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Candlestick Analysis

Every Candle Has Psychology — Let’s Decode 3 of ThemHave you ever thought that every single candle carries its own psychology behind it? If not, don’t worry — that’s exactly what this educational idea is about. In this lesson, we’re going to break down the psychology behind three of the most popular candles, using a skeptical and practical approach. In this post, I’ll focus only on single-candle structures. If you’d like me to cover 2-candle or 3-candle patterns next, drop a comment and let me know. Let’s start with one of the most famous candles of all time: 🔨 1) Bullish/Bearish Hammer — What’s Really Happening? Assume we’re looking at a bullish hammer. Sellers tried everything they had to push price lower. But buyers stepped in aggressively, forced price back up, and closed the candle near the top. Psychologically, this tells us two things: Sellers didn’t just fail — they got liquidated Buyers gained confidence, and new long positions may fuel upside momentum The small upper wick represents the last desperate attempt by sellers. Best execution idea: Placing a stop-buy above the upper wick. Why? Shorts above the wick get liquidated The sellers’ final defense is removed Price can accelerate upward with momentum Win rate improves significantly when: The hammer forms after an uptrend Price is aligned with moving averages (e.g. SMA) 🔥 2) Bullish/Bearish Engulfing — Momentum Shift Confirmed This is one of my personal favorites. Sellers print a solid bearish candle. The next candle fully engulfs the previous body to the upside. What does this mean? Sellers gave up. Not gradually — instantly. Buyers completely dominate the zone, reclaiming all previous losses and closing strong. This candle is especially powerful when it forms: After a pullback into a box range Near a trendline After a support/resistance break Psychologically, it often signals: The start of the second impulse wave A strong continuation opportunity A very clean and reliable trigger when context supports it. 🧱 3) Marubozu — Beginning or End? Marubozu candles usually appear in two very different places: At the end of a trend At the start of a new trend Understanding which one you’re dealing with is critical. Signs of a trend-ending Marubozu: Price reaches major levels (e.g. above 4H Pivot Points) A long, aggressive trend precedes it RSI is overextended Price is near strong support or resistance Result? ➡️ Expect range or correction, not continuation. Psychology: Participants exhausted themselves just to reach the level — not to break it. Signs of a trend-starting Marubozu: Price was previously ranging or boxed Volume was compressed before the move RSI is far from extreme levels Orders accumulated inside the range The longer price stays inside a range, the more orders build up — and once released, the move becomes sharp and fast. 🧠 How to Trade Them Properly End-of-trend Marubozu: Take profits or close positions. Start-of-trend Marubozu: You can enter, but it’s smarter to: Wait for confirmation Enter on later triggers with smaller stop loss Improve R/R ratios By the way, I’m Skeptic , founder of Skeptic Lab. I focus on long-term performance through psychology, data-driven thinking, and tested processes. That’s it. Now get outta here.
OANDA:XAUUSDEducation
by SkepticLab
2
Nifty Analysis EOD – January 23, 2026 – Friday🟢 Nifty Analysis EOD – January 23, 2026 – Friday 🔴 106-Day Support Snaps: Bears Breach the Gate ? 🗞 Nifty Summary The Nifty started with a mild 27-point Gap Up, entering a high-voltage battle zone between 25,250 ~ 25,350. This 100-point range saw wild intraday swings that trapped both sides before a clear direction emerged. At 11:35 AM, the bulls finally gave up, leading to a decisive IB Low breakout. The bearish sentiment accelerated as the PDL (Previous Day Low) was breached at 1:15 PM. Despite a brief attempt to hold the 25,180 level, the index plummeted to its “last resort” support of 25,060, closing the session at 25,048.65 (-0.95%). This marks the lowest close in 72 sessions (106 days), dragging the index back to levels last seen on October 8, 2025. 