Get started

Candlestick Analysis

Doji Candlestick: A Key to Market ReversalsAlright, let’s break down the Doji candlestick pattern. If you're trading crypto, you've probably bumped into this little guy at some point. It’s not a wild trendsetter on its own, but it definitely has something to say about the market’s mood 🤔. The Doji is one of those candlestick patterns you’ll want to pay attention to if you're trying to catch reversals or just understand what's going on in the market. What is the Doji Candlestick Pattern? A Doji candlestick pattern forms when the opening and closing prices are almost identical. The body of the candle becomes tiny, while the shadows (the lines extending above and below the body) are long. It might look like a cross, plus sign, or even an “✖️.” The key point is that the market is indecisive, which is why this pattern gets so much attention. 🐂Bullish Doji Candlestick Pattern So, what happens when you spot a Doji after a downtrend? You might be looking at a potential reversal, signaling that the bears are running out of steam. A bullish Doji candlestick pattern forms when the market closes near the opening price but after a steady downtrend. It’s like the bulls are just waiting for the right moment to step in. But don’t jump in too quickly! A single Doji doesn't mean the market's ready to flip. Look for confirmation in the following candles — ideally, a strong bullish candle that closes above the previous high. 🐻Bearish Doji Candlestick Pattern Now, flip the script. If you see a bearish Doji candlestick pattern after a nice uptrend, it’s time to pay attention. This signals that the bulls might be running out of energy, and the bears could be gearing up for a push. It’s not an instant signal to sell, but it’s a red flag that the market’s strength is weakening. After spotting the Doji, wait for confirmation — usually in the form of a bearish candle that closes below the previous low. How to Use the Doji Trading Pattern Effectively? So you’ve spotted a Doji chart pattern. Now what? This pattern is all about context. If it shows up in the middle of a strong trend, it’s probably just a pause in the action — not a reversal. But, if it appears after a big rally or a significant drop, it could indicate that market sentiment is shifting. Here’s the key: Confirmation is king. The Doji itself doesn’t tell you where the market is going. It only tells you that the market is uncertain. Look for the next few candles to see if they support a reversal — a bullish follow-up candle after a bearish Doji or a bearish candle after a bullish Doji. 🏁Final Thoughts The Doji candlestick pattern can be a valuable addition to your trading strategy, offering insights into market sentiment when combined with other indicators. While it highlights moments of indecision, it's essential to exercise caution and not rely solely on a single signal. In trading, context, confirmation, and proper risk management are key. Remember, tools like the Doji are meant to inform your decisions, but ultimately, it's your judgment and strategy that will guide your moves. Happy trading!
Education
by WhiteBIT
What is Equilibrium in SMC. Balance and Imbalance in Forex Gold Equilibrium is one of the core elements for understanding market liquidity. In this article, we will go through the essential basics of liquidity in Forex trading with Smart Money Concepts SMC. You will learn the interconnections between supply and demand and I will explain how to easily identify balance and imbalance on any market. Let's start our discussion with understanding how forex pairs move. The price of an asset goes up if the market demand is stronger than the market supply. The excess of buying activity make the markets update the highs. In smart money concepts, such an event will also be called a buying imbalance. Look at a strong bullish rally on Gold. The price is going up because of a buying imbalance. A strong buying activity creates a massive amount of buyers with unfilled orders. To entice sellers to start selling, they must offer a higher-better price. At the same time, if the price of an asset goes down , it means that the market supply is stronger than a demand. The excess of supply will make the markets update the lows. In smc, it will be called a selling imbalance. That is exactly what is happening with GBPUSD forex pair. A strong selling activity and the shortage of demand makes the price go down. The excess of supply or demand on the market can not be eternal. The lower the price becomes, the more buyers will start buying, and the more sellers will start closing their positions. At some moment, the surplus of supply will be absorbed by the buyers. That will be a moment when the market will find equilibrium , the balance between supply and demand. A strong bearish imbalance on USDJPY made the price drop significantly. The falling price made 3 things: It attracted more buyers, because the lower the price the more profitable is buying USDJPY. It discouraged some buyers from buying, considering that the price is already "too low". It encouraged some buyers to close their positions in profit. Because of that, USDJPY stopped falling and found a balance in supply and demand. That is what we call Equilibrium . In a bull run, the higher the price will go, the more sellers will start selling. At some moment, buying imbalance will be absorbed by the bears and supply & demand will eventually balance. Such an event will be called the equilibrium . EURGBP was rallying strongly. The higher the price went, the more sellers started to sell, considering selling the pair more and more profitable. And the same time, fewer buyers were buying and the more started to close their buy positions in profits. At some moment, the entire excess of the market demand was absorbed by a supply. The market stopped growing and equilibrium was found. One of the main characteristics of a market equilibrium is sideways price movement and a termination of a formation of new highs or new lows. Usually, such a sideways price action will form a horizontal range. That's a real example how a CAD JPY pair found an equilibrium after an extended bearish movement. A formation of a horizontal range confirmed a balance between a supply and a demand. Please, note that these ranges will