[reversal] Help Reading

[pa18 10]

Can any kind candlestick expert soul help me understand and read this reversal in participants psychology terms?

 

I saw there was a run up, then a pin evolved follow by 2 dojis (A and B), then the drop.

 

Normally I try to get an engulfing candle as a trigger but I got stumped and didn't understand the 2 dojis which followed the pin.

 

1. pin ... sellers overcome buyers

2. doji A ... indecision

3. doji B ... indecision

4. sellers win big

 

maybe there wasn't a trigger?

 

Thanks

[Tams 20]

Can any kind candlestick expert soul help me understand and read this reversal in participants psychology terms?

 

I saw there was a run up, then a pin evolved follow by 2 dojis (A and B), then the drop.

 

Normally I try to get an engulfing candle as a trigger but I got stumped and didn't understand the 2 dojis which followed the pin.

 

1. pin ... sellers overcome buyers

2. doji A ... indecision

3. doji B ... indecision

4. sellers win big

 

maybe there wasn't a trigger?

 

Thanks

 

it would help if you include the volume as well.

[pa18 10]

Hi Tams,

 

I don't look at volume as I've never found any use for it and the candlesticks are for the forex market.

 

I just need other traders ideas just by reading the CS

 

Thanks

[Tradewinds 12]

That long tail on the inverted hammer at the peak, would automatically make me think the price was peaking. Plus there were previously 4 bars that closed up, and the last two bars where really strong price moves. In a situation like that, at the very least, I would expect some retracement on price.

 

In this case, the retracement turned into a down turn in price. My guess is, that something was happening on the longer time frame.

 

I don't really read candlesticks except for what I intuitively pick up, but I'm always looking for patterns in my indicators. And when a pattern fails I ask "Why?". The first question I would ask is, "Was there any news releases at that time?". When a pattern fails, it's often some influence outside of price and volume.

 

The next thing I look at when a pattern fails is the higher time frame. So if a short term time frame pattern fails, I then default to the longer time frame indications.

 

The bottom line is, unless you have additional inputs with known affects on price, then this might be just one of those situations where you can't really figure out why the price did what it did. We can't know why every price move happened.

 

So how do you strategize for something like this? If you were long, and had a nice profit from that strong move up, I would just lock in profit, and wait to see what is going to happen next. If price was going to continue up, there should have been an indication of that, but it didn't happen.

[SIUYA 11]

Can any kind candlestick expert soul help me understand and read this reversal in participants psychology terms?

 

You need more context. What is the time frame - this could just be a few ticks, or a day, or a month.

Is this part of a larger uptrend, and hence it may be a short term pullback, and thus a buying opp.

Was this a small rally in a downtrend and hence a good sell signal with a break of A or B.....

Without context its hard to understand if it was a lack of buyers, aggressive sellers, a pause, a continuation, a small pullback, a large pullback, a sell signal, a set up for a buy signal....etc; etc;

[pa18 10]

Hi, good morning,

 

The original chart is a 15 minute chart showing a retracement into what I believe to be higher time frame resistance.

 

Here is another 15 min chart from a different broker showing the same price action but in a different configuration, for me the trigger would be the engulfing, and I would have no hesitation taking that. However reading the first chart I posted was challenging and there wasn't a trigger I think. I want to see if anyone can see exhaustion in my original chart from their point of view ... a pin bar then 2 dojis, does that mean anything or nothing at all?

 

Thanks for the responses so far

[Do Or Die 10]

Can any kind candlestick expert soul help me understand and read this reversal in participants psychology terms?

 

I saw there was a run up, then a pin evolved follow by 2 dojis (A and B), then the drop.

 

Normally I try to get an engulfing candle as a trigger but I got stumped and didn't understand the 2 dojis which followed the pin.

 

1. pin ... sellers overcome buyers

2. doji A ... indecision

3. doji B ... indecision

4. sellers win big

 

maybe there wasn't a trigger?

 

Thanks

 

Hi,

 

I have a good experience on trading with candlesticks (so called price action)

 

My first advice is that we do not make judgements based on single patterns. It's a study of supply and demand.

 

Could you please share the whole chart- atleast 300 bars- then it will make more sense.

 

DD