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Candlestick Patterns: Simplify Your Charts Video

By Bruce Banks

Candlestick Patterns: Simplify Your Charts

We’ve gone into detail on Technical Analysis strategies. One difficulty traders have is identifying key Candlestick patterns in the market. The highs and lows pattern is easy, but it rarely appears so cleanly on our charts. We are faced with candlesticks that form patterns with ticks outside of key areas.

One key addition to our analysis we can do is use the theory of Encompassing Candlesticks. These are formed when their highs and lows are greater than surrounding candlesticks. This is true for candlesticks before or after encompassing candlesticks. When a market is wide ranging, the specific highs and lows within this range become less important. These price levels are broken, and therefore are less significant. This is true for large swings in the market and down to each individual candlestick.

 

Why Use These Candlestick Patterns?

Candlestick patterns
Candlestick patterns with encompassing candlesticks

When we are able to remove 2 or even 5 candlesticks, it simplifies the price action on the chart. While we are removing information, the inside candlesticks are less important to our analysis. We can choose to ignore them, or take them into account. If we choose to ignore these candlesticks, patterns may start to appear. If we choose to keep these candlesticks in our analysis, we can weight them differently.

We can use these modified charts to clarify our technical analysis on the charts like in the next video here:

Trading Support and Resistance

OHLC Charts VS Candlestick Charts Video

By Bruce Banks

OHLC charts VS Candlestick Charts

These are two of the most popular ways of displaying data on our charts. They both display the high, open, low, and close of each bar. This means that the information that they display is identical, and it is purely stylistic choice between OHLC charts and Candlestick charts.

Are OHLC charts better than Candlestick charts?

OHLC charts display the information on the chart in a very simplistic manner. This means that, with the way we view them, they put near equal weight on the lows of each bar.

This can be good or bad depending on your own trading style. If you consider the wicks or the tails of the OHLC bars to be less important (a common method when trading candlesticks) reading the OHLC charts becomes more difficult. Without the emphasis of the difference between the open and close, OHLC charts tend to be less visual.

[Read more…] about OHLC Charts VS Candlestick Charts Video

Best Time Frame For Day Trading – Video

By Bruce Banks

The best time frame for day trading is a question that is overlooked by many traders. It defines how you trade and the methods you use to trade. Have a successful trading method in one time frame may not translate to another time frame easily. It would be as if a trader who only works on the 1 minute charts switching to a daily outlook and expecting the same results.

Why choose one set of time frames to trade?

The real answer is that there is no best time frame for day trading. The most important aspect of choosing a time frame for day trading is that you stick with a single set. Swapping between 3 or 5 different time frame sets will not give you good trading results. You may even have a successful trading method, in hand, but swapping time frames is ruining your trading results.

 

 

How to choose your own best time frame for day trading?

[Read more…] about Best Time Frame For Day Trading – Video

Breakout Trades and High Volume Trade Spikes Video

By Bruce Banks

Why does the market break out of certain areas on the chart, and how can use these breakout trades? In this video, we analyze how to spot these levels of R&S and how to trade off of them.


High volume trade spikes happen when the market breaks levels of re enforced support and resistance. Active position stop loss levels trigger at this point causing a snowball effect.  When you are trading these levels, be mindful of how quickly the market can move. These levels do act as barriers for the market to break, but when they are broken the market can run quickly. This is because they hold not only people who want to trade that direction in the market, but the people with stop losses in place. This causes a two fold increase in buying/selling.

Why watch out for these Breakout Trades?

[Read more…] about Breakout Trades and High Volume Trade Spikes Video

Multi Time Frame analysis: Forex Charts

By Bruce Banks

Traders use multi time frame analysis to give them an edge on short term and long term traders. This is because using a mix of time frames can show you areas in the market that provide resistance, support, or expected moves. There is no reason every trader doesn’t keep multi time frame analysis as one of their key tools in trading. It takes the bigger, more influential, picture of the maket, and applies this to the shorter time frames. You end up with the best of both worlds.

This video shows you how and therefore why you can and should use multi time frame analysis

[Read more…] about Multi Time Frame analysis: Forex Charts

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Recent Posts

  • Bullish Candlestick Pattern High Volume Trading Video
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  • Breakout Trades and High Volume Trade Spikes Video
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Bruce Banks Trader And Trainer

  • 1 Bruce Banks
    • Bullish Candlestick Pattern High Volume Trading Video
    • TAS Market Profile Trading Retracement Trades
    • Breakout Trades and High Volume Trade Spikes Video
    • Price Action Trading Video
    • Market Profile Point of Control: Video

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