Merong tatlong tipo ng candlestick patterns:
Reversal, indecision, and continuation.
If I want to know who’s currently in control of the markets, I ask myself, “ Where did the price close relative to the range?”
If I want to know if there’s strength behind a move, I ask myself, “ What’s the size of the candlestick pattern relative to the earlier ones?
Ang candlestick patterns are useful as entry triggers to time your entries.
SUpport tends to break in a downtrend or when there are Lower Highs into support.
REsistance tends to break in an uptrend or when there are Higher Lows into resistance.
The most important rule of trading is to play great defense, not great offense by paul todor jones.
MAEE formula:
Market structure - i ask myself is this accumulation, advancing, distribution, or declining stage.
Are of value - where might potential buying pressure step in?
Entry trigger - use candlestick patterns, chart patterns, indicators crossing a certain value etc.
Exits - 1 when the price moves against you(stop loss). 2 when the price moves in your favor ( you can do this using target profit or trailing stop (loss).
ATR - average true range.
Explanation
- The average true range (ATR) is a technical analysis indicator that measures how much an asset's price changes over a period of time.
- A stop loss is an order that closes out a position if the price of an asset falls below a certain level.
- An ATR stop loss is a stop loss order that's placed at a percentage of the ATR from the entry price.
How to use an ATR stop loss
- Use the ATR to set stop-loss levels that account for an asset's price fluctuations.
- Use a multiplier based on your risk tolerance to calculate the stop-loss.
- Monitor changes in ATR values to identify potential breakouts or trend reversals.
Benefits of using an ATR stop loss
- Helps traders avoid being stopped out by normal market volatility
- Helps traders preserve capital and maintain consistency across various market conditions
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