Here is one of the easiest to spot signals when it comes to candlestick reading, as well as a very accurate one.
Signals coming from the charts can get invalidated, meaning, you can have a signal that points to a change of trend and later the trend remains the same. For this reason, when trading we always use a stop loss.
Here we have what is called a "bullish engulfing" candlestick pattern. This happens when a bullish candle completely covers the bearish candle before it.
Marked light blue on the chart, you can see this pattern. The red/bearish candle, and the green/bullish candle which completely covers the bearish one before it.
On top of this pattern we also have a nice increase in volume (green volume bar below the last candlestick), as well as a break above EMA10. (Looking for additional signals that support your main signal is always good as your analysis will have more strength).
Now, this is the daily time frame, so we have to wait for the daily candle to close before this signal is complete and valid.
If you trade based on this formation, your stop loss can be placed right below the low of the bullish candle.
Looking back on Wanchain (WANBTC) price action, you can see that volume has been increasing a lot lately, this is another signal that a move up is approaching.
Note: This is not a piece of trade advice. This information is shared for learning and entertainment purposes only.
All of my trades are clearly marked and contain buy in price range, targets, stop loss and additional details.
Any updates on this trade !?
I know it’s active
Just what is the latest on this pls
Cheers :)