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