CFD US Wall St 30 Candlestick
Piercing candlestick trading CFD US Wall St 30 candlestick
This is also a two-candle reversal pattern.first day you see a wide range candle that closes near the bottom of the range. The sell position traders are in control.
Second day wide range candle close at least halfway into the first day candle.
Those that shorted the market price on first day are now sitting at a loss on the rally
that happens on the second day. This can set up a powerful reversal.
so you can trade this timing.
CFD US Wall St 30 Candlestick
Importance of understanding which phase the market is in
Price action trading depends a lot on the market trends.
In any kind of treading method, trends are considered very carefully as they can impact the results of the trading.
So, it is very important for the traders to know why trends are important in price action trading.
As a trader, it’s critical to be able to form a bias.
A bias will give traders a conviction on what kind of trade to plan and the appropriate strategies to use.
Before executing a trade, you need to know whether it’s bullish, bearish or neutral.
In that way traders won’t be confused and swayed by news or sudden moves in the market.
Planning a trade with no bias is like going into a war with no purpose and target in sight.
Once traders have a bias based on the market phase, they can start building a trade plan to give them a high probability trade.
For example, if the market is on an uptrend, traders will be bullish and they will be looking for confluence levels of support like trend lines, chart patterns, visual levels to plan their entries.
Traders can also look at indicators like moving averages, MACD or stochastic to confirm my bullish view.
It’s all about stacking the odds.
The trend is assumed as truly traders’ friend.
Understanding price action will enable you to identify swings on the onset and be aware of any trends that are forming.
Traders can then capitalize on such moves and be part of the trends that can last for a considerable period of time.
So, without the trends in the right position for your entry, you cannot think of a successful trade.
That’s why it is always important to know the trend of the market before traders start their planning for an entry or an exit.