🛡 5 Min Intraday Chart with Levels 🛡 Intraday Walk Today was a session of systematic distribution. The morning’s 100-point “tug-of-war” served as a distribution phase before the floodgates opened. Once the 25,250 floor was lost, the slide was relentless. The most significant technical event was the daily close below the channel’s bottom band. While the Jan 21 low of 24,920 still stands as the final line of defense, today’s close has significantly weakened the reversal thesis, shifting the focus toward a potential bearish continuation. 📉 Daily Time Frame Chart with Intraday Levels 🕯 Daily Candle Breakdown Open: 25,344.60 High: 25,347.95 Low: 25,025.30 Close: 25,048.65 Change: -241.25 (-0.95%) 🏗️ Structure Breakdown Type: Strong Bearish candle (Marubozu-style). Range: ≈ 323 points — High intraday volatility. Body: ≈ 296 points — Aggressive, unchecked selling pressure. Upper Wick: ≈ 3 points — Absolute lack of buying strength at the open. Lower Wick: ≈ 23 points — Minimal demand even at the extreme lows. 📚 Interpretation This is a high-conviction Bearish Breakdown candle. Opening at the day’s high and closing near the day’s low suggests that the market is in a “Sell on Rise” mode. The breach of the 106-day closing low indicates that the medium-term trend has been severely damaged, and the previous recovery attempts are being invalidated. 🕯 Candle Type Bearish Marubozu-Style / Breakdown Candle — Signals powerful downside momentum; further weakness is expected unless the index reclaims the channel bottom immediately. 🛡 5 Min Intraday Chart ⚔️ Gladiator Strategy Update ATR: 256.30 IB Range: 98.85 → Medium Market Structure: Balanced Trade Highlights: 10:18 Long Trade: SL Hit (Caught in the morning battle whipsaw). 11:38 Short Trade: Target Hit (R:R 1:1.73) (IBL Breakout). 13:16 Short Trade: Target Hit (R:R 1:3.03) (PDL Breakout). Trade Summary: A disciplined performance despite the early stop-loss. The strategy correctly pivoted to the short side as the balance shifted. The PDL breakout trade was the star of the session, capturing the vertical drop to the 25,060 support zone with a strong 1:3.03 R:R. 🧱 Support & Resistance Levels Resistance Zones: 25180 25270 25310 ~ 25335 25430 Support Zones: 25025 ~ 25000 24970 24920 (Critical Floor) 24840 24770 ~ 24740 🧠 Final Thoughts “The 24,920 level is now the only shield left.” The daily close below the channel is a major red flag. If the 24,920 low is breached in the upcoming sessions, the bullish reversal sign from January 21 will be completely negated. At that point, the structure will confirm a bearish continuation with targets shifting toward the 24,600 ~ 24,400 zone. Until then, expect the bears to maintain their grip, using every minor bounce as a supply window. ✏️ Disclaimer This is just my personal viewpoint. Always consult your financial advisor before taking any action.
NSE:NIFTY
by kzatakia
The Christmas Silver Finally Breaks FreeFor decades, Silver has celebrated the holidays the same way 🎄 Strong rallies. Rising excitement. And a familiar ceiling. 🎄 Christmas 1980 Silver climbed like a Christmas tree, fast, vertical, and emotional. The star was reached at the $50 level. And just like that, the lights went out ✨ The market peaked and collapsed back into its long-term range. 🎄 Christmas 2010 Different era. Same story. Once again, Silver rallied into Christmas, lit up the chart, and tested the same $50 level. The tree was tall. The star was bright. But price could not hold above it. ⭐️Why the Star at $50 Always Mattered That star was not decorative . It was structural . The $50 level represented: • decades of trapped supply • historical excess from prior cycles • a psychological round number the market respected Every Christmas rally stopped at the same place. Until this one❗️ 💫Christmas 2025: The Star Breaks Free This time, Silver did not just touch the star. It broke above it and held. The Christmas tree is no longer capped. The star has turned into a shooting star ☄️ That is what price discovery looks like. When a market escapes a level it failed to conquer for decades, it stops trading inside a box and starts trading into open space. 