Bullish Gartley Pattern

First introduced in 1935 by trader H.M. Gartley in his book, Profits in the Stock Market

Contains an bullish ABCD pattern preceded by a significant high or low (point X)

A visual, geometric price/time pattern comprised of 4 consecutive price swings, or trends—looks somewhat like an M on price chart.

A leading indicator that helps determine where & when to enter a long (buy) position, or where to exit a short (sell) position.



Why are Bullish Gartley Patterns important?

Helps identify higher probability buying opportunities in any market (forex, stocks, futures, etc.), on any timeframe (intraday, swing, position).

Reflects convergence of Fibonacci retracement and extension levels at point D suggesting stronger level of support, thus higher probability for market reversal.

X-to-A ideally moves in the direction of the overall trend, in which case the move from A-to-D reflects a short-term correction of established uptrend.

May also indicate trend reversal when found near bottom of downtrend channel, or as a reaction coming of significant support at point X.

May provide a more favorable risk vs. reward ratio, especially when trading with the overall trend.

So how do I find one?

Each turning point (X, A, B, C, and D) represents a significant high or significant low on a price chart. These points define four consecutive price swings, or trends, which make up each of the four pattern legs. These are referred to as the XA leg, AB leg, the BC leg, and the CD leg.

Bearish Gartley Pattern Rules (sell at point D)



Swing down from point A-to-D will typically be 61.8% or 78.6% retracement of XA

Must be valid ABCD pattern observed in move from A-to-D

Time from XA and AD ideally in ratio and proportion

Limited instances where ABCD move completes at 100% of XA (double bottom)

Time of XA and AD should be equal for true double bottom

Pattern failure (price moves beyond point X) may indicate continuation move

Price may move down to at least 127.2% or 161.8% of X to A move

Falling and Rising Wedges

Rising wedges occur when both the slope of the lows and the highs is rising. The slope of the lows must be steeper though, so that at some point it forms a point with the slope of the highs.

Falling wedges occur when both the slope of the lows and the highs is falling. The slope of the highs must be steeper though, so that at some point it forms a point with the slope of the lows.



Why are Rising and Falling Wedges important?

Wedges simply that the market cannot decide whether to break up or down. Once the flag is broken by the price, there may be a substantial move in the direction of the break.

So how do I use them?

Flags can be used to interpret large breaks in price. If the price breaks through the flag to the downside, there may be a large move down. Similarly, if the price breaks through the flag to the upside, there may be a large move up. However, usually price breaks in the direction of the wedge. We may use these to help identify trend or to confirm a Gartley or butterfly pattern.

Rising Wedge (EUR/CHF, 1 hour)



Falling Wedge (GBP/USD, 2 hour)

Moving Average Crossover

Moving averages are one of the most commonly used technical indicators in the forex market. They have become a staple part of many trading strategies because they’re simple to use and apply. While they’ve been around for a long time, their ability to be easily measured, tested and applied makes them an ideal foundation for modern trading strategies which can incorporate both technical and fundamental analysis.

A moving average (MA) is a trend-following or lagging indicator because it is based on past prices.

The two main types of moving averages are:

Simple Moving Averages (SMA)

Exponential Moving Averages (EMA)

Both SMA and EMA are averages of a particular amount of data over a predetermined period of time. While Simple Moving Averages aren’t weighted towards any particular point in time, Exponential Moving Averages put greater emphasis on more recent data.

Let’s dig into Simple Moving Averages

Define: For example: A 10-day SMA is calculated by getting the closing price over the last ten days and dividing it by 10. When plotted on a chart, the SMA appears as a line which approximately follows price action – the shorter the time period of the SMA, the closer it will follow price action.

Using SMA Crossover to Develop a Trading Strategy

A popular trading strategy involves 4-period, 9-period and 18-period moving averages which helps to ascertain which direction the market is trending. We’ll focus on SMAs because they tend to indicate clearer signals and we’ll use it to determine entry and exit signals, as well as support and resistance levels.



