hong Kong 'didn't have enough space') Australia hast had its 2008 moment yet, 4) Debt is on govt balance sheet in Japan already... Australia will probably join the govt debt club once they have their property cycle FINITO. Here is my technical case to be short AUDJPY 1) We have rallied to the 61% Fibonacci of the first impulse down. 2) The 'False breakout' at 102ish gives us a good level to know we are wrong. This helps to provide a RIDICULOUS risk reward of 16:1. Thanks Kavi
Short
by kavijh
1
Gold- In search for a bottomTrading OANDA:XAUUSD has been nothing short of a roller coaster since early October. Initially, it seemed like the rally might never end, but now the drop is unfolding in a similar manner. Although I anticipated a strong decline, I’ll admit that I didn’t expect it to be quite this steep. Gold has now fallen 2,000 pips from its all-time high, and to me, it’s clear that the 2,800 level is likely to hold for a while. However, the outlook for the downside remains uncertain. The price has broken below several key support zones and even briefly tested levels below the 2,600 mark. On a positive note for the bulls, each dip below 2,600 has been met with a quick reversal, which may suggest a false breakout. Whether this holds true is still unclear and requires confirmation—a move back above 2,620 would be a positive signal, potentially setting 2,660 as the next target. On the downside, there is significant support at 2,525, although recent rebounds from 2,600 make it unlikely this level will be tested in the coming days (though with this level of volatility, anything is possible). In summary, I am currently out of the market but will be watching closely for clear signs of a bottom to confirm a new buying opportunity.
OANDA:XAUUSD
by Mihai_Iacob
9
Downward parallel channel still governing NiftyThe downward channel still governing Nifty and crushing it at every giving opportunity through continuous selling pressure from mainly FIIs. However Bollinger Bands is starting to suggest that Nifty might be oversold. Supports for Nifty now remain near 23822, 23611, 23380 and 23197. Resistance for Nifty remains at 23968, 24088, 24167, 24388 and 24548. Every bounce so far has been utilised by FIIs to sell. DIIs however are on a continuous buying trail. This fall for long term investors with a horizon of 12 to 24 months can be utilized for wealth creation as Some of the large caps and Selective Mid and small caps are now started to reach mouth watering levels. Disclaimer: The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock. We do not guarantee any success in highly volatile market or otherwise. Stock market investment is subject to market risks which include global and regional risks. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message.
NSE:NIFTY
by Happy_Candles_Investment
FVGs holding BTC up indefinitely right now, deviation targets inFor those who don't know, these imbalanced ranged are the keep to a trend. Many use trend lines to inadvertently ride the effect of FVGs but it's the zone itself that is propelling the trend and the line that is generated as these keep stacking is a byproduct and a secondary technical tool. These zones are where Supply and Demand will be the strongest! Keep your eye out for how these are being respected or disrespected in this rally to the deviation targets while keeping in ming that every pull is an algorithmically delivered precise measurement to get the right target for the slingshot. Be safe on this ride 🧠
COINBASE:BTCUSDLong
by HollywooodTrades
Hang Seng heaviness opens door to downside flush Hang Seng futures look heavy. Friday’s bearish engulfing candle has been followed by two consecutive declines, leaving the price teetering just above horizontal support at 20280. With RSI (14) and MACD providing bearish signals on momentum, the inclination is to sell rallies in the near-term. It may also see a potential break of 20280 stick where so many other attempts have failed recently. If we were to see futures break (and preferably close) below 20280, you could sell with a stop above the level for protection. The May 20 high of 19772 would be the initial trade target, especially with the 50-day moving average located just below. If that level were to be broken, it opens the door to a potential deeper flush to 18500 with only minor support at 18945 located in between. Good luck! DS
HKEX:HSI1!Short
by FOREXcom
Nitin Spinners can spin profitNitin Spinners Ltd. engages in the manufacture of cotton yarn and knitted fabric. Its products include apparels and garments, under garments, terry towels, woven fabrics, home furnishings, carpets, denim, industrial textiles, medical textiles and socks. It operates under the Within India and Outside India geographical segments. Nitin Spinners Ltd. CMP is 409.95. The positive aspects of the company are Attractive Valuation (P.E. = 14.9), Company with Zero Promoter Pledge, FII / FPI or Institutions increasing their shareholding and Increasing profits every quarter. The Negative aspects of the company are Stocks Underperforming their Industry Price Change in the Quarter, Inefficient use of shareholder funds and Poor cash generated from core business. Entry can be taken after closing above 412 Targets in the stock will be 431 and 449. The long-term target in the stock will be 462 and 475. Stop loss in the stock should be maintained at Closing below 385 or 375 depending on your risk taking ability. Disclaimer: The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock. We do not guarantee any success in highly volatile market or otherwise. Stock market investment is subject to market risks which include global and regional risks. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message.