form on any time frame that you analyse. The rule is that the higher is the time frame of the range, the stronger is the market equilibrium. Above, I have 3 different charts: USDJPY on a daily time frame, EURJPY on a 4H and GBPUSD on 15 minutes. All the pairs found an equilibrium in horizontal ranges. An equilibrium on USDJPY will signify intra week or even intra month balance, while on EURJPY it will mean intraday/intra week balance. On GBPUSD, it will signify intraday equilibrium. Market equilibrium can not last forever. Fundamentals news and changing market conditions, make the market participants constantly reassess a fair value of an asset. A violation of the range and a breakout of one of its boundaries will be a trigger of an occurrence of an imbalance . A bullish violation of the upper boundary of the range will signify a buying imbalance and a highly probable rise to the new highs. While a bearish violation of the lower boundary of the range will mean a selling imbalance and a highly probable fall to the new lows. Please, study how GBPCHF was moving for a week on an hourly time frame. The periods of balance were changed by the periods of bullish or bearish imbalances, that found a new equilibrium on higher/lower price levels. Understanding of basic principles of supply and demand in trading is essential for profitable trading smart money concepts. Learn to recognize the periods of imbalance and equilibrium. It will provide you the edge in understanding and trading any forex pair. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
How to Analyze Daily Time Frame on Gold. 5 Important Things There are 5 important things that you should analyze on Gold on a daily time frame to accurately predict long term, midterm and short term movements. In this article, I will share with you a step-by-step guide for daily time frame analysis that you can apply on Gold or any other financial instrument. 1 - Identify the market trend When you analyze a daily time frame, you should identify long term, midterm and short term market trends. Long-term trend is based on the analysis of one year long price action. In the example above, Gold is trading in a long term bullish trend because the price keeps setting new higher high and new higher lows during the year. Midterm trend is based on the analysis of a price action for the last 4–5 months. Above, we can clearly see that a mid-term trend is bullish because again, the price sets new higher highs and higher lows over time. Short-term trend is based on the analysis of price movements for the last 2 months. Short-term price action is also bullish on Gold, with a clear sequence of higher highs and higher lows. According to the trend analysis, long-term, mid-term and short-term trends are bullish. 2 - Identify the directional bias The directional bias defines a highly probable future direction on the market. In our example, we can anticipate that Gold will keep growing among all the dimensions: long-term, mid-term and short-term. 3 - Execute structure analysis Identify important historic horizontal and vertical structures. That will be the points from where you should look for trading opportunities. When you analyze key levels, identify the structures that are lying close to the current price levels. Make sure that all the structures that you spotted were respected by the market in the past. 4 - Look for price action patterns Price action patterns are the language of the market. Proper identification of the patters will help you correctly understand the intentions of the market participants. You can see that a bearish breakout of a rising channel triggered a correctional movement on the market. Gold started to fall steadily within a bullish flag pattern and after it tested a key support, the price violated the resistance of the flag. 5 - Analyze candlesticks Candlestick patterns can provide extra clues and confirmations. You can see that the market formed multiple rejections from key support, an inside bar formation and bullish engulfing candle. Violation of the inside bar to the upside with a strong bullish candle is an important bullish signal. Combining trend analysis, structure analysis, price action and candlestick analysis, and you can make predictions and look for trading opportunities. You can also make your analysis even more sophisticated, for example, analyzing fundamental analysis or applying technical indicators. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
11
Mastering the Hanging Man PatternAlright, traders, let’s talk about the Hanging Man candlestick pattern. This one’s a classic, and if you know what you’re looking at, it can be a game changer when you’re spotting potential reversals. So, what exactly is the Hanging Man pattern, and how can you use it to your advantage? Let’s break it down. What Is the Hanging Man Pattern? The Hanging Man pattern appears when the market has been pushing higher, and then—bam—a sign that it could be running out of steam. It’s called the Hanging Man chart pattern because the candlestick looks like a little figure hanging by its feet, with a long lower wick. The body is small, and the lower shadow is long—typically at least twice the size of the body. This shows that while buyers were in control, sellers came in strong towards the end of the session, pushing prices lower. Hanging Man candles can be red or green. Even though the candle is green, it still suggests the same potential reversal because the rejection of higher prices by the sellers shows weakening bullish pressure. The key point to remember is that the Hanging Man candle pattern signals potential exhaustion in an uptrend. It doesn’t guarantee that the trend is reversing, but it highlights that the bullish momentum is waning, which could be a sign that a reversal is near. Where to Look for the Hanging Man Pattern? Context is everything. The Hanging Man pattern is much more significant when it appears at the top of an uptrend. In this case, it suggests that buyers are losing control, and the market could soon turn bearish. If it appears after a downtrend, it’s known as an Inverted Hammer, and its interpretation is different—it could signal a potential reversal to the upside. So, while the Hanging Man is typically seen as a bearish reversal indicator after a