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Explained in one chart:-
-Using EMA as Support/Resistance
-Addition to an open position
-Supply absorbing candle
-Swing high occurrence
-Volume Confirmation
-Supply Zone
Sharing it might really help someone.
Explained in one chart- Using indicators to confirm Price movement.
Indicators are not entry signals but a statistical tool for comparison with the historical price.
Here, the lowering of OBV and Volume has been used to confirm a short entry along with Prime movements.
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In a similar manner, on confirmation of a candle which failed to absorb the supply above, a safe short entry can be made.
1. Look for candle with long overhead wick.
2. Wait for previous supply to be broken.
See pic below for a short entry.
The same principle is applicable with candles with a long overhead wick.
This implies that the candle was not able to absorb all the supply above itself, which is generally bearish.
We should look for signs of reversal at this level.
At this zone, traders could look for a safe long entry.
1. Look for candles with a long tail.
2. It should have bounced off of a previous resistance now turned support.
3. Wait for the price to break a resistance above.
Candlesticks with a long tail wick, about 2-3 times their body have overcome a big supply zone.
This means that below that candle existed a huge supply order which was absorbed .
This is generally bullish, means the demand in that zone was able to overcome the supply.
See Pic
Finding SUPPLY and DEMAND pressure using candlesticks.
Candlesticks can be used to find supply and demand pressure, specially in intra-day trading.
I hope this changes how you view and use candlesticks on a daily basis.
A thread.
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