🌌Discovery Mode: The Sky Is the Limit With the ceiling gone, Silver enters a new phase. The blue zone ahead is not a prediction . It is a projection . A natural expansion toward the next psychological magnet near 100. Not because history says so. But because history no longer applies the same way once a multi-decade barrier breaks. Above the star, there is only sky. 💡The Takeaway Silver spent decades decorating the same tree. This Christmas, it finally stepped outside the room 🎄➡️🌌 And once a market reaches open skies, it does not ask for permission. It explores . 🧐So here’s the real question: Where do you see Silver next Christmas?🎄 And where do you think it will be ten Christmases from now? ⚠️ Disclaimer: This is not financial advice. Always do your own research and manage risk properly. 📚 Stick to your trading plan regarding entries, risk, and management. Good luck! 🍀 All Strategies Are Good; If Managed Properly! ~ Richard Nasr
OANDA:XAGUSDLong
by TheSignalyst
55
Long trade Pair MNQH Buyside trade Thu 22nd Jan 26 5.15 am LND Session AM Entry 25689.50 Profit level 25883.25 (0.75%) Stop level 25657.75 (0.12%) RR 6.1 MNQH (Micro E-mini Nasdaq-100, 15-Min) — Sentiment Summary Bias: Buy-side (intraday continuation) Session: London AM Date/Time: Thu 22 Jan 2026, 5:15 am RR: 6.1 Market Context: The broader structure remains bullish, with price holding above value after a prior corrective phase. The market recently swept sell-side liquidity into a well-defined discount zone, completing a reset before London participation. Narrative: Following the sell-side sweep, price showed bullish displacement and acceptance back above intraday value during the London AM window. We assume this signals institutional re-engagement and a shift back into continuation mode rather than further mean reversion. Liquidity & Order-Flow: Sell-side liquidity below recent lows cleared and defended Bullish FVG / value support respected on the retrace Buy-side liquidity remains resting above session highs, acting as the primary draw Execution Logic: The long entry at 25,689.50 aligns with discount mitigation + bullish continuation, with a tight stop below the defended low. Targets are positioned into buy-side liquidity, offering strong RR relative to risk. Invalidation: A decisive bearish displacement and acceptance back below the defended lows/value would invalidate the buy-side bias.
CME_MINI:MNQH2026Long
by davidjulien369
Long trade 5min TF overview Silver Futures (SI 5-Minute) — Sentiment Summary Bias: Short-term Buy-side (tactical continuation) Session: NY Session PM Context: HTF bullish → LTF pullback completed → continuation attempt Narrative: Silver remains structurally bullish on the higher timeframes following a strong impulsive expansion. After clearing sell-side liquidity and completing a corrective pullback, the price has now reacted positively from a discounted area, printing a sharp bullish response during the NY PM window. This suggests the market has completed its mean-reversion phase and is attempting to re-align with the dominant trend. Liquidity & Order-Flow: Sell-side liquidity below the range has already been cleared and defended Bullish FVGs have provided support on the retracement Acceptance above short-term structure implies buyers regaining control Execution Logic: The buy-side entry is justified after discount mitigation + bullish displacement, targeting a rotation back toward prior highs and remaining buy-side liquidity. Risk is clearly defined below the recent swing low, maintaining the setup's asymmetry and trend alignment. Invalidation: A decisive bearish displacement and acceptance below the defended lows would invalidate the buy-side bias.
COMEX:SI1!Long
by davidjulien369
NZDCHF LONG Market Structure Bullish on HTFs 3 Entry at both Weekly and Daily AOi Weekly Rejection at AOi Previous Weekly Rejection Point Daily Rejection at AOi Previous Daily Structure Point Daily EMA retest Around Psychological Level 0.46000 Touching EMA H4 H4 Candlestick rejection Rejection from Previous structure TP: WHO KNOWS! Entry 125% REMEMBER : Trading is a Game Of Probability : Manage Your Risk : Be Patient : Every Moment Is Unique : Rinse, Wash, Repeat! : Christ is King.
