Thank you, Op, for the tutorial you gave. You did it pretty well, and it looks like you will make a series of tutorials about the trading idea. For others, they won't notice it much, but if an individual has a passion for trading, having an idea to be able to predict the direction of the price is really a huge help.
It's just like me; I just now somehow understood what it means in its actual appearance when doing trading activity in daily chart trading. I will look forward to this series you will do; it will be a great help to the community that wants to expand its knowledge of crypto trading.
Topic: Things we should know about the price action on candlestick pattern - page 2. (Read 202 times)
October 10, 2023, 10:18:10 AM
October 10, 2023, 02:14:03 AM
Why should we care? Of course, it can help us forecast where the price of the cryptocurrency we wish to trade will go in the market or in the future. Because, as the saying goes,
"A trader can use a market price to describe the human thought process that underpins a market's movement."
[a]Dark Cloud Cover
Candlestick patterns indicating a potential reversal to the downside appear at the top of an uptrend and consist
of a large bullish candle followed by a bearish candle that creates a new high before closing lower than the previous midpoint bullish candle.
5 criteria for the dark cloud cover
1. Existing Bullish uptrend
2. Bullish candle within that uptrend
3. A gap on the following day
4. The gap up turn into a down candle
5. Below the midpoint of the previous candle
Trading RULES:
1. An uptrend must be clearly present on the price chart
2. The dark cloud cover must be formation must be present
3. The second bar within the dark cloud cover must be outside upper Bollinger
band line
4. Enter a sell order at the break and close of the low of the second candle within the
dark cloud cover.
5. The stop loss must be placed above the high of the second bar of the dark cloud cover
formation.
6. Exit: the price crosses below the Bollinger band centerline and then closest above it.
or price touches the lower Bollinger band line.
-----TO BE CONTINUED------
"A trader can use a market price to describe the human thought process that underpins a market's movement."
[a]Dark Cloud Cover
Candlestick patterns indicating a potential reversal to the downside appear at the top of an uptrend and consist
of a large bullish candle followed by a bearish candle that creates a new high before closing lower than the previous midpoint bullish candle.
5 criteria for the dark cloud cover
1. Existing Bullish uptrend
2. Bullish candle within that uptrend
3. A gap on the following day
4. The gap up turn into a down candle
5. Below the midpoint of the previous candle
Trading RULES:
1. An uptrend must be clearly present on the price chart
2. The dark cloud cover must be formation must be present
3. The second bar within the dark cloud cover must be outside upper Bollinger
band line
4. Enter a sell order at the break and close of the low of the second candle within the
dark cloud cover.
5. The stop loss must be placed above the high of the second bar of the dark cloud cover
formation.
6. Exit: the price crosses below the Bollinger band centerline and then closest above it.
or price touches the lower Bollinger band line.
-----TO BE CONTINUED------
Jump to: