Every known piece of news, economic data, and market sentiment is already reflected in the asset's current price.
Identifying the trend is the single most important skill in trading. "The trend is your friend until it ends."
You don't necessarily need to buy a course. You can build your own living document. trading technical analysis masterclass pdf
Short-term, tight consolidation channels following sharp, near-vertical price movements. They imply the market is taking a breather before resuming the main trend.
A two-candle pattern where a larger candle completely "engulfs" the real body of the previous smaller candle. A bullish engulfing occurs after a downtrend when a green candle fully engulfs the previous red candle — a strong bullish reversal signal. A bearish engulfing occurs after an uptrend when a red candle engulfs the previous green candle — a strong bearish reversal signal. Every known piece of news, economic data, and
A small real body (the colored portion of the candle) near the top of the candle with a long lower wick. Hammers appear after a downtrend and signal potential bullish reversal. The long lower wick indicates that sellers pushed prices lower during the period, but buyers stepped in aggressively and drove prices back up to close near the high.
These patterns are not magical or guaranteed, but they provide valuable clues about shifts in market psychology. When combined with other technical tools like support and resistance or trend analysis, candlestick patterns become powerful confirmation signals for trading decisions. You can build your own living document
Western point-and-figure charts are dead. The world runs on Japanese Candlesticks.
A robust trading strategy should specify:
Draw your horizontal S&R lines on the Daily chart. Identify the "Value Area" where price has consolidated.