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Candlestick Analysis

Why Spotify Stock Is Set to Drop Big TimeI am going to say something that might hurt a few feelings today. If you’re buying Spotify stock right now after this rally… price action is already shaking its head. This stock just had a strong rally, supply is stepping in, and smart money is doing what smart money always does: selling into strength. Let me show you why buying Spotify stock now is suicidal, and why patience — yes, boring patience — will likely be rewarded much lower. Expecting the stock to drop big time, still 50% left to drop until the quarterly demand level at $200 is reached. Bearish long-term option strategies is the way to go.
NYSE:SPOTShort
by AlfonsoMoreno
Downdraft in DoorDash?DoorDash hit a record high in late 2025, but now it may face downside. The first pattern on today’s chart is the price action on October 16. The delivery stock hit a record high, but was rejected and closed under the previous session’s low. Prices remained below the outside day, confirming it as a bearish reversal pattern. Second, DASH gapped lower on November 6 following quarterly results. It tried to rebound but was rejected six weeks later. Next, the 50-day simple moving average (SMA) had a “death cross” below the 200-day SMA in late December. That may suggest its long-term direction has turned bearish. Finally, MACD is falling and the 8-day exponential moving average (EMA) is below the 21-day EMA. Those signals may reflect a short-term downtrend. TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at www.TradeStation.com . Before trading any asset class, customers must read the relevant risk disclosure statements on www.TradeStation.com . System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors. Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges. TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit www.TradeStation.com for further important information explaining what this means.
NASDAQ:DASH
by TradeStation
Nifty Analysis EOD – January 20, 2026 – Tuesday🟢 Nifty Analysis EOD – January 20, 2026 – Tuesday 🔴 100-Day Low Breach: Nifty Panics as 25,500 Support Crumbles. 🗞 Nifty Summary The Nifty opened with a misleading 30-point Gap Up, but the bullish sentiment was vaporized within the first minute. Mirroring yesterday’s bearish intent, the index slipped 150 points from the first tick. While bulls attempted to form a base around 25,435, the 25,500 level acted as a massive supply barrier, repelling every recovery attempt. The subsequent breach of the November 7, 2025, swing low triggered a wave of panic selling that no support level could arrest. Nifty plummeted to test 25,180, marking a deep low of 25,171.35. Closing at 25,232.50, the index has recorded its lowest close in the last 100 days, losing -353.00 points (-1.38%). The primary catalyst for this carnage was a classic structural failure; once key supports were breached, the vacuum created led to a complete “washout” of long positions. 🛡 5 Min Intraday Chart with Levels 🛡 Intraday Walk The day was a masterclass in “Momentum Expansion.” The initial gap-up was a clear trap, and the 150-point slide set a grim tone for the session. The mid-day attempt to hold 25,435 was crushed by the overhead supply at 25,500. As soon as the “Line in the Sand” from November ‘25 was crossed, the algorithmic selling took over. The index is now trading at the bottom band of the channel on the Daily Time Frame. After such a massive 414-point range expansion, the market is severely stretched, suggesting that while the bias is bearish, a “dead cat bounce” or a narrow consolidation phase is likely in the upcoming session. 📉 Daily Time Frame Chart with Intraday Levels 🕯 Daily Candle Breakdown Open: 25,580.30 High: 25,585.00 Low: 25,171.35 Close: 25,232.50 Change: −353.00 (−1.38%) 🏗️ Structure Breakdown Type: Strong Bearish Momentum candle. Range: ≈ 414 points — Very high volatility; major range expansion. Body: ≈ 348 points — Aggressive selling with almost no intraday recovery. Upper Wick: ≈ 5 points — Total lack of buying interest at the open. Lower Wick: ≈ 61 points — Late short-covering from the extreme lows. 📚 Interpretation The candle structure represents a complete breakdown of market confidence. Opening at the high and closing near the low (despite a minor bounce) confirms that the bears are in absolute control. The breach of the 100-day closing low and the November swing low confirms that the medium-term structure has turned bearish. Distribution is at its peak. 