NSE:NITINSPINLong
by Happy_Candles_Investment
Gravita looks Great for a long run. Gravita India Ltd. engages in the manufacture of lead metals by the process of smelting and recycling followed by refining, alloying and manufacture of lead oxide. The firm also trades lead scrap, ore, concentrates, battery scrap and allied Lead products globally. It operates through the following segments: Lead, Aluminium, Turn Key Solution, and Others. Gravita India Ltd. CMP is 2243.25. The positive aspects of the company are Company with Zero Promoter Pledge, MFs increased their shareholding last quarter, FII / FPI or Institutions increasing their shareholding, Increasing Revenue every quarter for the past 3 quarters and Growth in Net Profit with increasing Profit Margin. The Negative aspects of the company are high Valuation (P.E. = 57.7), Stocks Underperforming their Industry Price Change in the Quarter, Declining Net Cash Flow : Companies not able to generate net cash and Increasing Trend in Non-Core Income. Entry can be taken after closing above 2337 Targets in the stock will be 2413 and 2593. The long-term target in the stock will be 2688. Stop loss in the stock should be maintained at Closing below 1963 or 1770 depending on your risk taking ability. Disclaimer: The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock. We do not guarantee any success in highly volatile market or otherwise. Stock market investment is subject to market risks which include global and regional risks. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message.
NSE:GRAVITALong
by Happy_Candles_Investment
Nifty is trapped between Mother line and trend line resistance. Nifty is trapped between Mother line and trend line resistance. The comeback that Nifty made from lows of the day was good. Today's low was 24004 from there the Nifty closed at 24141. The resistance on the way up for Nifty currently seem to be at 24221 (Mother line 50 Hours EMA), 24339, 24541, 24587 (Major Father line resistance 200 hours EMA) and 24700. Supports for Nifty remain at 24086, 24004 and finally 23816. 23816 is a major major support right now holding it from a major few hundred or even a thousand point fall. All is good till we do not get a closing below this point. Shadow of the candle right now looks neutral to positive. To know more about stop losses, trailing stop losses, Profit booking and investment, financial awareness in general, process of investment in Equity or Mother, Father and small child theory read my book The Happy Candles Way to wealth creation. Many People who have read it consider it as hand book and perfect guide to equity investment. You can read reviews of the book or purchase the same from Amazon. The book is available on Amazon in Kindle and paperback version. I am sure you are going to find it of massive use. Once you have read the book, I assure you that you will become a next level investor. Disclaimer: The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock. We do not guarantee any success in highly volatile market or otherwise. Stock market investment is subject to market risks which include global and regional risks. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message.