sustained uptrend, it is crucial to recognize that the context matters. A Hanging Man at the peak of a strong bullish trend often attracts attention from traders as a potential signal for a shift in momentum. How to Confirm the Reversal? The key to using the Hanging Man pattern effectively is the confirmation candle. After spotting the Hanging Man candlestick pattern, you’ll want to wait for a bearish candlestick in the next session that closes below the low of the Hanging Man candle. This confirms that sellers have taken control and that the market is likely heading lower. It’s also important to consider the volume during the confirmation. A strong bearish Hanging Man pattern with higher-than-usual volume adds strength to the reversal signal. If the confirmation candle has low volume, it might not carry as much weight, so always consider the volume when confirming the pattern. However, the Hanging Man candlestick pattern is not foolproof. A Hanging Man trading pattern without confirmation can sometimes lead to a false reversal, especially in markets with high volatility or when the overall trend is still strong. False Signals and Pitfalls One of the biggest challenges when trading the Hanging Man pattern candlestick is false signals. In choppy or sideways markets, the pattern may form but fail to lead to a true reversal. To avoid these traps, consider waiting for the confirmation candle and also use other tools to verify the signal, like: Trendlines: Ensure the market is actually in an uptrend before considering the Hanging Man pattern. Support/Resistance Levels: Wait for a breakdown below a significant support level to increase confidence in the reversal. Momentum Indicators (e.g., RSI or MACD): Use momentum indicators to confirm that buying pressure is truly weakening, as suggested by the Hanging Man pattern. These additional tools can help you filter out false signals and increase the reliability of your trades. The Hanging Man pattern can be a valuable tool when used correctly, but it’s not a standalone signal. It works best when combined with other forms of technical analysis, such as momentum indicators, trendlines, and volume analysis. Be patient, wait for confirmation, and always manage your risk. The Hanging Man trading pattern is a great addition to your candlestick pattern toolbox, but it should be used as part of a broader strategy that includes multiple indicators and sound risk management.
Education
by WhiteBIT
2
What is Bullish/Bearish Breaker Block & How to Find It Easily Breaker blocks are easier to find than you think. In this article, I will share with you very efficient price models for the identification of Order Blocks and Breaker Blocks. You will learn their meaning, how to draw and use them in trading Smart Money Concepts SMC. Bullish Trend Model & Breaker Block. Let's start with an essential theory . Please, examine a following price model: In a classic bullish structure where the price consistently updates Higher Highs HH and Higher Lows HH, a bullish order block zone will be the area based on the last Higher How. I will explain how to draw that zone in the examples below. In some instances, a bullish order block zone will fail to deliver a bullish wave. Its bearish breakout will follow after its test instead. It will be a critical event that is called a market structure shift in Smart Money Concepts SMC. A formation of a new low will signify a violation of a bullish trend and a highly probable change of the market sentiment. A broken bullish order block zone will turn into a Bearish Breaker Block. The zone from where the next bearish wave will most likely follow. It will provide a very safe place to sell from. Market structure shift in a bullish trend is not a random event. It usually occurs after a test of a significant supply zone with a liquidity grab. It can help you to predict the change of the sentiment way before it happens. That's an example of such a price model on GBPAUD forex pair. We see a confirmed bullish liquidity sweep in uptrend after a test of a historic supply zone. A bearish wave followed then and a bullish order block zone was broken. To draw Order Block Zone, I picked the level of the last higher low as its lower boundary and a low of a body of that candlestick as the upper boundary. After a breakout, it turned into a Bearish Breaker Block. A bearish continuation occurred after its test. Bearish Trend Model & Breaker Block. Please, check this model: In a classic bearish structure where the price consistently updates Lower Lows LL and Lower Highs LH, a bearish order block zone will be the area based on the last Lower High. In some instances, a bearish order block zone will fail to deliver a bearish wave. Its bullish breakout will follow after its test instead. It will be a significant event that is called a bullish market structure shift in Smart Money Concepts SMC. A formation of a new high will signify a violation of a bearish trend and a highly probable change of the market sentiment. A broken bearish order block zone will turn into a Bullish Breaker Block. The zone from where the next bullish wave will most likely follow. It will provide a very safe place to buy from. Market structure shift in a bearish trend is not a random event. It usually occurs after a test of a significant demand zone with a liquidity grab. That's a real example of such a price model on WTI Crude Oil. A bearish structure was violated after a test of a demand zone. A bearish order block was broken, and it turned into a Bullish Breaker Block Zone then. (Drawing a bullish order block zone, I picked the level of the last lower high as its upper boundary and a high of a body of that candle as its lower boundary ) A bullish movement followed after a deep test of that. A proper combination of structure mapping and liquidity analysis will help you to predict a market structure shirt and a breaker block creation before they happen. The models that I shared will help you to confirm bullish and bearish breaker blocks trading Forex or any other markets with Smart Money Concepts SMC ICT. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
