The euro is forming a large wedge, or triangle pattern on the daily charts. As price gets closer and closer to the apex more pressure will build and an explosion of price action will result. Position yourself accordingly. Click the link for more info on price patterns.
The Hanging Man Reversal is a common candlestick pattern we see near the end of a rally. The psychology behind the pattern is simply, retail traders or “late to the party charlies” want to get a piece of the action, but the majority of the move has already happened. If the following day closes below the hanging man’s close, all the bulls who went long on the hanging man’s close are now underwater in their positions and selling occurs. In…
Monday’s SPY chart produced a candlestick pattern called the hanging man. This is a bearish pattern. To some, Monday’s candle may look like a hammer (a bullish signal), it is the positioning of the candle (at the top of the rally) that makes it a bearish pattern. The hanging man alone does not initiate a sell or short signal. Tuesday’s price action, closing below the body of Monday does however confirm this bear signal (see the write-up on candlesticks). While…
The Japanese Candlestick charting technique is one of the most useful tools for spotting these price patterns and trends. Here is a technical swing trading strategy which analyses key support and resistant levels for entry and exit of our trades. Support and Resistance Price patterns are created using support and resistance levels and help give us a clearer understanding of what’s going on in the stock. Support and resistance are like the floor and ceiling of a room. Support being…