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Look for long wicks near key levels to confirm strong buying/selling pressure. Two candles side by side with long wicks often signal a reversal. Long wicks can also help to identify supply/demand zones when found at points of reversal.
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The purpose of this post is to highlight the importance of understanding the limitations of Candlestick patterns which may look 'professional'.
Candlestick patterns are widely accepted but can sometimes misuse by unqualified people to glamorise their accuracy in predicting the price trend also known as confirmation bias.
Important to use Candlestick patterns with fundamental analysis and verify with market reality:
...it is crucial to underst...
Candlestick patterns are widely accepted but can sometimes misuse by unqualified people to glamorise their accuracy in predicting the price trend also known as confirmation bias.
Important to use Candlestick patterns with fundamental analysis and verify with market reality:
...it is crucial to underst...
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Bullish candlestick patterns
Bullish candlestick patterns help to identify uptrends or trend reversals to uptrends.
Morning star pattern
The stock must have been in a definite downtrend before this signal occurs.
This is a 3-star pattern. The first day of the signal must be a long red body. The second day must be a day of indecision (star shape). The third day should be a long green candle reaching at least halfway into the body of the first day's red ca...
Bullish candlestick patterns help to identify uptrends or trend reversals to uptrends.
Morning star pattern
The stock must have been in a definite downtrend before this signal occurs.
This is a 3-star pattern. The first day of the signal must be a long red body. The second day must be a day of indecision (star shape). The third day should be a long green candle reaching at least halfway into the body of the first day's red ca...
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well show the pattern of the high and lows.The resistant point of going up or down.
Good morning everyone! Yesterday we hit some great trades.
We closed below the 4 hour 200SMA, and then premarket we got rejected and so far have not closed above it. This makes me bearish. Wish I woke up earlier, I would have taken that short trade.
For reference, the 200SMA is incredibly significant.
We haven't seen the 200SMA in actrion since the previous larger golden cross to the upside out of the coil range we created. Some refer to it as a squeeze range.
Also, completely coincide...
We closed below the 4 hour 200SMA, and then premarket we got rejected and so far have not closed above it. This makes me bearish. Wish I woke up earlier, I would have taken that short trade.
For reference, the 200SMA is incredibly significant.
We haven't seen the 200SMA in actrion since the previous larger golden cross to the upside out of the coil range we created. Some refer to it as a squeeze range.
Also, completely coincide...
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