Entry

A buy/sell signal is given when the 4-period SMA crosses over the 9-period SMA AND they both then cross over the 18-period SMA. Generally, the sharper the push from all moving averages the stronger the buy/sell signal is, unless it is following a substantial move higher or lower. Hence, if price action is wandering sideways and the 4-period and 8-period SMAs just drift over the 18-period, then the buy/sell signal is weak, in which case we keep an eye on price to ensure it remains below/above the 18-period SMA. Whereas if the first two moving averages shoot above/below the 18-period SMA with a purpose, then the buy/sell signal is stronger (in this case a confirmation of a strong upward/downward trend can come from an aggressive push higher/lower from the 18-period SMA).

Aggressive traders may enter the position if they see a strong crossover of the 4-period and the 9-period SMAs in anticipation of both crossing the 18-period SMA. We suggest ensuring that all moving averages are running in the direction of the break and that you keep a close eye on momentum. If momentum starts to dwindle early it can be an indication of a weak trend.

Sometimes price action can retrace sharply which causes the 4-period and 9-period SMAs to cross over the 18-period quickly, but because it’s a retracement and not part of the overall trend, price action can run out of steam fairly quickly. A trend that is losing momentum will become evident sooner in the short-term SMAs.

Exit

This is where the strategy becomes more subjective - judge the strength of the trend and proceed accordingly. You can wait for the aforementioned moving averages to re-cross each other or you can use your own judgement to determine when to exit the position. In a strong trend you may choose to exit the trend when it starts to head in the wrong direction over a few time periods, as sharp pushes in either direction can be subject to retracements.

In weak trends we suggest utilizing trailing stops. In any case, a big warning sign is when the 4-period and 9-period SMA cross back over the 18-period SMA, especially if the trade isn’t working out as planned. It may be a good time to get out to prevent possible further losses.

Stop

Ideally a stop should be placed far enough away that it isn’t triggered prematurely but close enough to minimise losses. The goal of a stop is to attempt to protect you in case of a sharp spike in the wrong direction. In many cases the 4-period and 8-period SMAs will cross over the 18-period SMA before a stop is trigged, which should be an indicator to cut your losses.

Buy example: USDJPY 10-minute chart
Notice that there is a strong push higher in price action after the crossover and then are a few opportunities to exit the trade. It’s also interesting to note that when the 4-period and 8-period SMAs cross back under the 18-period SMA it is a very un-interesting crossover (price action and the SMAs are very flat), so it wouldn’t entice us to get short.

SMA Tips

Shorter time frames tend to hug price action more closely than longer ones because they are focused more on recent prices

Shorter time frames will be the first to react to a movement in price action

Look at short and multiple time frames; for instance, look at both the 10 and 15 minute charts simultaneously.

The Favorite Fib

Our Favorite Fib is a Fibonacci-based strategy that takes advantage of momentum. It can be used on various time frames and markets, including FX majors, stock indices and commodities, providing the trader with endless opportunities. The strategy could be used, for example, after some major economic news – ideally, at the earlier stages of the move following the news. But if the news merely causes a corrective rally or sell-off inside an established trend, then this strategy won’t work as well. Thus it is suited for markets that are in a clear strong trend e.g. when price is making fresh all-time or multi-year/month highs or lows.

Time Frame

The higher the time frame, the more effective the F/F strategy works. It is typically used on 1 or 4 hour time frames, although sometimes it could be applied to the daily time frame, too. The shortest time frame that one can use this is strategy on is about 15 minutes. However if the trade is based on a higher time frame, then it is a good idea to zoom in to a 5-minute chart in order to refine entry.

Components of the strategy

The F/F strategy is based on some Fibonacci retracement and extension levels. These are the 38.2% and 50% retracement levels (the latter, in fact, is not a Fibonacci level), and the 127.2%, 161.8% and 261.8% Fibonacci extension levels.

To understand how the strategy works, let’s say that following a strong upward move (e.g. from point A to B), the market retraces a little (to point C) because of profit taking and/or top picking, before continuing in the original direction (beyond point B). This strategy requires 3 price swings – the move from point A to B, B to C (correction), and C to D (extension). Here is how an F/F buy strategy would typically look like:



In the F/F strategy, we are interested in some part of the CD leg of the move – the bit beyond point B, where entry is based. The profit target would be determined by a Fibonacci extension level of the BC move (more on this below).