Learn Profitable Doji Candle Trading Strategy (GOLD, FOREX) In the today's post, I will share my Doji Candle trading strategy. This strategy combines the elements of multiple time frame analysis, price action and key levels. Step 1 Analyze key levels on a daily time frame. Identify vertical and horizontal supports and resistances. Here are the key structures that I spotted on AUDUSD. Step 2 Look for a formation Doji Candle on a key structure. This rule is crucially important: we will trade only the Doji candles that are formed on key levels. From key supports , we will look for buying , and we will look for shorting from key resistances . Look at this Doji Candle that was formed on a key daily support on AUDUSD. Step 3 Look for a horizontal range on a 4h/1h time frames. Doji Candle signifies indecision . Quite often, you will notice the horizontal ranges on lower time frames when this candlestick is formed. Here is a horizontal range that was formed on a 4H time frame on AUDUSD after a formation of Doji. Step 4 Look for a breakout of the range. To sell from a key resistance, we will need a bearish breakout of the support of the range. That will be our bearish confirmation. To buy from a key support, we will need a bullish breakout of the resistance of the range. It will be our bullish signal. Here is a confirmed breakout of the resistance of the range with a 4H candle close above. That is our bullish confirmation on AUDUSD. Step 5 Buy aggressively or on a retest. After you spotted a confirmed breakout of the range, open a trading position aggressively or on a retest. Personally, I prefer trading on a retest. If you sell, a stop loss should be above the high of the range and your target should be the closest key daily support. If you buy, your stop loss should be below the low of the range and a take profit will be on the closest daily resistance. On AUDUSD, a long position was opened on a retest. Stop loss is lying below the lows. Take profit is the closest resistance. Here is how this great strategy works! Always patiently wait for a confirmation! That is your key to successful trading Doji Candle. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
4
September 28, Forex Outlook: What Can Traders Expect This Week?Welcome back, traders! In today’s video, we’ll be conducting a Forex Weekly Outlook, analyzing multiple currency pairs from a top-down perspective—starting from the higher timeframes and working our way down to the lower timeframes. Our focus will be on identifying high-probability price action scenarios using clear market structure, institutional order flow, and key confirmation levels. This detailed breakdown is designed to give you a strategic edge and help you navigate this week’s trading opportunities with confidence. 📊 What to Expect in This Video: 1. Higher timeframe trend analysis 2. Key zones of interest and potential setups 3. High-precision confirmations on lower timeframes 4. Institutional insight into where price is likely to go next Stay tuned, take notes, and be sure to like, comment, and subscribe so you don’t miss future trading insights! Have a great week ahead, God bless you! The Architect 🏛️📉
Education
by The_Archi-tect
2
Profitable Multiple Time Frames Smart Money Strategy For Trading In this post, I will share with you a very accurate and profitable SMC Smart Money trading strategy that combines top-down analysis, liquidity, imbalance, order block and inducement. Step 1 - Identify liquidity zones on a daily Liquidity zones are the areas on a price chart, where big players are placing their orders. From such areas, significant bullish and bearish movements initiate. Liquidity zones that are above the current price will be the supply zones, while the liquidity zones that are below the current price will be the demand zones. We will look for shorting opportunities from supply areas and for buying opportunities from demand zones. Here are the liquidity zones that I identified on EURJPY. Step 2 - Wait for a test of one of the liquidity zones Let the market test the liquidity zone. For buying, the price should reach a lower boundary of a demand zone. For shorting, the price should test an upper boundary of a supply zone. I underlined the exact levels that the price should test on EURJPY. Here is the test of the lower boundary of the demand zone. Step 3 - Look for inducement on an hourly time frame With the inducement, smart money make the market participants think that the liquidity zone that the price is testing doesn't hold anymore. When the price tests a supply area, an hourly candle close above its upper boundary will be a bullish inducement. With that, the smart money incentivize buying orders. When the price tests a demand area, an hourly candle close below its lower boundary will be a bearish inducement. With that, the smart money incentivize selling orders. The price closed below a lower boundary of a demand zone on EURJPY on 1H time frame. Step 4 - Look for imbalance on an hourly time frame After a violation of a supply area on an hourly time frame, look for a bearish imbalance. Bearish imbalance is a strong bearish candle with wide range and big body. With that candle, the market should return within a supply zone and closed within or below that. After a violation of a demand area on an hourly time frame, look for a bullish imbalance. Bullish imbalance is a strong bullish candle with wide range and big body. With that candle, the market should return within a demand zone and closed within or above that. Here is the example of a bullish imbalance on EURJPY. After a bearish inducement, the price formed a high momentum bullish candle and closed within the demand zone. The imbalance signify that a liquidity zone violation was a trap . With that, smart money simply was trying to grab the liquidity. That will be a signal for you to open an order. Step 5 - Look for an order block After the formation of the imbalance, the market becomes locally week and quite often corrects to an order block. Order block will be the closest hourly liquidity zone. After a formation of a bearish imbalance, look for a supply zone on an hourly time frame. That will be your perfect zone to sell . After a formation of a bullish imbalance, look for a demand zone on an hourly. That will be your area to buy from. Here is the order block on EURJPY. Step 6 - Set a limit order Set a sell limit order within a supply area after a formation of bearish imbalance