Bearish Gap and a Long Earish Candle means price go more down in Candlestick Trading 

Bearish Gap and a Long Earish Candle means price go more down in Candlestick Trading

 

Reader’s message
——————

Hello Long,

Thank for it.
But I’m Afraid I don’t understand.

Usually, when I see a bearish gap like this, I try to go LONG. I usually try to fill the gap, as many people.
But as you can see this time I lost much.

So if I understand, when you see a bearish gap, and a long bearish candle, you go short?

What is your stop loss ? take profit on trailing stop?

On the screenshot, you did sell 0.02 BEFORE the gap ; how did you know that you should go short?

Thanks for all !
Regards,

——————

Yes go short.

Because bearish gap, and a long bearish candle means price go more down in candlestick trading
first time stop loss near high.

Next bar close then move stop loss to entry bar high.

Before the gap lost direction candlestick appear

So sell entry.

Bearish Gap and a Long Earish Candle means price go more down in Candlestick TradingBearish Gap and a Long Earish Candle means price go more down in Candlestick Trading

 

Basics of Price Action Trading
Price action trading is based on the price movements of the market and previous results of the market based on the price movement.
The only thing that differentiates price action trading from others is the use of indicators.
Price action trading needs no indicator to indicate the trend of the market or the possible results.
One of the first pillars of technical analysis is focusing on the trend.
The trends can predict many important things about the market.
The price action trader will use setups to determine entries and exits for positions.
Each setup has its optimal entry point.
Some traders also use price action signals to exit, simply entering at one setup and then exiting the whole position on the appearance of a negative setup.
Alternatively, the trader might simply exit instead at a profit target of a specific cash amount or at a predetermined level of loss.
This style of exit is often based on the previous support and resistance levels of the chart.
A more experienced trader will have their own well-defined entry and exit criteria, built from experience.
An experienced price action trader will be well trained at spotting multiple bars, patterns, formations and setups during real-time market observation.
The trader will have a subjective opinion on the strength of each of these and how strong a setup they can build them into.
A simple setup on its own is rarely enough to signal a trade.
There is no evidence that the price action trading can be accurate all the time, but it has higher accuracy rate than others.
And on the other hand traders can actually learn all the basic things while trading in this method.
They can find the answers of their queries regarding the trends and patterns.
Price action trading actually helps the traders to gain more experience in trading.

https://youtu.be/7rhdg9QLz4M

Candlestick trading strong buy pattern Long shadow + Long body