🕯 Candle Type Strong Bearish Momentum Candle — Indicates decisive selling dominance. This is a “breakout” candle from a larger structural range; typically leads to further downside unless a sharp reversal occurs. 🛡 5 Min Intraday Chart ⚔️ Gladiator Strategy Update ATR: 230.62 IB Range: 150.40 → Big Market Structure: ImBalanced Trade Highlights: 12:41 Short Trade: Target Hit (R:R 1:6.76) Trade Summary: The setup was a textbook “Narrow CPR” play. Despite the Big IB, the combination of an Important Level Breakout and extreme bearish sentiment supported a high-conviction trade. The sustained fall allowed the strategy to capture a massive 1:6.76 R:R, effectively leveraging the panic selling. 🧱 Support & Resistance Levels Resistance Zones: 25380 25430 25480 ~ 25495 25550 25605 Support Zones: 25270 25180 ~ 25145 25060 25000 ~ 24970 🧠 Final Thoughts “Panic is the harvest of broken levels.” The Nifty has reached the bottom of its daily channel, and the RSI is likely approaching oversold territory. For tomorrow, expect a decrease in volatility with a smaller range movement. We might see 25,060 act as a temporary floor, or potentially triggering a “dead cat bounce” back toward the 25,380 resistance. Regardless of the bias, we will wait for the Initial Balance (IB) to form before committing to any intraday actions. The strategy is to respect the trend but be wary of a sharp, low-volume bounce from the channel extremes. ✏️ Disclaimer This is just my personal viewpoint. Always consult your financial advisor before taking any action.
NSE:NIFTY
by kzatakia
Long trade Pair EURJYP Mon 19th Jan 26 9.00 am (NY time) Entry 183.754 Profit level 184.282 (0.28%) Stop level (0.067%) RR 4.29 🧠 Sentiment & Market Narrative — EURJPY (Buy-Side Bias) Market sentiment has shifted bullish, with EURJPY transitioning from sell-side delivery into buy-side expansion. Price previously completed a sell-side liquidity run below prior session lows, inducing short participation at a discount. This move failed to gain continuation, signalling absorption and accumulation rather than sustained bearish intent. The subsequent bullish displacement and reclaim of internal structure confirmed a change in order flow. From a session perspective: Tokyo provided the initial liquidity sweep and range compression. London confirmed the reversal with strong bullish follow-through from the discount. New York acted as the continuation engine, driving price back into premium. Price is now trading above equilibrium, with upside draw aligned toward unmitigated buy-side liquidity and higher-timeframe inefficiencies. Pullbacks into FVGs and the 0.25–0.50 PD Array are viewed as re-accumulation, not distribution. Unless price re-accepts below the discounted demand zone, sentiment remains risk-on, favouring buy-side continuation.
Long
by davidjulien369
Short trade Sell-side trade Pair BTCUSDT Mon 19th Jan 26 5.00 pm LND Session PM Entry 92959.3 Profit level 90720.9 (2.40%) Stop level 93335.0 (0.40%) RR 5.96 Sentiment & Market Narrative — BTCUSDT (Sell-Side Bias | London PM) Market sentiment during the London PM session was bearish, with BTC firmly positioned in a distribution → sell-side delivery phase. 15min TF overview Earlier in the day, price completed a buy-side liquidity sweep into prior highs and premium PD Arrays. This upside move failed to achieve acceptance, signalling exhaustion rather than continuation. As London PM unfolded, price repeatedly rejected premium levels, confirming that strength was being sold into. Key sentiment drivers during London PM: Failure to hold premium pricing after the liquidity run Rejection from internal resistance and unmitigated FVGs Bearish displacement confirming a shift in intraday order flow London PM acted as the transition window, converting earlier distribution into active downside delivery, with price beginning its draw toward sell-side liquidity and inefficiencies resting below. This behaviour reflects a risk-off environment, where rallies are used for short positioning, not accumulation. Unless BTC reclaims and holds above the prior range high and premium PD Arrays, sentiment remains sell-side favoured, with a continuation lower being the higher-probability outcome.