Long
by mobbie_zw
1
Nifty Analysis EOD – January 22, 2026 – Thursday🟢 Nifty Analysis EOD – January 22, 2026 – Thursday 🔴 The 25,430 Wall: Bulls Stumble After 185-Point Gap Up! 🗞 Nifty Summary Nifty delivered a session of extreme “exhaustion gap” dynamics. The day started with a massive 185-point Gap Up above the PDH, initially finding support at the breakout zone to test the 25,430 resistance. However, this level acted as a formidable supply wall, triggering a violent rejection. Nifty plummeted 258 points from its day high, breaching the IBL, PDH, and PDC to test the 25,180 support zone. After marking the day low, the index spent most of the session consolidating in a wide 100-point range. A desperate last-minute surge allowed Nifty to close at 25,289.90 (+0.53%). While the net change is positive, the red-bodied daily candle signals that bulls were unable to hold the premium opening, leaving the market in a state of high-tension indecision. 🛡 5 Min Intraday Chart with Levels 🛡 Intraday Walk The opening gap-up was a classic “bull trap” for those chasing momentum. The failure to sustain above 25,430 led to a cascading sell-off that wiped out the entire gap and then some. The 258-point drop was high-velocity, but the successful defense of the 25,180 base (PDC area) provided a platform for the late-session recovery. The last 15 minutes were crucial, with bulls attempting to reclaim the PDH. We are now entering a hyper-sensitive phase with a long weekend (Sat-Mon) and the Monthly Expiry on Tuesday. 📉 Daily Time Frame Chart with Intraday Levels 🕯 Daily Candle Breakdown Open: 25,344.15 High: 25,435.75 Low: 25,168.50 Close: 25,289.90 Change: +132.40 (+0.53%) 🏗️ Structure Breakdown Type: Bearish-bodied candle with long wicks (Net Bullish day). Range: ≈ 267 points — High intraday volatility and expansion. Body: ≈ 54 points — Red body indicates the close was lower than the gap-up open. Upper Wick: ≈ 146 points — Severe rejection from the 25,430 resistance zone. Lower Wick: ≈ 121 points — Strong buyer defense near the 25,168 lows. 📚 Interpretation Technically, this is a high-wave candle within a recovery trend. It confirms that sellers are still active at higher altitudes (25,430), while buyers are bottom-fishing near the 25,170 zone. The close above the open of previous sessions keeps the “revival” hope alive, but the lack of follow-through from the gap-up suggests bulls need more firepower to clear the supply. 🕯 Candle Type Bullish Recovery Candle with High-Volatility Wicks — Demand is present at lower levels, but overhead supply is capping the upside for now. 🛡 5 Min Intraday Chart ⚔️ Gladiator Strategy Update ATR: 248.93 IB Range: 133.30 → Medium Market Structure: ImBalanced Trade Highlights: 10:28 Short Trade: Target Hit (R:R 1:1.9) (IBL Breakout) 12:08 Long Trade: Trailing SL Hit (Mean Reversion) Trade Summary: The system correctly identified the shift in momentum after the 25,430 rejection. The IBL breakout provided a clean high-velocity move to the downside. The subsequent long trade attempted to capture the V-shape recovery but was caught in the afternoon consolidation, exiting on a trailing stop. 🧱 Support & Resistance Levels Resistance Zones: 25380 25430 (Major Ceiling) 25480 ~ 25495 25550 Support Zones: 25270 25180 ~ 25145 25060 (Last Resort) 🧠 Final Thoughts “The Monthly Expiry fuse is lit.” We are at a crossroads. Optimistic View: If Nifty opens between the current close and 25,430, a breach of the day high could trigger a massive short-covering rally toward 25,520+. The setup is screaming for a breakout if bulls can find the strength. Pessimistic View: If we fail to sustain above 25,430 again, expect a choppy “inside bar” session with the 25,060 level as the final line of defense. Given the long weekend and upcoming expiry, Friday will be a battlefield of volatility. Stay disciplined and watch the IB formation. ✏️ Disclaimer This is just my personal viewpoint. Always consult your financial advisor before taking any action.
NSE:NIFTY
by kzatakia
Long trade USDJPY — 18-Tab Colour Framework (Buy-Side Execution) Timeframe: 15 minutes Session: London AM Date: Thu 22 Jan 2026 Bias: Buy-Side USDJPY Bias: Buy-side (Continuation after accumulation) Market Context: Higher-timeframe structure remains bullish, with price trading above value and holding a premium structure. 🟦 TAB 1 HTF market context Higher-timeframe structure remains bullish Price trading above the HTF value No HTF bearish displacement present 🟩 TAB 2 — Macro Structure Expansion → consolidation → continuation Prior impulse leg respected No structural failure on higher TFs Narrative: Price accumulated during the Asian session before London engineered a sell-side sweep, clearing weak liquidity below the range. This was followed by clean bullish displacement, confirming institutional participation. Multiple bullish FVGs and a respected London order block provided support, allowing the price to re-price higher. Execution Logic: Entry was taken after FVG mitigation and bullish structure continuation, with the stop safely below the protected low. The trade aligned with London AM continuation statistics and avoided counter-trend risk. Targets & Expectation: Upside targets were aligned with buy-side liquidity above session highs, offering a favourable asymmetric risk-to-reward profile. Trade Summary USDJPY Buy-Side continuation after sell-side sweep and London displacement. Structure intact, liquidity aligned, and targets resting above.
