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4K views

CWRV by LMBO

Uploaded by

gigadream1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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What is Price Action Trading?

Price action trading is a methodology for financial market


speculation which consists of the analysis of basic price
movement across time. It’s used by many retail traders and
often by institutional traders and hedge fund managers to
make predictions on the future direction of the price of a
security or financial market.
Reading Candlestick

Open High High


Candlestick

Close Open
Close
Body
Low Body

High Open Close

Low Low
Body Colour
Understanding Wick of Bullish Candlestick

=
=

=
=
Understanding Wick of Bearish Candlestick

=
=

=
=
Candlestick Ranges

Strong Normal Weak Neutral

Strong Normal Weak Neutral


Single Candlestick Patterns

❑ Bullish Hammer ❑ Bearish Hammer


B B
U E
L A
L ❑ Bullish Inverted Hammer R ❑ Bearish Inverted Hammer
I I
S S
H H
❑ Spinning Candle ❑ Spinning Candle
P P
A A
T T
T ❑ Marobozu T ❑ Marobozu
E E
R R
N N
S ❑ Close Marobozu S ❑ Close Marobozu

❑ Open Marobozu ❑ Open Marobozu


Single Candlestick Patterns

Bullish Pin Bar Bearish Pin Bar


What is Volume?

Volume is a measure of quantity in trading. Volume is the


amount of a particular asset traded over a period of time. It
is the number of units of shares or contracts that change
hands between buyers and sellers.
Volume is an important indicator of market activity and
liquidity, which means it often provides price information.
Validation & Anomaly

When analyzing price volume we always look for two main signals.

Whether the price is observed in terms of volume If the price


change is corrected in terms of volume, it is a trend continuation

If there is an anomaly in the volume of the price as opposed to the


volume of the price, there is an indication of a possible change in
the trend
Effort vs Result

understanding the effort vs Result, Effort reflects volume. While the result shows the
price. If the size of the candlestick is large, then the volume bar should be large.
Which shows price Validation, If the candlestick size is small and the volume bar is
small, it indicates validation.

If the size of the candlestick does not match with the volume bar size, it indicates an
anomaly in price and volume.

An anomaly between two candles indicates weakness in the formation that the price
will reverse at recent support and resistance.

Understanding more about volume Read each candlestick with volume to give an idea
of the strength and weakness of the trend, which can indicate the continuation and
reversal of the candlestick.
Validation

Validation in Double Candlestick


Validation in Single Candlestick
Validation Trading Signal

Validation in Double Candlestick


Multiple Validation

Validation in Multiple Candlestick


Anomaly

Anomaly in Single Candlestick Anomaly in Double Candlestick


Anomaly Trading Signal

Anomaly in Double Candlestick


Multiple Anomaly

Anomaly in Multiple Candlestick


Double Candlestick Reversal Patterns Signals

B
U
L
L
I
S
H

P
A
T
T
E
R
N
S
Double Candlestick Reversal Patterns Signals

B
U
L
L
I
S
H

P
A
T
T
E
R
N
S
Double Candlestick Reversal Patterns Signals

B
U
L
L
I
S
H

P
A
T
T
E
R
N
S
Double Candlestick Reversal Patterns Signals

B
U
L
L
I
S
H

P
A
T
T
E
R
N
S
Double Candlestick Reversal Patterns Signals

B
E
A
R
I
S
H

P
A
T
T
E
R
N
S
Double Candlestick Reversal Patterns Signals

B
E
A
R
I
S
H

P
A
T
T
E
R
N
S
Double Candlestick Reversal Patterns Signals

B
E
A
R
I
S
H

P
A
T
T
E
R
N
S
Double Candlestick Reversal Patterns Signals

B
E
A
R
I
S
H

P
A
T
T
E
R
N
S
Single Candlestick Reversal with Volume Signals

Reversal Patterns Reversal Patterns


Same Colour Candlestick Continuation Signal

B B
U E
L A
L R
I I
S S
H H

P P
A A
T T
T T
E E
R R
N N
S S
Easy Prediction With Candlestick Psychology
Bullish Psychological Patterns

B
U
L
L
I
S
H 1. 3.
2. 4.
P
A
T
T
E
R
N
S
Easy Prediction With Candlestick Psychology
Bearish Psychological Patterns

B
E
A
1. 2. 3. 4.
R
I
S
H

P
A
T
T
E
R
N
S

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