Short
by davidjulien369
GBPUSD – Major Event Risk on the HorizonIt’s hard to deny there is a lot going on right now in financial markets, however in terms of the world of G7 FX the macro-outlook has been decidedly mixed with conflicting drivers working against each other to keep GBPUSD in a relatively tight range between 1.3350 and 1.3550. After a brief initial push to the topside at 1.3568 (January 6th) in the first few trading days of 2026, a resurgence of the US dollar towards the back end of last week, supported by resilient US data, led GBPUSD to probe the bottom end of its range, culminating in a gap open in Asia yesterday to register a low of 1.3339. That move was again short lived, with traders preferring to sell US dollars again in response to President Trump’s weekend threat to impose new trade tariffs on imports of any European countries, including the UK, opposing his plans to buy Greenland. The basis being that retaliatory tariff moves from the EU/UK could weaken the US economy. Now, looking forward, event risk could be higher than usual, with numerous events scheduled for tomorrow (January 21st) that could spark a much more volatile reaction in GBPUSD. The first is the next UK CPI release at 0700 GMT. A lower than expected reading could renew hopes for the Bank of England to speed up their current pace of interest rate cuts to support a weak economy, a move which could weigh on GBP. However, a higher reading could mean the opposite. Then, later in the day President Trump is due to speak from the World Economic Forum in Davos, Switzerland. It is anticipated that he will initially concentrate on laying out his latest plans for easing cost of living issues for US households, but he may find it hard not to comment on the escalating trade tensions with European allies, provide further insight into who will be the new Fed Chair, Kevin Hassett or Kevin Walsh, as well as discuss the current political challenges his administration are making to the independence of the Federal Reserve, all of which could impact the US dollar side of the GBPUSD currency pair. Importantly, on Wednesday evening, the US Supreme Court is expected to provide their guidance on the legality of President Trump’s authority to sack Federal Reserve Governor Cook. The outcome of this hearing could have a significant impact on FX markets, especially if the top US court are seen to be siding with the President. With so much to consider, there is the possibility that the relative calm of FX markets, and GBPUSD in particular, seen at the start 2026 could be shattered, so being prepared to react to wider directional moves could be beneficial. Technical Update: Correction Themes Ending? Within Technical Analysis, and especially when using Fibonacci retracements, it’s generally accepted that a correction in an uptrend, or a recovery in a downtrend, can retrace at least 38.2% of the prior move. In an uptrend, this means a pullback in price can find its first support around the 38.2% retracement of the preceding advance. The daily GBPUSD chart above shows that after the strong advance from the November 4th low to the January 6th high, price weakness has emerged as a natural reaction to over‑extended upside conditions. Last weeks and initially yesterday’s decline tested 1.3363, which aligns with the 38.2% Fibonacci retracement of that prior move, and this level held on a closing basis which helped see a bounce in price to current levels around 1.3435 (0645 GMT). Traders may now be questioning whether the sell‑off from the January 6th high has completed its corrective phase, creating possibilities for fresh attempts to rebuild price strength. If so, identifying and monitoring this week’s important support and resistance zones could be pivotal, as their ability to hold or trigger reversals may heavily influence the next directional bias. Possible Support Levels: After testing and holding the first retracement level at 1.3363 on a closing basis, this now appears to be the initial support for GBPUSD. While this level holds on a closing basis, scope remains for renewed attempts to rebuild the uptrend. However, if the 38.2% retracement support at 1.3363 fails to hold on a closing basis, downside risks may increase. In Fibonacci terms, a break below 1.3363 could shift the support focus toward the 50% retracement at 1.3300, potentially even the 61.8% level at 1.3237. Potential Resistance Levels: While 1.3363 holds on a closing basis, the bias could still be toward further attempts at uptrend development. However, renewed strength may require closing breaks above resistance levels to suggest upside momentum. The Bollinger mid‑average at 1.3459 could be the next level to monitor. Closing breaks above the mid‑average at 1.3459, could encourage traders to look for further attempts to push toward higher levels. As the chart above highlights, the next resistance may then be marked by 1.3495, which is the January 13th high, possibly even 1.3568, which is the January 6th high. 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by Pepperstone
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