Today's candle was a Neutral candle. A Neutral candle is a candle that closes near the middle of its range. The trading psychology here is the market opened near its high and was able to sell-off. Then the bulls entered the market and pushed the market back upward but were not able to move the market back to the high of the session. It was like a tug-of-war between the bulls and the bears with neither side winning. This action produces a lower shadow that is equal to or nearly equal to the length of the real body.
Today's candle looks like and can often be confused with an Engulfing candle because it Engulfs the real body of the previous candle, however, it is not an Engulfing candle.
So how would I make a trade decision based upon this candle?
To trade this candle I want to see a future candle that shows real bearish strength and closes below the low of today's candle. If I can see that in the next one or two sessions I may be interested in a Short trade.
PLEASE GIVE ME A THUMBS UP if you agree with this trading tutorial to help me become a TOP AUTHOR. Also please leave a comment on how I can improve the tutorial.
Want a second opinion analysis on a pair you are looking to trade? Feel free to send me a private message I enjoy sharing.
Today's candle looks like and can often be confused with an Engulfing candle because it Engulfs the real body of the previous candle, however, it is not an Engulfing candle.
So how would I make a trade decision based upon this candle?
To trade this candle I want to see a future candle that shows real bearish strength and closes below the low of today's candle. If I can see that in the next one or two sessions I may be interested in a Short trade.
PLEASE GIVE ME A THUMBS UP if you agree with this trading tutorial to help me become a TOP AUTHOR. Also please leave a comment on how I can improve the tutorial.
Want a second opinion analysis on a pair you are looking to trade? Feel free to send me a private message I enjoy sharing.
