Chorlton
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Have a think about what the last 3 bars are telling you. Price gapped higher, continued higher but at those higher levels price was rejected. On the next 2 bars, price opened, moved higher but again was rejected.
This suggests that there is some overhead resistance as sellers willing to offload at those higher prices. However, the higher lows suggests that there are still some buyers around.
Showing the volume for those last few bars would definately help to complete the story.
The next bar/few bars will be interesting and should offer some indication as to where price could go...
IMO it is far more important to understand WHAT the candlesticks are telling you rather than just identifing a particular pattern.
Chorlton
This suggests that there is some overhead resistance as sellers willing to offload at those higher prices. However, the higher lows suggests that there are still some buyers around.
Showing the volume for those last few bars would definately help to complete the story.
The next bar/few bars will be interesting and should offer some indication as to where price could go...
IMO it is far more important to understand WHAT the candlesticks are telling you rather than just identifing a particular pattern.
Chorlton
This is from a daily chart. I think the above formation in the right is a hammer or a hanging man. I am not sure. Is this a reversal or continuation pattern?
If it fills the gap and goes 1 tic lower I would go short.
However, it really is difficult to make an accurate assesment without seeing more of the chart.
Thank you very much for your answers and I apologize for not posting the whole chart. I just didn't want to bother you with all the details.
This is the chart as I see it right now. I also use the squeeze indicator (bollinger bands, keltner channel and momentum) but I didn't add them here to keep it light.
What I notice in this chart is that the volume is trending higher, the MACD is signaling long and the squeeze gave a signal to enter long in the last green candle. The chart is daily. What worries me is the candles pattern. It didn't made any higher highs and closed exactly where it closed the day before.
The last red candle is made this Friday. Is Friday considered a day that most traders liquidate their positions? I am thinking to put a protective stop at the low of the last green candle, in the upper end of the gap.
This is the chart as I see it right now. I also use the squeeze indicator (bollinger bands, keltner channel and momentum) but I didn't add them here to keep it light.
What I notice in this chart is that the volume is trending higher, the MACD is signaling long and the squeeze gave a signal to enter long in the last green candle. The chart is daily. What worries me is the candles pattern. It didn't made any higher highs and closed exactly where it closed the day before.
The last red candle is made this Friday. Is Friday considered a day that most traders liquidate their positions? I am thinking to put a protective stop at the low of the last green candle, in the upper end of the gap.
Thank you very much for your answers and I apologize for not posting the whole chart. I just didn't want to bother you with all the details.
This is the chart as I see it right now. I also use the squeeze indicator (bollinger bands, keltner channel and momentum) but I didn't add them here to keep it light.
What I notice in this chart is that the volume is trending higher, the MACD is signaling long and the squeeze gave a signal to enter long in the last green candle. The chart is daily. What worries me is the candles pattern. It didn't made any higher highs and closed exactly where it closed the day before.
The last red candle is made this Friday. Is Friday considered a day that most traders liquidate their positions? I am thinking to put a protective stop at the low of the last green candle, in the upper end of the gap.
Now that you put the whole chart on, it looks like a short if it fills the gap and goes 1 tic lower- especially with the macd in sell territory.
Anne Onymous
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This is from a daily chart. I think the above formation in the right is a hammer or a hanging man. I am not sure. Is this a reversal or continuation pattern?
Hi,
I know about the delay, I just saw this post, and FYI, this was a "Belt Hold" formation. Variation of a hanging man, bearish reversal pattern, but one of limited predictive power which warrants confirmation. In that case, closing of the window as was mentioned. Out of curiosity, what happened to it?
The image I posted was from last Friday's close. This is what is happened this Friday. I see it is turning bullish. Not as powerful as I would like but I don't think it is going to be a looser. I don't know what to think about those two red candles closing higher.
Anne Onymous
Junior member
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The image I posted was from last Friday's close. This is what is happened this Friday. I see it is turning bullish. Not as powerful as I would like but I don't think it is going to be a looser. I don't know what to think about those two red candles closing higher.
Hi,
Id personally be cautious and wait for the next candle due to the fact that you have two consecutive shooting stars here forming a harami. Thats two reversal patterns in one, hence waiting for confirmation or cancellation.
This is clearly a Bearish Counter Attack.
This is the definition: Counter attack line is formed when opposite-colored candles have the same close.
I would consider this as a fairly serious bearish signal due to the body of the red candle and it appeared after 3 good size up-days.
I would love to see more of these to make my learning more interesting
This is the definition: Counter attack line is formed when opposite-colored candles have the same close.
I would consider this as a fairly serious bearish signal due to the body of the red candle and it appeared after 3 good size up-days.
I would love to see more of these to make my learning more interesting
It's right in Nison book. They only show Bullish counter attack on the net for some reason.
Thanks for the information, and I would love to have a chance to test my learning from the candle master book on candlestick.
