Some key price action candlesticks we look for when entering a trade.
Pinbars: Sign for weakness/rejection, in the correct context, it can be a powerful trend reversal candle
Inside Bar: Short retracements / losing momentum, in the correct context, it can show whether a trend is continuing
Engulf Candle: opposite from the inside bar, this usually shows strength in either the bears/bulls. With the correct context, it can show signs of reversal too
Marubozu: 'Power' Candle, can be shown with or without a wick, Normally found in trend continuation, a big spike with a bias towards one side of the market. With proper and valid entry timing, it can be a good signal to ride the trend.
Doji: Exhaustion candle, bulls & bears fought for position, can be found in high volatility market, when a doji is formed, it is not recommended to enter a trade..
Thanks for posting. How can you differentiate the Pinbars vs Doji? They look similar.
bullstoyourbears
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@otisdes, Hi, Dojis and Pinbars are indeed similar!
However,
Pinbars we can see more body of candle, sorry my drawing above does not show a perfect Pinbar, usually the wick 3x more than the body.
Doji is usually just a flat "T" / " inverted T"