In trading means looking for other reasons to take a trade for example support and resistance pivots and indications from technical indicators. We always look for trading confluence and you will see this along with the candle patterns in the trades.
Here you can see, how the candlestick patterns and their types. We need to make when to enter a trade when to continue in a trade and when to exit a trade. We’re going to look at how we make those trading decisions using pin bar marubozu are similar momentum indicating candles, engulfing candles and spinning tops .These can all provider with indications as to what the market will do next. This is a short trade on the Dow Jones industrial average.
At the top we can see a pin bar is formed indicating the market will reverse and continue downwards. We can also see on the same trade, we have the confluence of a Fibonacci retracement and a daily pivot to indicate the market will reverse the previous example, showed us how we can use a pin bar to enter a trade this example shows us how we can use a pin bar to exit a trade
we can see the pin bar candle forming and we also have the confluence of the five eight hundred number where we anticipate some resistance this gives us an indication that we should take some profit to this as the market may reverse against us. Here on the DAX, we can see a bearish engulfing candle which is broken a support level that gives us an indication which we can go short and remain short and aim for a profit target lower down. The indication turned out to be a good one and the market comes down and hits our profit target down at nine five to five as I mentioned earlier true Marv BOSU candles are quite hard to find them more often than not have little wicks or tails either side of the body. Here we can see a very strong momentum candle taking us through a key resistance level and allowing us to get long on a breakout trade. We then see a bearish engulfing candle which encourages us to bring our stop to break-even before once again seeing a strong momentum candle. Take us to new highs this is an example of a bullish engulfing candle and how different candle formation can appear on different time frames.
Here we have a 1 minute chart every candle is written after every one minute and here we have a 5 minute chart where every candle is written after five minutes. On the one-minute candle we can see a bullish engulfing candle which is indicating the market will want to go back up on the 5-minute time frame, we can also see a pin bar is forming also indicating the market is going to go back up moving on slightly. You can see the next 5-minute candle is a bullish engulfing candle sometimes shorter-term timeframe candles that will indicate what longer-term ones will do next in this trade this is where we use a spinning top candle combing the support level to decide to take profit. We can see the buyers and sellers both been active during the candle, but eventually the price closes near where it opened indicating indecision for that time period. There are some best buy sell signal software which will give you 100% accurate signal on each stock.