One condition for this strategy to work well is that we need momentum. By definition, this implies point C should represent a shallow retracement of AB, and then a continuation in the original direction, beyond point B. Therefore, if price retraces more than 50%, or too much time elapses, before it breaks point B, then the entry signal would not be valid.

In other words, for optimal entry signal, we need a strong move from point A to point B; a relatively quick and shallow retracement of less than 50% to point C, and then a continuation towards point D.

Once point C is established, all of the strategy’s parameters can be determined.

Symmetrical Triangles

Symmetrical triangles consist of two lines of equal slope converging to a point in the future. The result is the appearance of a sideways triangle with the base to the left and the point the right.



Why are Symmetrical Triangles important?

A symmetrical triangle implies that the market cannot decide whether to break up or down. Once the triangle is broken by the price, there may be a substantial move in the direction of the break.

So how do I use them?

Symmetrical triangles can be used to interpret large breaks in price. If the price breaks through the triangle to the downside, there may be a large move down. Similarly, if the price breaks through the triangle to the upside, there may be a large move up. We may use these to help identify trend or to confirm a Gartley or butterfly pattern.

Symmetrical Triangle (USD/SEK, 4 hour)



Symmetrical Triangle (USD/SEK, 4 hour)



Wide Ranging Bars

Wide ranging, or long, bars occur when there is a bar that is at least 2-3 times longer than normal bars on the chart.

Often are the result of a major news announcement although this is not always the case.

Why are Wide Ranging Bars important?

Wide ranging bars signal strong momentum in the direction of the bar.

May signal that there is little buying interest in a bar down, and little selling interest in a bar up.

Can signal that possible support and resistance will not hold

So how do I use them?

If there is a wide ranging bar, generally that is a signal to stay out of the market. Our technical reports generally look for short term reversal points. If there is a wide ranging bar going into our entry, it may be a signal that the pattern being traded will not hold. In this case, we may simply cancel the trade.

Ichimoku Clouds

The Ichimoku Cloud is a form of technical analysis that was developed by a Tokyo newspaper writer in the 1960’s.

The cloud patterns of Ichimoku give you an instant idea on trend and direction in the markets. It uses moving averages to define support and resistance zones, identifies trend and direction and also helps to gauge momentum of price action.

Ichimoku not only uses the cloud to define support and resistance but it also uses the Kijun, Tenkan and Chikou lines that are very similar to moving averages and can help to provide bullish or bearish forward indicators.

Sometimes beginners can ignore the cloud, but this is a mistake. Although Ichimoku analysis may look complex, once you grasp the basic concepts associated with using the indicator it is relatively simple to use.

Learning the Cloud

Initially, start off by learning the names associated with the indicator:

Senkou Span A: (tankan + kijun)/2, pushed 26 periods ahead and top of cloud.

Senkou Span B: (highest high + lowest low)/2, for the previous 52 periods, pushed 26 periods ahead and base of cloud.

Tenkan line: 9 period EMA

Kijun line: 26 period EMA

Chikou line: Today’s closing price plotted 26 periods behind.

The top and the base of the cloud act as support and resistance, but the cloud itself also determines trend: above the cloud is considered a bullish signal, below the cloud is bearish and within the cloud there is no prevailing trend.



The tankan and Kijun lines are also useful support and resistance levels and they can be used to determine bullish or bearish signals and their associated strengths.

Bullish Signals using Ichimoku analysis:

Strong

Price action is above the cloud

Tenkan crosses above the kijun line and it must occur above the cloud

Chikou is also above the cloud

Medium

Price action is still above the could

Tenkan crosses above the kijun but this time it occurs in the cloud

Chikou is above the cloud

Weak

If price action is below the cloud and if none of the above occurs then the signal could be weak, for example, if the tenkan crosses below the kijun when it is above the cloud even if the chikou line is above the cloud it suggests the bullish trend may be weakening.

Example: strong bullish signal



Bearish Signals

Strong

Price action is below the cloud

Tenkan crosses below the kijun line and it occurs below the cloud

Chikou is below the cloud

Medium

Price action is below the cloud

Tenkan crosses below the kijun and it occurs in the cloud

Chikou is below the cloud

Weak

If none of the above occurs then the signal could be weak, for example: tenkan crosses over kijun from above and it occurs below the cloud and the chikou is below the cloud, but price action is above the cloud.

