Thanks that helps, what does the large wick indicate over a large candle? Is it based on momentum or highest price compared to average ?
One more thing, in the chart above, is the tweezer the first red candle ?
Thanks for the help.
Owen1299
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@finlay702, So the body of a candle shows where price opened and where price closed on that time frame, the wicks show the highest the price went and the lowest the price went in that time frame. So a big wick shows price pushed high then selling came back in so the candle closed lower. A tweezer is where 2 candles in a row both have large wicks, in which it kind of looks like a tweezer.
finlay702
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@Owen1299, and in this situation the tweezer showed you that it was going to start a decline ?
Owen1299
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@finlay702, it's a sign of a bearish reversal, we offer mentoring and a course if you're interested, or baby pips for just understanding forex is a great free website
finlay702
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@Owen1299, Ahh ok, thanks for your help, sorry for all the questions, i will definitely take a look at the site.
Owen1299
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As i manage a trade without SL, I gave my stop a bit more room when I went to sleep, so I'm still in this trade, one of those things I can't do on here.
SteeloTentacion
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yeah✊
Owen1299
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Hope this has helped a bit - research liquidity in forex, it will help understand how price pushes to a certain level and rejects
Owen1299
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Price has come back up now after a fake move down, dollar index still looking quite weak so may just be one of those trades that hit stop loss, holding for now though
Owen1299
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If you look at the 1h timeframe on this trade you will see two candle sticks rejected the level and both bodies closed below forming a ‘tweezer’ of wicks, this gives confirmation we should see some selling and we did
One more thing, in the chart above, is the tweezer the first red candle ?
Thanks for the help.