on an hourly time frame. Set a buy limit order within a demand area after a formation of a bullish imbalance on an hourly. Here is your buy entry level on EURJPY. Step 7 - Select the target If you sell, your target should be the closest daily structure support: horizontal or vertical one. If you buy, your target should be the closest daily structure resistance: horizontal or vertical one. In our example, our closest structure resistance if a falling trend line. Step 8 - Set stop loss If you sell, stop loss will lie above a bullish inducement. If you buy, stop loss will lie below a bearish inducement. Here is a perfect point for a stop loss for a long trade on EURJPY. Step 9 - Trade Let the price trigger your entry, and then be prepared to wait. It took many days for EURJPY to reach the target. Trading Tips: 1. Make sure that you have a positive reward/ratio. It should be at least 1.2 2. Risk no more that 1% of your trading account per trade Being applied properly, that strategy shows 70%+ accuracy. Try it by yourself and let me know your results. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
The Only Breakout / Fakeout Technical Indicator You Need This technical indicator will help you to avoid every fakeout on Forex, Gold or any other market and will accurately confirm a valid support or resistance violation. It is absolutely free and it is available on TradingView, MetaTrader 4/5 or any other trading terminal. This indicator is very easy to use, and you can set it up in just 1 click. Discover a proven way to identify traps. This technical indicator is called On Balance Volume. To add that to your chart simply open indicators window on TradingView and search it. By clicking on that, it will immediately start working. You can find it on the bottom of the chart. And here is what this free indicator does: On forex market, this indicator measures tick volume - the number of a price change for a certain period. Then it compares a current price close with a previous one. If a current price is higher than previous, it takes a previous volume and adds that to a current volume, making the indicator rise . If a current price is lower than previous, it takes a previous volume and subtracts a current volume from that, making the indicator fall . If a current price is the same as the previous, the indicator remains unchanged . And that indicator can be used to spot fakeouts and traps. The idea is that valid bullish and bearish breakouts should be accompanied by volume spikes. If price breaks resistance but OBV doesn’t make a new high, it’s likely a fake breakout. Because a violation occurs with low volumes. Examine a breakout candle of a horizontal resistance on EURUSD forex pair. The market successfully closed above that. On balance volume set a new higher high, confirming a strength of this up movement. The market continued rising then. Now compare a previous breakdown to a bullish violation of a resistance area on AUDUSD. Though, a candle close above that, the indicator sets a lower high, creating a divergence . It indicates a price manipulation by smart money. And this breakout was false and On Balance Volume helped us to predict that. Now let's study bearish breakouts and fakeouts. A key horizontal support was broken on USDJPY forex pair. A bearish candle successfully closed below that. On Balance Volume confirms this bearish violation by a formation of a new local Lower Low. It signifies that this breakout occurred with a spike of selling activity. And the price went way lower then. A bearish violation of a support cluster on NZDCAD is not confirmed by On Balance Volume. While a candle successfully closed below the underlined area, the indicator sets a Higher Low. That is an important warning that this violation can be a fakeout. You can see that it was a bearish trap. Smart money were manipulating the market, making the price violate that support. The absence of a selling volumes spike suggested that. As you can see, this indicator is very simple to use. Integrate that in your trading plan. It will dramatically increase the accuracy of your breakout trading and fakeout avoidance. It will help you find traps and expose manipulations. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Education
by VasilyTrader
8
Review of Gold's expected rally and why we entered long todayLook at this chart and understand why it was the only move that was likely to happen today: Firstly we already corrected all of the range down (balanced), that was the first key that we're potentially going to correct the drop next. This is how markets work; correction of imbalances and continuations of the master trend direction. The master/macro trend target is always the easiest no brain target for those of us who actually make money trading. Anytime we correct imbalances, we are looking to buy, only degenerates are looking for the short target and never realize where it is or when it's been hit--hello? It's the imbalanced ranges below, write this down: When we are bullish, price will only go down to correct the major imbalanced ranges and then continue bullish. There is no supply zone until the large wick range. I will help you understand this stuff tirelessly even for free although I charge a $100/mo mentorship I don't care if people pay me, I just want you to see the easy truths about the chart most don't see 🫡
PEPPERSTONE:XAUUSDEducation
by HollywooodTrades
