Scribd Logo
Upload

Welcome to Scribd!

  • 390 views

    Advanced Candlestick Analysis - Trading With Smart Money

    Uploaded by

    hiteshnp

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Advanced Candlestick Analysis - Trading With Smart Money

    Uploaded by

    hiteshnp
    390 views8 pages

    Original Title

    Advanced Candlestick Analysis - Trading with Smart Money

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    390 views8 pages

    Advanced Candlestick Analysis - Trading With Smart Money

    Uploaded by

    hiteshnp

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 8

    Trading with Smart Money


    Advanced Candlestick Analysis
     How to Study Candlestick
     Price Action Analysis
    Back to: Trading with Smart Money
    (Part – 1)
     Price Action Analysis
    (Part – 2)
    Advanced Candlestick Analysis
     Thrust Pullback and
    Measuring Move Analysis
    In this article, I am going to discuss Advanced Candlestick Analysis. Please read the Price Action Analysis
     How to Trade with Smart article before proceeding to this article. As part of this article, I am going to discuss the following pointers in
    Money
    detail.
     Trading with Sideways
    Price Action Area
    1. Advanced Candlestick Analysis
     How to Trade with Supply
    2. What price action validates the resistance/support level?
    and Demand Zone
    3. What price action disconfirms the resistance/support level?
     How to Day Trade with
    Trend
    Candlestick Analysis in Detail:
     Multiple Time Frame
    Analysis Each candlestick tells a story as they are a reflection of what buyers and sellers are doing or what the market
     Head and Shoulder is telling you. Use candlestick with support and resistance area
    Pattern
     How to Trade with 1. Support tends to break in a downtrend
    Support and Resistance 2. Resistance tends to break in an uptrend
     Pullback Trading Strategy 3. Support and Resistance tend to break when there is a tight range at SR level
     Advanced Candlestick 4. The more/frequently test of support resistance is weakening this level and break the level
    Analysis
    Then how to know whether the price will reverse from support or resistance or break level. I mean whether
    price confirms or disconfirm as support or resistance.

    DISCONFIRMATION AND CONFIRMATION

    At resistance we expect the price to reverse or supply exceed demand confirms the supply.

    What price action validates the resistance level?

    1. Clear Rejection from resistance in the form of the pin bar or outside bar or engulfing bar
    2. Momentum loss when approaching resistance
    3. Unable to close above the resistance level
    4. Low volume candle when approaching resistance

    CANDLE REJECTION

    Single candle rejection (pin bar)

    In an established downtrend any Clear Rejection from resistance in the form of the pin bar or outside bar or
    engulfing bar confirm the resistance level
    MULTIPLE CANDLE REJECTION

    Better if multiple candlesticks are rejecting an area as this shows that price tried over and over but failed
    When multiple candles refuse to go UP or rejection from resistance they ultimately go down Below are some
    example of multiple rejection candle from an area
    REJECTION CANDLE SHOULD CONFIRM BY FOLLOWTHROUGH CANDLE

    The next candle should follow-through candle for validation of rejection candle

    Momentum loss is the key to reversal when approaching a key level


    1. Candle getting smaller and multiple colour with wicks signal that buyers or sellers are losing strength
    2. Even better when it finishes with long wick candles (for bullish reversal lower ling wick and fro bearish
    reversal upper long wick)

    Below is the example of bullish reversal

    Price unable close above the resistance

    Buyers trying hard to close above the resistance level, each time they failed shows supply coming and trying
    to dominate demand

    Volume

    In an up-move, where the price is getting close to the upper trend line (resistance Line), and low volume
    appearing will tell you that the trend line is likely to hold for that moment in time because there is no effort to
    change the trend (you need buying to push through resistance).

    The resistance area which needs demand pressure to penetrate it. Low volume tells us there is little demand
    and thus the line is likely to hold.
    What price action disconfirms the resistance?

    1. Candle spread and volume increasing when approaching the resistance level
    2. If price hug the resistance and hold it disconfirm the supply and shows the presence of

    Candle spread and volume increasing when approaching the resistance level

    In an up-move, where the price is getting close to the upper trend line (resistance Line), and low volume
    appearing will tell you that the trend line is likely to hold for that moment in time because there is no effort to
    change the trend (you need buying to push through resistance).

    If the volume is high, with a widespread up, whilst the price is getting close to the upper trend line, we would
    expect to see the trend line broken due to the extra effort and the next day is level or even higher, then you
    would now be expecting higher prices. Any low volume down-day (potential test) will confirm this view
    If price hug the resistance and hold it disconfirm the supply and shows the presence of demand

    1. Price hold (unable to react) after a drive up


    2. The price will move up at resistance price form a tight trading range. Nevermore than 50% of the
    previous drive up. Tighter the better

    The main characteristic of BUYERS overcoming SELLERS is the repeated inability of prices to REACT away
    from the danger point(resistance). Such hugging of the HIGH usually leads to a breakout. Persistently heavy
    volume hammering the HIGH usually says a break is Imminent

    In this article, I try to explain the Candlestick Analysis in detail. I hope you enjoy this article. Please join my
    Telegram Channel to learn more and clear your doubts. https://t.me/tradingwithsmartmoney.

    ← Previous Lesson Back to Course →


    Pullback Trading Strategy Trading with Smart Money

    1 thought on “Advanced Candlestick Analysis”

    VIJAY
    FEBRUARY 16, 2020 AT 7:19 AM

    Good information provided, my watch so far goes like this, this is like a village Shandy with goods and sellers
    and buyers. Demand and supply with its intrinsic volume creates the ups and downs and feel that volume is a
    great factor that influence .t.tpriwhich
    Reply

    Leave a Reply
    Your email address will not be published. Required fields are marked *

    Comment

    Name* Email* Website

    Post Comment

    Newsletter Forums Blog About Privacy Policy Contact

        Copyright © 2020 Dot Net Tutorials | Design by Sunrise Pixel

    You might also like