Candlesticks discussion

Quote from sunnyskies:

Just a general discussion on candlestick patterns. Most importanly charts are posted. I'll go first. If you see anything wrong with my interpretation/identification of candlestick patterns, let me know where I went wrong.

http://charts.dacharts.com/2005-08-28/1candles.png
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On your chart you annotated with the words...

You see a pattern here? I do hmmmm...

I do also and its a reliable price action only pattern I've used often in trading EuroFX.

It involves the following and how they relate to each other:

* White WRB (your chart its green)

* Three intervals before the white WRB

* Two intervals after the white WRB

NihabaAshi
 
Quote from sunnyskies:

Answer the quiz :)

My answers are

1) Resistance from March 4

2) Long - Legged Bearish Doji

3) Inverted White Hammer
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Lot of shadows on the tops of those candles. Before what you
describe as a Long - Legged Bearish Doji there is what looks like
a spinning top to me indicating indecision at that point...

Looks like there was 2 points of resistance in March. Both of them
turned the stock right back down.
 
I have this question about Engulfings. Lets take a Bullish Engulfing. What if the first candle in the pattern is a doji ie. no body and the second "engulfs" it up - would this still be considered a Bullish Engulfing?
 
Quote from sunnyskies:

Answer the quiz :)

My answers are

1) Resistance from March 4

2) Long - Legged Bearish Doji

3) Inverted White Hammer
More...

I can also see a double top @43.03...
 
Quote from sunnyskies:

I have this question about engulfing. Lets take a Bullish Engulfing. What if the first candle in the pattern is a doji ie. no body and the second "engulfs" it up - would this still be considered a Bullish Engulfing?
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Nope, because in the case you describe only another doji wouldn't be engulfing, leaving any other candle to fall by default into engulfing pattern category.
 
Quote from sunnyskies:

Just a general discussion on candlestick patterns. Most importanly charts are posted. I'll go first. If you see anything wrong with my interpretation/identification of candlestick patterns, let me know where I went wrong.

http://charts.dacharts.com/2005-08-28/1candles.png
More...

Did you see any signs that Support would be broken around 11:15 ?

I noticed this is a 5 min chart and that EUR/USD was in consolidation between approx 7:40 and 11:15 (between about 1.2265 and 1.2280).

I have trouble with consolidation all the time... notably that my indicators (trending indicators) tell me to short at the bottom and go long at the top - which is fine if it's a real trend, but murder if it turns out to be consolidation. When I finally realize what's going on, identify the consolidation channel, short the top and long the bottom, it eventually breaks on me into a trend and I get caught in the wrong direction.
 
Have you tried to look at MACDs?

if you were using 20MinMA, 50MinMA, 100MinMA you might have seen something: I noticed that there was an attempt to break above its moving average, spiking to 1.2275 but didn't follow through.

Of course this wouldn't have been anywhere near enough to justify the decline.

But If you look at how and when they cross you realize they can be of good help even on long time frames.
 
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