Sorry, this was accidentally published as a Private Idea yesterday, so I am re-publishing it today!
TUTORIAL
Today's candle was a strong bearish candle. A strong bearish candle opens at the high or very close to the high of the session and closes near its low. A bearish candle would open within 25% of the high of the candles range and close within 25% of the low of the candles range. The percentages shown are for reference only and can vary somewhat. A very strong bearish candle would open at or very close to the high of the sessions range and close at or very close to the low of the candles range. The stronger the candle the more reliable it is as an indicator the market would continue to move lower.
Today's candle also made a lower high and a lower low indicating the beginning of a downward trend. Further, today's candle also closed below the low of the previous candles low confirming a downward trend.
A strong bearish candle, lower highs and lower lows, and a close below the low of the previous candle all signal this market is ready to move lower.
TRADING
If I were to trade this candle setup I would place an Entry and Stop Loss as shown on the chart.
TUTORIAL
Today's candle was a strong bearish candle. A strong bearish candle opens at the high or very close to the high of the session and closes near its low. A bearish candle would open within 25% of the high of the candles range and close within 25% of the low of the candles range. The percentages shown are for reference only and can vary somewhat. A very strong bearish candle would open at or very close to the high of the sessions range and close at or very close to the low of the candles range. The stronger the candle the more reliable it is as an indicator the market would continue to move lower.
Today's candle also made a lower high and a lower low indicating the beginning of a downward trend. Further, today's candle also closed below the low of the previous candles low confirming a downward trend.
A strong bearish candle, lower highs and lower lows, and a close below the low of the previous candle all signal this market is ready to move lower.
TRADING
If I were to trade this candle setup I would place an Entry and Stop Loss as shown on the chart.