Same size body trade 

Same size body trade

reader’s message
——————
After the last big bearish candle in the downtrend,

there was a big bullish candle of almost the same body size

like the previous (bearish)candle. Again,the last candle was a bullish candle with comparatively smaller body size.

The bulls are trying to come into the market to apply buying pressure

to reverse the downtrend. However, the buying pressure is weakening

towards the close of the day. The stage is not set yet for an uptrend.

I will not trade, I will wait

Regards
——————

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Why use candlestick?

Candlestick charts were originated in Japan.
Since no defined currency standard existed in Japan during that time,
rice was represented as a medium of exchange.
Various feudal lords deposited rice in warehouses in Osaka and would then sell or trade the coupon receipts.
Thus rice became the first market trading option.
In the 1700’s legendary Japanese rice trader Homma Munehisa studied all aspects of rice trading from the fundamentals to market psychology.
Homma subsequently dominated the Japanese rice markets and built a huge fortune.
His trading techniques and principles eventually evolved into the candlestick methodology.
This was then used by Japanese technical analysts when the Japanese stock market began in the 1870s.
The method was picked up by famed market technician Charles Dow around 1900.
Still it is the most popular form of technical analysis chart used by today’s traders of financial instruments.
Candlestick charts show the same information as bar charts but in a graphical format that provides a more detailed and accurate representation of price action.
Candlestick charts visually display the supply and demand situation by showing who is winning the battle between the bulls and the bears.
Candlestick charts reveal another dimension of the given period’s price action by pictorially displaying the force behind each price bar’s movement.
Candlestick formations make all single bar and multi-bar patterns significantly easier to spot in real time.
Thus it increases trader’s chances of catching high probability trade setups.
In addition, because candlestick charts use the same data as bar charts (open, high, low, and close), all Western technical signals can easily be applied to a candlestick chart.
Candlestick charts offer everything bar charts do and more.
Using them is a win-win situation because traders can use all the trading signals normally used on bar charts with the added clarity and additional signals generated by candlesticks.

https://youtu.be/0OoJThwFu6E

Candlestick Reversal Strategy

Same size body tradeSame size body trade