How to Find Order Block on Any Forex Pair & Gold (SMC Basics) Order block is easier to find than you think. I am going to reveal 2 simple price models that will help you find strong bullish and bearish order block zones on any Forex pair. Discover how to identify OB and how to draw it properly in Smart Money Concepts SMC trading. To effectively spot Order Block, you will need to learn basic Structure Mapping. To find a bullish order block, you will need to learn by heart a classic bullish trend model. According to the rules, that market is trading in a bullish trend if the price consistently updates Higher High HH and Higher Lows HL. Such a price action confirms an uptrend . The last higher low in that will be your Bullish Order Block. Let me share with you a definition of a bullish order block so you could better understand its deep meaning. Bullish order block is a significant price zone or a level where large market players (banks, institutions, hedge funds) have previously placed a high volume of buy orders, creating a strong imbalance in demand. And what is a proof of this strong demand? A consequent break of structure and a formation of a new higher high demonstrate a clear strength of a bullish wave that was initiated because of the activity of Smart Money. As the market continues updating Higher Highs , remember to update Order Block. It will strictly be based on the LAST Higher Low. Examine a price action on NZDUSD forex pair on a daily time frame. The trend is bullish and our Order Block will be based on the last Higher Low. To properly draw Order Block zone, its low should be based on the lowest low of a Higher Low. Its high should be based on the lowest daily candle close above a low of a Higher Low. We will assume that huge volumes of buying orders will accumulate within that zone. That area will provide a safe zone for us to buy the market from. Alternatively, its violation will signify an important shift in a market sentiment. To find a bearish order block, you will need to understand a classic bearish trend model. According to the rules, that market is trading in a bearish trend if the price consistently updates Lower Lows LL and Lower Highs LH. Such a price action confirms a downtrend . The last lower high in that will be your Bearish Order Block. And here is what exactly is a bearish order block. Bearish order block is a significant price zone or a level where large market players - Smart Money have previously placed a high volume of sell orders, creating a strong imbalance in supply. And what is a proof of this strong supply? A consequent break of structure and a formation of a new lower low demonstrate a clear strength of a bearish wave that was initiated because of the activity of Smart Money. As the market continues updating Lower Lows, remember to update Order Block. It will strictly be based on the LAST Lower High. Please, check a price action on NZDCHF forex pair. The market is trading in a downtrend. Our bearish order block will be based on the last lower high . The high of this zone will be the highest high of the last lower high. Its low will be the highest daily candle close below the last lower high. That zone will be a critical resistance. Large selling volumes will be distributed within. Once that area is tested, we can sell the market from that. Alternatively, its bullish violation will signify a significant shift in the market sentiment. Of course, these 2 models will not reveal all the order block on a price chart, BUT it will show you one of the most significant ones that you can rely on for safe entries for your trades. Just learn a structure mapping in smart money concepts and use that you find powerful order block zones on any forex pair. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
PEPPERSTONE:XAUUSDEducation
by VasilyTrader
11
My EU 2nd Entry Learn!OHLC CONCEPT or OLHC CONCEPT. This reversal concept implies that a trader can easily project the move of any higher timeframe Candle by catching the Open of the candle, it's mitigation to an area of Interest or Sweep of Liquidity creating the High/ Low , targeting the next Area of Interest(AOI) or Liquidity (liq) creating the Low/ High and the Closing at Market Price. This Concept works on any Higher timeframe Candle i.e 4hr, Daily, Weekly & Monthly candles. The aim is to look for your entry setup on the Lower timeframe which is (Sweep of Liquidity while mitigating Area of Interest (AOI), Market Structure shift, and retracement to mitigate Imbalance, OB, or Breaker and targeting AOI's or Liquidities confirming your Bias. Take continuous entries and stack as price goes in your direction while taking partial profits too. Go to your charts and practice this. See you all later. :)
Education
by sharpdennis10
Indecision - The Human Experience of Being A DojiContext : Daily Chart ETHUSD. Uptrend intact. Price sitting right on the trend line. Price consolidating into a series of dojis. Imagine this scenario. You have a plan. You're a trend trader. You're looking to get long. You start to observe the context… We’re into September. Tech showing signs of correcting. Gold heading up. This chart... right here, right now is consolidating. And so you experience a little flicker. A small niggle … There it is. The voice of doubt. "I should get long but maybe this is the one that gives way". You feel a moment of indecision. And you’re stuck frozen The human version of a doji. Indecision has a cost and takes a toll. Not just in lost opportunity BUT in energy and confidence. A simple practice to help guard against this: Pre-decide the conditions. Write down before you enter what tells you to stay in and what tells you to step aside. Separate the signal from the noise. Notice the flicker of doubt, but act on your plan, not the passing thought. Doubt will always show up. The edge comes from knowing what you’ll do when it does.
COINBASE:ETHUSDEducation
by soda8888
7
How to Trade Morning Star and Evening Star Candlestick Patterns Learn to identify and trade Morning Star and Evening Star candlestick formations using TradingView’s charting tools in this detailed tutorial from Optimus Futures. Morning and Evening Stars are powerful reversal patterns that often mark turning points in the market. Recognizing them can help you anticipate when momentum is about to shift—and take advantage of new trading opportunities. What You’ll Learn: • How Morning Stars signal bullish reversals at the end of a downtrend • How Evening Stars indicate bearish reversals after extended uptrends • The three-candle structure of each pattern and what it means for trader psychology • Why indecision candles (like dojis) play a critical role in confirming momentum shifts • Using volume confirmation to validate Morning and Evening Star setups • The importance of context: spotting these patterns at major support and resistance levels • Setting effective stop losses at the high/low of the pattern for risk control • Advanced entry tactic: waiting for retracement after confirmation to optimize risk/reward This tutorial may help futures traders and technical analysts who want to harness candlestick reversal signals to identify potential