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Author: Admin | 2025-04-28
Target, this would typically be in expectation the price produces another higher high within the trend.To implement this strategy for the downtrend, go to the Libertex platform, select the crypto you wish to trade, maximise the chart, then select the trend line tool on the left-hand side. Draw a downward trend line from the most recent higher to the next lower high point.You can then wait for the price to next come up to the resistance trend line and look to execute a sell position if it finds support again. In terms of a target, this would typically be in expectation the price produces another higher high within the trend.Inverted Candlestick CombinationsAnalysing Japanese candlesticks isn't just a fascinating process; it's also beneficial. Their various combinations can signal a trend reversal, for example. Moreover, this type of analysis can be used alone or with other methods.Here are the most popular candlestick patterns that can indicate a trend reversal and serve as a signal to open a trade. Essentially, they are a set of candle formations with specific sequences.Bullish reversal patterns of Japanese candlesticks:Bearish reversal patterns of Japanese candlesticks:Try to independently identify such patterns on cryptocurrency charts, and witness their simplicity.Here's an example from the daily candlestick chart of Bitcoin in December 2022.Pattern: Shooting StarHere's an example from the hourly candlestick chart of Ripple in April 2023.Pattern: Morning StarLet's take a look at a couple of examples of implementing candlestick patterns.HammerOn the chart select the candles icon, change the timeframe to a 15-minutes, and locate a hammer candlestick, it will have a small body and a long shadow. Once you have spotted one, it is time to act with a trade, place a sell position if the long shadow is above the body, and buy if it is below. Enter your trade amount and a stop loss, you can close the trade when a different colour candlestick appears on the chart.Evening starHere is another simple but effective candlestick pattern to use as a potential strategy, an evening star formation.On the chart select the candles icon, change the timeframe to a 15-minutes, and locate an evening star candlestick. The formation itself consists of three candles: a large green candlestick, a small-bodied candle up in the middle, and a red candle.Traders can enter a trade after the red candle, placing a stop loss above the small candle in the middle, and the trade can be closed when a green candle reappears.For example, statistics show a 91% probability of a reversal occurring after ten candles of the same colour. And if you see 13 single-coloured candles following one another, the likelihood of the trend changing is 96%.The movement of any financial instrument obeys one simple
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