CANDLESTICK GUIDE FOR BEGINNERS - TWEEZERS
Just because it's Thanksgiving doesn't mean we get to take off! Here's a thread on basic candlestick patterns all traders should be familiar with.
Candlesticks are a method of displaying price. Unlike a line chart or a point and figure chart, candlesticks contain four main data figures.
The Four Data Points:
1. The high price
2. The low price
3. The opening price
4. The closing price
Green Candle - When price closes higher than it opened
Red Candle - When price closes lower than it opened
The Body - Indicated the range of the open and close
The Wicks - The long thin lines above and below the body of the candles. They reveal the highs and lows of price with respect to the time frame
Longer Body - Heavier trading (Buying/Selling Pressure)
Smaller Body - Lighter trading (Buying/Selling Pressure)
Now that we have the basics, here are a few of my favorite candlestick patterns for day trading.
Tweezers are reversal patterns I like to use on the 5-minute timeframe. It is important to note that when I trade tweezers, it is always a scalp trade.
Tweezer bottoms can be considered short-term bullish that reverse, while tweezer tops can be regarded as bearish reversals. Both were unable to push the top and bottom further. Each type of pattern requires careful observation and research in order to be correctly understood.
The more pieces of conviction, the better the setup.
I will rarely take a trade solely off a tweezer. I like to add tweezer tops/bottoms when overlapping with...
Took a page out of my buddy @💎
notebook here with a guide on entry & exit for tweezers.
They offer high R/R setups with a tight stop over/under the tweezer high/low.
I like to add bearish engulfing patterns at resistance or overlapping supply zones. Like I said previously with the tweezers, the more pieces of conviction the better.
I play engulfing candles with a stop over/below the engulfing candle high or low (varies for bearish/bullish)
This once again gives me a high R/R setup with a tight stop if the setup were to be invalidated.
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