NSE:NIFTY
by Happy_Candles_Investment
EDUCATION: Simplified Candlestick Psychology (Part 2)In the world of trading, candlesticks are more than just visual representations of price movements—they're windows into the psychology of the market. Every candlestick tells a story, and if you can learn to read it properly, you can understand the underlying emotions of buyers and sellers. Think of it like reading a book, where every candle is a chapter that contributes to the bigger narrative. In the previous video, we went over the anatomy of a candlestick and this time we dive into the psychology behind the Open, High, Low, and Close (OHLC) values on the chart. This way, you can read the market like you would a good book—predicting what might happen next based on what you've already learned. Anatomy of a Candlestick Before we dig into the psychology, let’s first look at the anatomy of a candlestick. A standard candlestick consists of four key components: the Open, High, Low, and Close (OHLC). These are the foundation for interpreting market sentiment. Open: This is where the price started during that specific time period. Close: This is where the price ended at the close of that period. High: This is the highest point the price reached during that time frame. Low: This is the lowest point the price reached. The body of the candle is the difference between the Open and Close. The wicks (or shadows) represent the range from the Low to the High. The bigger the body, the stronger the move in that direction. The longer the wicks, the more indecision and struggle between buyers and sellers. The Psychology Behind the OHLC Now, let’s break down the psychology behind each component of a candlestick. Every candle is a snapshot of the market’s emotion, so understanding the story behind each piece can help you predict future moves. The Open: The Open represents the first battle of the trading session. It shows where the price starts, and it often sets the tone for the rest of the candle. If the market opens higher than the previous candle’s close, it suggests bullish sentiment, while opening lower indicates a bearish sentiment. But don't just focus on the open; its relationship with the close is just as important. The Close: The Close is where the real battle is won or lost. It’s the final decision of the market—did the buyers or sellers win the battle? A close near the high of the candle suggests strong bullish sentiment, while a close near the low indicates bearish sentiment. A close near the open suggests indecision or equilibrium in the market. Traders often view the close as the most important part of a candlestick because it shows the prevailing market sentiment. The High and Low: These two points tell us about the price extremes during the trading period. A long upper wick suggests that the bulls tried to push the price higher but were met with strong selling pressure. A long lower wick shows that the bears pushed the price lower, but the buyers fought back to reclaim some of the losses. A candle with small wicks indicates that the market didn’t have much fluctuation, and the momentum was steady in one direction. The Body: The body of the candlestick is the most visual part, showing the range between the Open and Close. A large body indicates strong momentum and confidence in one direction. A small body, on the other hand, indicates indecision, where neither side has been able to dominate the market. Putting it All Together Now that we understand the anatomy and psychology behind the OHLC, it’s time to combine the elements and read the story. For example: Bullish Candlestick: If a candlestick has a long body with a close near the high and short wicks, it indicates that buyers were in control, and they finished strong. Bearish Candlestick: Conversely, a candlestick with a long body, close near the low, and short wicks shows that sellers were in control. Indecision: A candle with a small body and long wicks on both sides indicates indecision or a battle between buyers and sellers. The market isn’t sure where it wants to go yet. Candlesticks, when grouped together, create patterns that help us predict future price movements. For instance, a series of bullish candles could indicate strong upward momentum, while a few indecisive candles in a row might suggest a potential reversal or consolidation. Practical Takeaways Watch the Close: The close is your primary indicator of sentiment. A close at or near the high (for bullish candles) or low (for bearish candles) can give you confidence in a trade. Long Wicks Mean Rejection: Wicks can show where the price was rejected, which helps identify areas of support and resistance. Don't Ignore Small Bodies: Small bodies with long wicks are signals of indecision. Don’t be too eager to jump into trades after such candles without further confirmation. Reading candles like a book isn’t just about recognizing patterns—it's about understanding the market's emotions and sentiment. Every candlestick is a snapshot of the battle between buyers and sellers, and by learning to read these battles, you can understand the market's story and predict what might happen next. How do you use candlesticks in your trading? Are there certain patterns or setups that you rely on? Share your thoughts below—I’d love to hear how you read the story in the charts!
