Yesterday move on the H4 candlestick which was drawn with arrrow i was expecting to form bearish engulfing candle however it did not give me confirmation and closed with long wick small body however on the m15 timeframe it was given me the confirmation following BOS and ChOCh since higher timeframe gave the most and clear move but how to read that candlestick on the h4 mentioned with arrow that in order to follow the trend on the m15
Below are the images since here i can put only one picture and im new user on babypips
Thanks in advance guysss
Charts are not a DNA print-out of what the market is doing and will do next, they are a diagram to help you decide what you should do.
So if you do not find a pattern which helps you make an entry on one time-frame, it is OK to move to another time-frame and use that chart. But where you put your SL, TP or pyramid orders must respect the new time-frame.
Alo recognise that bvery little reliable statistical data is in the public domain showing how well different chart patterns work on short time-frames. Almost everything we know about TA has come from work done on the D1 time-frame - this means if you go right down to hours or minutes, what was a reliable pattern in D1 might now be guesswork.
There’s nothing certain within intraday price action. There’s no way to know where price is going for certain. If there is/was, then a market wouldn’t exist.
One thing for certain is the interest rate differential. USD 5.5% > EUR 4.5%.
Projected: USD flat, EUR cut first.
On H4, a candle with a long wick and small body signals indecision. Check for trend confirmation on lower timeframes like M15. Focus on price action, support/resistance, and indicators for clearer direction.
Price charts are like a roadmap used to navigate the highly volatile environment (marketplace), price charts are there to give the trader foresight into trading setups and how to frame high probability trade entries. You can always alternate the H4 timeframe with the M15