Example: strong bearish signal

Currency Pairs

Every currency pair has qualities unique to it. Find out what those qualities are.

Much has been written about the suitability of technical analysis for trading in the currency markets. While this is undoubtedly true, it can leave traders, particularly those new to the currency markets, with the impression that all technical tools are equally applicable to all major currency pairs. Perhaps most dangerous from the standpoint of profitability, it can also seduce traders into searching for the proverbial silver bullet: that magic technical tool or study that works for all currency pairs, all the time. However, anyone who has traded Forex for any length of time will recognise that, for example, dollar/Yen (USD/JPY) and dollar/Swiss (USD/CHF) trade in distinctly different fashions.

Why, then, should a one-size-fits-all technical approach be expected to produce steady trading results? Instead, traders are more likely to experience improved results if they recognise the differences between the major currency pairs and employ different technical strategies to them. This article will explore some of the differences between the major currency pairs and suggest technical approaches that are best suited to each pair's behavioral tendencies.

The Biggie

By far the most actively traded currency pair is euro/dollar (EUR/USD), accounting for 28 percent of daily global volume in the most recent Bank for International Settlements (BIS) survey of currency market activity. EUR/USD receives further interest from volume generated by the Euro-crosses (e.g. euro/British pound (EUR/GBP), EUR/CHF and EUR/JPY, and this interest tends to be contrary to the underlying U.S. dollar direction. For example, in a U.S. dollar-negative environment, the Euro will have an underlying bid stemming from overall U.S. dollar selling. However, less liquid dollar pairs (e.g. USD/CHF) will be sold through the more liquid Euro crosses, in this case resulting in EUR/CHF selling, which introduces a Euro offer into the EUR/USD market.

This two-way interest tends to slow Euro movements relative to other major dollar pairs and makes it an attractive market for short-term traders, who can exploit "backing and filling." On the other hand, this depth of liquidity also means EUR/USD tends to experience prolonged, seemingly inconclusive tests of technical levels, whether generated by trendline analysis or Fibonacci/Elliott wave calculations. This suggests breakout traders need to allow for a greater margin of error: 20-30 pips. (A pip is the smallest increment in which a foreign currency can trade with respect to identifying breaks of technical levels.) Another way to gauge whether EUR/USD is breaking out is to look to the less liquid USD/CHF and GBP/USD. If these pairs have broken equivalent technical levels, for example recent daily highs, then EUR/USD is likely to do the same after a lag. If "Swissy" and "Cable" (popular name for British pound) are stalling at those levels, then EUR/USD will likely fail as well.

Customise Your Settings

In terms of technical studies, the overwhelming depth of EUR/USD suggests that momentum oscillators are well-suited to trading the euro, but traders should consider adjusting the studies' parameters (increase time periods) to account for the relatively plodding, back-and-fill movements of EUR/USD. In this sense, reliance on very short-term indicators (less than 30 minutes) exposes traders to an increased likelihood of "whipsaw" movements. Moving average convergence divergence (MACD) as a momentum study is well-suited to EUR/USD, particularly because it utilises exponential moving averages (greater weight to more recent prices, less to old prices) in conjunction with a third moving average, resulting in fewer false crossovers. Short-term (hourly) momentum divergences routinely occur in EUR/USD, but they need to be confirmed by breaks of price levels identified though trendline analysis to suggest an actionable trade. When larger moves are underway, traders are also likely to find the directional movement indicator (DMI) system useful for confirming whether a trend is in place, in which case momentum readings should be discounted, and might choose to rely on DI+/DI- crossovers for additional trade entry signals.

Second Place

The next most actively traded currency pair is USD/JPY, which accounted for 17 percent of daily global volume in the 2004 BIS survey of currency market turnover. USD/JPY has traditionally been the most politically sensitive currency pair, with successive U.S. governments using the exchange rate as a lever in trade negotiations with Japan. While China has recently replaced Japan as the Asian market evoking U.S. trade tensions, USD/JPY still acts as a regional currency proxy for China and other less-liquid, highly regulated Asian currencies. In this sense, USD/JPY is frequently prone to extended trending periods as trade or regional political themes (e.g. yuan revaluation) play out.

