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QQQ Broken supports, Bearish behaviorQQQ met resistance in the ~227 area and a bullish engulfing signal has formed. Supports seem to have broken at the top. The MACD looks close to a bearish crossover. Due to unemployment and the rise of severity in the current climate, I estimate a downtrend to continue, though, from this, a short downtrend is the only thing I can draw from the technical analysis. Any thoughts? Trying to incorporate more aspects into the technical than solely candlesticks, MACD bearish crossing seems a bit grim here.
NASDAQ:QQQShort
by aubergine
1
Bitcoin Appears to Have Bottomed (simple analysis technique)Almost the entire cryptocurrency complex rebounded today, following two days of heavy selling. The appearance of one of my favorite (and only) chart patterns I pay attention to gives me the confidence to write this note. I've been trading the markets since 1995, and in that time I've realized that there is vastly more "technical analysis" that DOESN'T work, than does. One of the few things you can have confidence in the markets is the appearance of a HAMMER candlestick pattern following a sell off. And there seems to be a logical explanation for its formation. Markets are made up of small investors and huge institutional investors, market makers, hedge funds, and other large investors. These well-connected investors tend be better informed than those of us little guys. There is a vast amount of information available on the internet for the HAMMER candlestick, but I will briefly summarize it by saying that it is a candlestick with the open, high, and close, all within relatively close distance to each other, and a long tail for a LOW of the day. Essentially what is happening is large investors are purposefully forcing the price down taking out stops as it plunges. They are essentially picking up cryptocoins (or whatever it is you're trading) on the cheap! After they have accumulated the available supply at low prices, the price is forced back up. The more thinly traded the market, which cryptocurrencies are, the more the technique works. That's why I've highlighted a number of them here on the chart. It's a strategy works, and will continue to work--until it doesn't. ;)
BITSTAMP:BTCUSDLong
by MajorIndexSignals
Finally some USD Shorts to look forward toWeekly candlestick forms a nice hanging man. What makes this an interesting candlestick pattern is the way it gapped up before closing lower. Secondly, the price level of 94.76 is an unfilled down gap from 22/09/2003. The US Dollar has enjoyed a rally for quite some months, to the point that USD long position has become a boring proposition. So we're looking for a change of trend. Best course of action is to wait for this week's candlestick to close bearish for confirmation or look for daily charts bearish candlestick pattern for an earlier confirmation.
INDEX:DXYShort
by justatrader
38
Energy Sell Off - Low RSI Not Seen Since CovidWatch energy to see if it bounces off these levels as the selling pressure over the last two weeks has been relentless with no bounces. Possible Bullish abandoned baby candle if tomorrow is a large up candle. Understanding the Bullish Abandoned Baby Traders watch for bullish abandoned baby patterns to signal the potential end of a downtrend. The pattern is fairly rare as the price movements need to meet specific criteria in order to create the pattern: 1. The first bar is a large down candlestick located within a defined downtrend. 2. The second bar is a doji candle (open is approximately equal to the close) that gaps below the close of the first bar. 3. The third bar is a large white candle that opens above the second bar.
AMEX:XLE
by Audacity618
Sensorium (SENSO) / BTC - A rewarding candlestick patternThe pattern of candles highlighted is a favourite of mine. You don’t often see such a clear example in the charts, but when you do.. If you’re new to trading / active investing, this is one to put in your notebook. No matter the chart study, stocks, crypto, price of fish cakes in Hong Kong, it works every time on all time scales, the weekly is partially powerful. On the above weekly chart a battle of psychology between bears and bulls is playing out. Why is this pattern significant? Candle by candle starting from ‘1st candle’ 1) The bears stepped in, they pushed price down closing the week lower than it began with significant pressure, hence red candle. 2) The bears stepped in again and closed price action lower than the week began. But two things have changed from the previous week: 2a) The wick is lower, indicating sellers are weakening. 2b) The body of the candle is thinner. This tells that despite all the selling pressure of the bears, the bulls matched it. 3) At this point you start to see something significant. A very thin body with a long wick above. This candle is called a ‘morning star’ and is confirmed with a ‘green candle’ in the following trading session, which we have. The psychology here is the bulls entered deep into the bears territory with not as much resistance as the previous session. 4) The first green candle. A ‘indecision candle’. The bears are confirmed ‘exhausted’, bulls closed price action higher than the previous trading session. 5) This is where is becomes mega interesting. The buying pressure soaking up the bears sell orders has not gone away. So what happens next when the bulls step in again without the selling pressure? Kaboom. Print it out and hang it up somewhere! WW Is there any examples? Sure: Here is a weekly dollar chart on something called Dragonchain: And again the AAVA dollar chart before going on a 200000% bull run.
S
by without_worries
26
EUR USD - Weekly AnalysisEUR USD closed this weeks candle as the classic "Hanging Man" Japanese candlestick pattern. On its own, it doesn't provide any sort of trade trigger. But it does, however, give me something to look for on next weeks candle close. Confirmation to go short based on this hanging man candle would happen if next weeks candle closes below the real candle body of the hanging man (below 1.06444). Confirmation is needed to trade hanging man candles due to the bullish implications of the long lower wick. Waiting for confirmation will show that the bears are indeed in control, and I can then look for somewhere to enter short based on the H4 structure.
by Tradius_Trades
Key tests coming on SPX, IWM and NDXRecently, across all major market indices, the market has entered bullish trading channels, and is trading above the 14 day, 50 day, 100 day SMA, however, yesterday, bears took over the market, resulting in bearish candlestick reversal patterns happening in the S&P 500, Russell 2000 and Nasdaq. In the market, many stocks have had breakouts and gaps this past week, which can easily be reversed and filled, so today's trading will give a good indicator of the strength of the trend.
SP:SPX
by spiritualhealer117