Long
by davidjulien369
Gold - The Psychological $5000 Within Sight!Looking at the price action of Gold in early 2026, it could be said that traders didn’t need much reason to resume buying at higher levels, they were primed and ready to go! However, the nature of how key events initially played out to start this week seems to have emboldened them to push prices to even higher levels than may have been anticipated at that time. It must be remembered that Gold is one of the most popular safe haven assets to own at a time of crisis and the focus for traders across the first 3 trading days of this week, has been on President Trump’s combative stance toward Europe in his pursuit of making Greenland part of the United States, as well as Japanese PM Sanae Takaichi’s decision to call a snap election for February 8th, to bolster her mandate for greater spending and tax cuts, which increased investor angst over the fiscal situation for not only Japan but many other major economies. Looking at the chart for this week, the uncertainty created by these events led Gold to hit numerous records. After opening on Monday at 4627, prices went straight up, eventually registering its most recent all time high at 4888 on Wednesday morning, which interestingly brought the psychological $5000 barrier into sight for the first time. Now, prices did dip late yesterday to 4758 as President Trump, while at Davos, stepped back from imposing tariffs on European allies, saying that he had a framework in place for a future deal regarding Greenland. However, Gold has since recovered to trade 4830 at the time of writing (0700 GMT). Looking forward to the next 48 hours and early next week, where Gold moves next could be determined by the release of specific details of how this Greenland framework is to be structured and updates on whether Denmark and its European allies agree to its terms. There is also a US PCE Index release, the Fed’s preferred inflation gauge, to consider today at 1500 GMT, which could add to any future volatility for Gold depending on if it adds extra colour to the Federal Reserve’s interest rate outlook, given their next meeting is less than 7 days away on Wednesday January 28th. Gold Technical Update: Focus is on 5000, but 4893 May Also Be Important Gold’s acceleration through January has extended further this week, putting the psychological 5000 level on traders’ radar. Round numbers, especially when aligned with new all‑time highs or lows, often become key focal points, with closing breaks frequently acting as catalysts for additional price movement. However, for Gold, as the chart below highlights, there is perhaps a closer resistance level that may also warrant attention in upcoming sessions. This resistance sits at 4893, which is equal to the 100% Fibonacci extension. This level successfully capped Wednesday’s price advance and triggered a setback to the downside. If Gold is to mount a credible challenge toward the 5000 psychological barrier, a closing break above 4893 may be the first hurdle to overcome. A successful closing break above 4893 could keep the upward momentum intact, opening the way for a test of the 5000 level. A closing break above 5000 may then raise the prospect of further price strength toward 5084, which is the 138.2% Fibonacci extension, possibly even higher. Potential Support Levels: The extension resistance at 4893 does currently remain intact, and the latest setback from this level reinforces its role as the first possible resistance focus. While this level continues to cap Gold prices on a closing basis, downside pressure in the shiny metal may re emerge, opening the door for a retest of Wednesday’s 4758 low. A closing break below 4758 wouldn’t be an outright technical reversal for Gold, but it may leave the door ajar for further downside. If weakness extends, a deeper pullback toward 4657, which is the 38.2% retracement of this year’s range, could unfold, possibly even 4584, which is the deeper 50% mid-point support. The material provided here has not been prepared accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
PEPPERSTONE:XAUUSD
by Pepperstone
EUR/JPY Setup: What to Watch TodayThe EURJPY pair is currently consolidating at a significant intraday/daily resistance level. For a confirmed long position, I recommend observing a double bottom pattern on a 4-hour timeframe. A breakout above its neckline and a 4-hour candle closing above 185.60 would provide a reliable bullish confirmation. Our target for this movement would be 186.00. Conversely, if the price establishes a new lower low on the 4-hour timeframe, this particular setup would be invalidated.
Long
by linofx1