For day-to-day trading, however, the most significant feature of USD/JPY is the heavy influence exerted by Japanese institutional investors and asset managers. Due to a culture of intra-Japanese collegiality, including extensive position and strategy information-sharing, Japanese asset managers frequently act in the same direction on the yen in the currency market. In concrete terms, this frequently manifests itself in clusters of orders at similar price or technical levels, which then reinforce those levels as points of support or resistance. Once these levels are breached, similar clusters of stop loss orders are frequently just behind, which in turn fuel the breakout. Also, as the Japanese investment community moves en masse into a particular trade, they tend to drive the market away from themselves for periods of time, all the while adjusting their orders to the new price levels, for instance raising limit buy orders as the price rises.

An alternate tactic frequently employed by Japanese asset managers is to stagger orders to take advantage of any short-term reversals in the direction of the larger trend. For example, if USD/JPY is at 115.00 and trending higher, USD/JPY buying orders would be placed at arbitrary price points, such as 114.75, 114.50, 114.25 and 114.00, to take advantage of any pullback in the broader trend. This also helps explain why USD/JPY frequently encounters support or resistance at numerically round levels, even though there may be no other corresponding technical significance.

Take A Look at Trendlines

Turning to the technical side of USD/JPY, the foregoing discussion suggests trendline analysis as perhaps the most significant technical tool for trading USD/JPY. Because of the clustering of Japanese institutional orders around technical or price levels, USD/JPY tends to experience fewer false breaks of trendlines. For example, large-scale selling interest at technical resistance will need to be absorbed if the technical level is to be broken. This is likely to happen only if a larger market move is unfolding, and this suggests any break will be sustained. This makes USD/JPY attractive for breakout traders who employ stop-loss entry orders on breaks of trendline support or resistance. Short-term trendlines, such as hourly or 15 minutes, can be used effectively, but traders need to operate on a similarly short-term basis; daily closing levels hold the most meaning in USD/JPY. In terms of chart analysis, Japanese institutional asset managers rely heavily on candlestick charts (which depend heavily on daily close levels) and traders would be well-advised to learn to recognise major candlestick patterns, such as doji, hanging man, tweezer tops/bottoms and the like. When it comes to significant trend reversals or pauses, daily close (10 p.m. GMT), candlesticks can be highly reliable leading indicators.

The yen discussion above also highlighted the factors behind the propensity of USD/JPY to trend over the medium-term (multiweek). This facet suggests traders should look to trend following tools such as moving averages (21- and 55-day periods are heavily used), DMI, and Parabolic SAR. (This refers to J. Welles Wilder Jr.'s Parabolic System. SAR stands for stop and reverse.) Momentum oscillators such as the relative strength index (RSI), MACD or stochastics should generally be avoided, especially intraday, due to the trending and institutional nature driving USD/JPY. While a momentum indicator may reverse course, typically suggesting a potential trade, price action often fails to reverse enough to make the trade worthwhile due to underlying institutional interest. Instead of reversing along with momentum, USD/JPY price action will frequently settle into a sideways range, allowing momentum studies to continue to unwind, until the underlying trend resumes. Finally, Ichimoku analysis (roughly translated as one-glance cloud chart) is another largely Japanese-specific trend identification system that highlights trends and major reversals.

A Look At Some Illiquid Currencies

Having looked at the two most heavily traded currency pairs, let's now examine two of the least liquid major currency pairs, USD/CHF and GBP/USD, which pose special challenges to technically oriented traders. The so-called Swissy holds a place among the major currency pairs due to Switzerland's unique status as a global investment haven; estimates are that nearly one-third of the world's private assets are held in Switzerland. The Swiss franc has also acted historically as a so-called "safe-haven" currency alternative to the U.S. dollar in times of geo-political uncertainty, but this dimension has largely faded since the end of the Cold War. Today, USD/CHF trades mostly based on overall U.S. dollar sentiment, as opposed to Swiss-based economic fundamentals. The Swiss National Bank (SNB) is primarily concerned with the franc's value relative to the euro, since the vast majority of Swiss trade is with the European Union, and Swiss fundamental developments are primarily reflected in the EUR/CHF cross rate.

