How to read this chart?

Beginner Questions
1

This is a 30 min chart.

I am showing a small sample of the bigger chart .

What these candles suggesting me ? Does price want to go up or go down ? also please tell me the reason why you think so.

lines are:
EMA 200 = Red
EMA 100 = blue
EMA 50 = green

please dont ask for bigger chart. I am not looking at trading decision. I am looking at what these candles are trying to tell probabilistically … and the reason ?

2

Hello Godzilla, and welcome. Straight away, even without knowing the currency pair or seeing the rest of the chart, and without even getting down to candle formation patterns and names, I see on this chart that the small-bodied candle sequence tell me a story of a lack of commitment from both buyers and sellers: stalling, congestion, stasis, call it anything you wish… How about that?

3

I dont follow news. I dont watch TV. I am not a fundamentalist. only chart is my friend :slight_smile: … currency pair is not important …I just trying to figure out what candle is trying to tell :slight_smile:

or seeing the rest of the chart,

Here is the chart …this time little bigger …I’m adding few more past candles .

and without even getting down to candle formation patterns and names I see on this chart that the small-bodied candle sequence tell me a story of a lack of commitment from both buyers and sellers: stalling, congestion, stasis, call it anything you wish… How about that?

what candle you’ll look here for a commitment ?

4

Ps: the fact that price is moving past the 50 and 100 moving averages would not be enough to make me want to buy the pair, as I would only truly trust a moving average strategy on higher time frames…especially the 200-period moving average, which I would only really make use of on a daily chart (or weekly/monthly), not on a shorter time frame…

5

Ah, I see that you replied before me… That is a textbook wedge formation: higher lows but lower highs, compressing like a coiled spring… This one screams ‘breakout’…, but which way: up or down? It depends what came before, potentially, as the breakout could resume the prevailing trend…

6

ok…here is the daily.

candle3.jpg700×171 17.8 KB

7

Not understood this highlighted part.

8

Hello Godzilla… Regarding the part that you found unclear, I would simply redirect you to the following section of BabyPips school:

Wedges | Important Chart Patterns | Middle School

Regarding the full version of the chart that you posted, showing the price action within a daily time frame,

it looks to me like the pair is now fully supported by both 50 and 100-period moving averages, and made a tentative

move above the 200-period moving average, however it failed to break a resistance level that it tested four times,

and the last candle shows a body with a close not much higher than its open, suggesting a lack of buyers’ strength

or conviction…

If I were to trade this, I would either trade it as a range or wait for a breakout… If you look at the twenty-first candle

from the right, you can see the breakout after a wedge/compression, suggesting a big event (news, etc.): while I understand

that you do not trade the news, I would imagine that you may be at least aware that a pair in this condition, with a lot of

congestion, may just need another piece of high-impact event risk to really get it back out of a ranging/sideways scenario.

This is entirely my interpretation: I am no expert.

Cheers.

9

My answer to the OP.

  1. 5 green candles in a row - on lower TFs you can often see this at the beginning of massive trends, although context plays a huge role.
  2. Big red candle and big green candle. That is equivalent to massive pinbar on higher TF - bullish sign. On small TFs this would sometimes go straight up, but since it is 30 min TF… it just doesn’t have enough ‘‘buildup’’ to go straight up… so it ended up into classical “false BO” after strong pullback.

Typically a good buy (Or maybe I should say ‘‘price is low’’) after this is behind pinbar. It seems like AB=CD worked (AB = lenght of initial pullback).

  1. Wicks above suggest that ‘‘price is high’’ over there, but that only means that bears have a chance… one decisive up candle and it could be over.

  2. Last candle… if you wanted to sell - you should have done it at the wick level, I certainly don’t think this is good enough “confirmation” that upper (wick) resistance will hold.

If I had to guess a scenario I would say that it will test lower pinbar resistance and eventually break up.

10

One time I saw an exercise not unlike the above, turned out the chart was a recording of rain fall.

Never forgot it, the lesson was … context.

11

's a price consolidation as the MA and narrowing and those long tailed candles are a confirmation of the same.

12

This is Silver chart.

Price break out above finally.