FX:USOILEducation
by TLTurnerTV
EDUCATION: Simplified Candlestick Psychology (Part 1)As traders, understanding candlestick patterns is fundamental to decoding market behavior. But beyond the pattern itself, there’s a deeper story being told with every candle. Just like words form a story in a book, the Open, High, Low, and Close (OHLC) of a candlestick reveals the psychological battle between buyers and sellers at a given moment in time. In this video, we’re going to break down how to read candles like a book and uncover the psychology behind each price action move. The Anatomy of a Candlestick Before we dive into the psychology of candles, let's refresh on the basic anatomy of a candlestick: Open (O): The opening price of the candle, where the price starts within the time period. High (H): The highest price reached during the candle’s time frame. Low (L): The lowest price reached during the candle’s time frame. Close (C): The final price when the candle closes at the end of its time frame. Each candlestick provides valuable information about the price action during that specific time period. But what’s even more important is the psychological narrative it tells. The Psychology Behind the OHLC Understanding the psychology behind the Open, High, Low, and Close will give you insight into the market’s behavior and sentiment. Here’s a breakdown of what each component reveals: The Open (O): The start of the battle. The opening price represents the market's starting point. Buyers and sellers have already made their decisions before the candle even begins, and the open shows where the price begins to unfold. If the open is near the low of the day, it indicates a bearish sentiment, while an open near the high could show bullish strength. The High (H): The peak of the conflict. The high of the candle represents the furthest point reached by either the bulls or the bears. When the price reaches a new high, it signifies that the buyers are in control and pushing the price up. Conversely, if the high is lower than the previous candle's high, it suggests that sellers are starting to assert their influence. The Low (L): The valley of indecision. The low of the candle is where the price falls before either the bulls or bears regroup. A low that is lower than the previous low indicates that the sellers are pushing the price downward. A higher low, on the other hand, suggests that the bulls are holding the line and potentially setting up for a rebound. The Close (C): The conclusion of the battle. The close is the most important price point of the candlestick, as it represents where the battle between buyers and sellers has ended. The relationship between the open and close tells you who won the fight. If the close is higher than the open, buyers have won the battle. If the close is lower than the open, sellers have gained control. Reading Candles Like a Book When you look at a candlestick, think of it like reading a short sentence in a book. Each candle tells a small part of the market’s ongoing story, and together they form the narrative of price movement. Here's how to read the story: Bullish Candles (Close > Open): When a candle closes higher than it opened, it tells the story of a market that was dominated by buyers. The longer the body, the stronger the buying pressure. A large body with a small wick suggests buyers were in full control with little resistance. Bearish Candles (Close < Open): When the candle closes lower than it opened, it represents a market where sellers took charge. A long red body with little wick indicates a strong bearish move. A bearish candle with long wicks shows that although sellers were in control, there was some pushback. Doji Candles: A doji occurs when the open and close are almost identical, signaling indecision or equilibrium between buyers and sellers. Doji candles are like a “question mark” in the story, telling us that the market is uncertain about which direction it will take next. Engulfing Candles: An engulfing pattern, whether bullish or bearish, tells the story of a shift in momentum. If a candle completely engulfs the previous candle’s body, it signifies a strong change in sentiment—either a bullish or bearish reversal. Putting it All Together: Candlestick Psychology in Action Understanding the OHLC components is the first step, but it’s how these elements come together that really gives you the full psychological picture. A candlestick is like a snapshot of a battle. The open is where it starts, the high and low represent the range of movement during the battle, and the close is where the conflict resolves. When you read candles in sequence, you begin to see the ongoing tug-of-war between buyers and sellers. The story unfolds slowly, and the more you practice, the better you become at predicting the next chapter. Let me know your thoughts below!
FX:USOILEducation
by TLTurnerTV
Gold’s Pullback May Signal New Buying OpportunityGold began the week on a weak note, with its price dropping by around 200 pips from peak to trough. However, as I mentioned in my Friday analysis, a potential bottom may be forming, giving bulls hope for a recovery. Currently, Gold is trading precisely within a former resistance zone that now acts as support. As long as this level holds, there is a favorable outlook for a reversal. For now, I remain optimistic about a rebound, with potential for the price to climb back above 2700.
OANDA:XAUUSDLong
by Mihai_Iacob
4