market turning points. The strategies covered could assist you in creating structured setups when strong buying or selling pressure appears at key chart levels. Learn more about futures trading with TradingView: optimusfutures.com Disclaimer: There is a substantial risk of loss in futures trading. Past performance is not indicative of future results. Please trade only with risk capital. We are not responsible for any third-party links, comments, or content shared on TradingView. Any opinions, links, or messages posted by users on TradingView do not represent our views or recommendations. Please exercise your own judgment and due diligence when engaging with any external content or user commentary. This video represents the opinion of Optimus Futures and is intended for educational purposes only. Chart interpretations are presented solely to illustrate objective technical concepts and should not be viewed as predictive of future market behavior. In our opinion, charts are analytical tools—not forecasting instruments. Market conditions are constantly evolving, and all trading decisions should be made independently, with careful consideration of individual risk tolerance and financial objective
COMEX:GC1!Education
by Optimus Futures
Break of Structure VS Liquidity Grab. How to Identify Valid BoS The main problem with break of structure trading is that you can easily confuse that with a liquidity grab. But don't worry. There is a secret SMC price model that will help you to confirm a break of structure in a second. Learn smart money concepts trading secrets and a simple strategy to trade break of structure on any forex pair. Let's study a break of structure that I spotted on AUDUSD forex pair. We see that the market is bullish on a daily time frame and the price has just violated a previous high with a break of structure. The issue with that is the fact that such a violation can easily be a liquidity grab and a bullish trap . Buying the market immediately after a BoS, we can incur a huge loss . We need something that would help us to accurate validate that. Fortunately, there is a simple price model in SMC that will help. After you spotted a break of structure on a daily time frame, use a 4h time frame for its validation. After a BoS on a daily time frame, the market usually starts retracing , setting a new local high. To confirm that it is not a trap, you will need a break of THAT structure on a 4H time frame. It will increase the probabilities that the entire bullish movement that you see on a daily is not a manipulation. Here is what exactly we need. After the price violated a daily structure and closed above that, we see a minor intraday retracement on a 4h time frame. A bullish violation of the last high there is our BoS confirmation and a clear indicator of the strength of the buyers. You can execute a buy trade, following a simple strategy then. Set a buy limit order on a retest of a broken high on a 4H, a stop loss should be below the last higher low, a take profit is based on the next supply zone on a daily. To avoid the traps, a single time frame is not enough for profitable trading break of structure. Learn to integrate multiple time frames in smart money concepts trading. It will help you make thousands of pips weekly. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
23
Mastering indecision candlestick patterns - How to use it!In this guide I will explain the indecision candlestick patterns. The next subjects will be discussed: - What are indecision candlestick patterns? - What is the doji? - What is the spinning top? - What is the high wave candle? What are indecision candlestick patterns? Indecision candlestick patterns are formations on a price chart that suggest uncertainty in the market. They appear when neither buyers nor sellers have full control, meaning the price moves up and down during the trading period but closes near where it opened. This creates a candle with a small real body and often long wicks on either side, showing that the market explored both higher and lower prices but ended up not committing strongly in either direction. These patterns are often seen during periods when traders are waiting for more information before making bigger moves. What is the doji? One of the most well-known indecision candles is the doji. A doji forms when the opening price and the closing price are almost identical, resulting in a very thin body. The wicks, which show the highest and lowest prices of the period, can be long or short depending on market activity. A doji tells us that buying and selling pressure were almost equal, which can happen during pauses in trends or before major reversals. What is the spinning top? Another type is the spinning top. A spinning top also has a small body, but unlike the doji, the open and close are not exactly the same. The wicks on both sides are typically of similar length, indicating that the market moved both up and down significantly before settling close to the starting point. This pattern reflects hesitation and a balanced struggle between bulls and bears. What is the high wave candle? The high wave candle is a more dramatic version of indecision. It has a small real body like the other patterns but features very long upper and lower shadows. This means the market swung widely in both directions during the period, but ultimately closed without making strong progress either way. The high wave candle signals strong volatility paired with uncertainty, which can often precede sharp moves once the market chooses a direction. When you see these types of candles, they are essentially the market saying “I’m not sure yet.” They often appear at turning points or before big news events and can warn that the current trend may be losing strength. However, they are not guarantees of reversal or continuation on their own. Traders usually combine them with other technical signals or chart patterns to confirm whether the market will break out in one direction or the other. ------------------------- Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. Thanks for your support. If you enjoyed this analysis, make sure to follow me so you don't miss the next one. And if you found it helpful, feel free to drop a like 👍 and leave a comment 💬, I’d love to hear your thoughts!
