This article was first published on Tradeciety Online Trading.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
In this article, we are going to discuss the 10 best candlestick signals.
Candlesticks are very important because they are the representation of the interaction between the buyers and the sellers on financial markets.
Candlesticks are way more than what most people think and we are going to take a look beyond the surface level, trying to understand what the psychology behind the price action is telling us.
Although candlesticks can be powerful signals, they offer the most value when combined with other trading concepts.
In the scenario below, we see a strong bullish engulfing candle at a previous swing low.
The price was in a strong downtrend before the engulfing candle. But the failed breakout below the last swing and the immediate reversal with the engulfing candle shows that the sellers are not controlling the market anymore.
The scenario below shows a pinbar rejection after a trend change.
Prior to the pinbar, the uptrend has already turned....
To keep reading this article, please navigate to: Tradeciety Online Trading.