TRADENATION:BTCUSDEducation
by Youriverse
53
What Is the Evening Star Candlestick Pattern?What Is the Evening Star Candlestick Pattern? Candlestick patterns offer traders a way to read price action and spot potential changes in momentum. One notable pattern is the evening star, a three-candle formation that signals the start of a possible downtrend. This article breaks down what the evening star looks like, how it works, and how traders typically use it. What Is the Evening Star Candlestick Pattern? The evening star is a three-candle pattern that traders watch for after a strong upward move. It’s considered a bearish reversal pattern, signalling that bullish momentum is fading. The setup consists of three candles: - The first candle is a large bullish candle—it shows a clear upward direction. - The second is much smaller. This middle candle—the star—reflects hesitation. Buyers and sellers are more balanced, and the market’s pace slows. - The third candle acts as confirmation. It’s a solid bearish candle that closes deep into the body of the first. The middle candle also often gaps up from the first, especially in stocks or indices, but gaps aren’t essential. What matters is the sequence: strength, indecision, reversal. The further the final candle closes into the body of the first, the stronger the pattern is considered. Evening stars can appear on any timeframe, but many traders look for them on the daily chart where the signals tend to be clearer. It’s not a pattern to act on blindly—but in the right context, such as after a sustained bullish trend, it’s a useful sign that buyers might be losing control. The Psychology Behind the Evening Star It may be always useful to frame the formations like the evening star candle pattern in the context of market psychology. Here, the first bullish candle signals buyer confidence. They drive prices higher and the candle closes strongly. The next candle is smaller, suggesting that momentum is slowing. Buyers aren’t pushing as hard, and sellers start to step in. When the third candle closes strongly bearish, it confirms that sentiment is changing. Sellers are now in control, and previous buying strength fades. This shift often happens at the end of an extended upward movement, where fewer buyers are willing to bid the price up and begin closing positions. How Traders May Use the Evening Star Candlestick Formation The evening star may be a useful part of a trader’s toolkit, especially when it lines up with other pieces of analysis. Opening and Closing a Trade The evening star pattern candlesticks become more meaningful when they appear around known areas of resistance or previous swing highs. If the market’s been edging closer to a clear level—like a horizontal resistance line, Fibonacci retracement, or trendline—and then an evening star forms, it can add weight to the idea that the rally is weakening. Some traders also watch for patterns forming near round numbers or psychological price points. If traders notice an evening star pattern occurring at a resistance level, they typically look for confluence using another indicator. The RSI might signal a bearish divergence, the price may be piercing an upper Bollinger Band, or it could also be bouncing from a 200-period EMA. Volume can be another factor—rising volume on the third candle can signal more participation behind the selling. Once a trader has confidence that a bearish reversal is likely underway, they often use the candles following the third candlestick as an entry trigger. A stop loss might be set above the middle candle’s high, while take-profit targets might be placed at an area where a bullish reversal might occur, like a support level. Some might simply trail a stop to take advantage of the strong downtrend or exit when an indicator/candlestick pattern signals that bearish momentum is fading. Marking Potential Trend Shifts Some traders use the evening star to flag potential trend exhaustion. While they may not act on the signal (e.g. they are bullish overall and not willing to take shorts yet), the presence of an evening star can suggest the uptrend is vulnerable. They may prepare to buy a pullback, partially close an existing long position, or start watching for further bearish signals. Example Trades In the example above, we see a slight rally in AUD/USD in a broader downtrend (off-screen). Price initially pierces the upper Bollinger Band, with slight rejections visible in the upper wicks. After a brief dip, the market retests highs and finds resistance. At this point, the pattern forms, with confirmation coming from relatively weak candles afterwards. Price then closes through the midline of the Bollinger Bands, providing full confirmation of a bearish reversal. In this second example, we can see a failed evening star. Here, Amazon (AMZN) gaps up over two consecutive days. That leads the 50-period EMA to slope up and cross above its 200-period counterpart—a clear bullish signal. In this context, it may be better to ignore the signal. The market continues to move higher in an uptrend with consecutive bullish gaps, confirmed by the EMA crossover, indicating a lower probability the pattern will work successfully. Like any pattern, the evening star is expected to be more reliable when contextual factors align, such as in the AUD/USD example. Strengths and Limitations of the Evening Star The evening star has its strengths and limitations. To rely on the evening star in trading, it’s worth being aware of both sides. Strengths - Clear visual structure: The three-candle formation is straightforward, especially on higher timeframes. - Logical: The pattern reflects an evident change in momentum that shifts from buying to selling pressure. - Useful in a wider toolkit: When combined with other forms of analysis (resistance levels, overbought signals, strong volume), it can help traders pinpoint potential turning points and offer an entry. Limitations - Requires confirmation: On its own, the pattern doesn’t confirm a downtrend. It’s a potential signal, but not a guarantee. - Less reliable in choppy markets: In sideways or low-volume markets, evening stars usually produce false signals. - Subject to interpretation: Candle size, wicks, and placement can vary, which means not every setup is clean or tradable. The Bottom Line The evening star pattern offers traders a structured way to identify potential turning points in the market. Its three-candle formation makes it popular among those seeking greater confirmation than single-candle patterns. FAQ What Does an Evening Star Candle Pattern Mean? It’s a three-candle formation that appears at the end of a solid uptrend. An evening star in trading indicates a potential bearish reversal or a short-term downward movement depending on market conditions and the timeframe used. Is the Evening Star Bullish or Bearish? The evening star is considered a bearish pattern that shows buyer exhaustion. A third long bearish candle reflects a change in the market sentiment. How Do an Evening Star and a Hanging Man Differ? The evening star is a three-candle pattern showing a gradual change in momentum. The hanging man is a single-candle pattern, with a small body and long lower wick. Both are bearish reversal signals, but the hanging man typically requires greater confirmation. How Do a Shooting Star and an Evening Star Differ? The shooting star is a one-candle pattern with a long upper wick and a small body that signals rejection at higher prices. The evening star is a three-candle pattern. Both formations reflect a shift from bullish to bearish sentiment. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1