Liquidity in USD/CHF is never very good, and this makes it a favorite "whipping horse" for hedge funds and other speculative interests looking to maximise the bang for their buck. The lower liquidity and higher volatility of Swissy also makes it a significant leading indicator for major U.S. dollar movements. Swissy will also lead the way in shorter-term movements, but the overall volatility and general jitteriness of USD/CHF price action makes false breaks of technical levels common. These false breaks are frequently stop-loss driven and it is not unusual for prices to trade 15-25 points through a support/resistance level before reversing after the stop losses have been triggered. In strong directional moves, USD/CHF price action tends toward extreme one-way traffic, with minimal backing and filling in comparison to EUR/USD.

Cable (GBP/USD), or sterling, also suffers from relatively poor liquidity and this is in part due to its higher pip value (U.S. dollars) and the relatively Euro-centric basis of U.K. trade. Sterling shares many of the same trading characteristics of Swissy outlined just above, but Cable will also react sharply to U.K. fundamental data as well as to U.S. news. Sterling's price action will also display extreme one-way tendencies during larger moves, as traders caught on the wrong side chase the illiquid market to the extremes.

Focus On Risk Management

The volatility and illiquidity of Swissy and sterling suggests traders need to use a more proactive overall approach to trading these pairs, particularly concerning risk management (i.e. position size in relation to stop levels). With regard to technical tools, the tendency for both pairs to make short-term false breaks of chart levels suggests breakout traders need to be particularly disciplined concerning stop entry levels and should consider a greater margin of error on the order of 30-35 points. In this sense, trendline analysis of periods less than an hour tends to generate more noise than tradable break points, so a focus on longer time periods (four hours-daily) is likely to be more successful in identifying meaningful breaks. By the same token, once a breakout occurs, surpassing the margin of error, the ensuing one-way price action favors traders who are quick on the trigger, and this suggests employing resting stop-loss entry orders to reduce slippage. For those positioned with a move, trailing stops with an acceleration factor, such as parabolic SAR, are well suited to riding out directional volatility until a price reversal signals an exit. Of course, placing contigent orders may not necessarily limit your losses.

The volatility inherent in Cable and Swissy makes the use of short-term (hourly and shorter) momentum oscillators problematic, due to both false crossovers and divergences between price/momentum that frequently occur in these time frames. Longer-period oscillators (four hours and more) are best used to highlight potential reversals or divergent price action, but volatility discourages initiating trades based on these alone. Instead, momentum signals need to be confirmed by other indicators, such as breaks of trendlines, Fibonacci retracements or parabolic levels, before a trade is initiated.

Try A Larger Retracement

With regard to Fibonacci retracement levels, the greater volatility of Cable and Swissy frequently sees them exceed 61.8-percent retracements, only to stall later at the 76.4-percent level, by which time most short-term Elliott wave followers have been stopped out. Short-term spike reversals of greater than 30 points also serve as a reliable way to identify when a directional surge, especially intraday, is completed, and these can be used as both profit taking and counter-trend trading signals. For counter-trend, corrective trades based on spike reversals, stops should be placed slightly beyond the extreme of the spike low/high. A final technical study that is well suited to the explosiveness of Swissy and sterling is the Williams %R, an overbought/oversold momentum indicator, which frequently acts as a leading indicator of price reversals. The overbought/oversold bands should be adjusted to -10/-90 to fit the higher volatility of Cable and Swissy. As with all overbought/oversold studies, however, price action needs to reverse course first before trades are initiated.

It's Not One Size Fits All

Traders who seek to apply technical trading approaches to the currency market should be aware of the differences in the trading characteristics of the major currency pairs. Just because the euro and the pound are both traded against the dollar does not mean they will trade identically to each other. A more thorough understanding of the various market traits of currencies suggests that certain technical tools are better suited to some currency pairs than others. A currency-specific approach to applying technical analysis is more likely to produce successful results than a one-size-fits-all application across all currency pairs.

Charting: Bars vs. Candlesticks

What are bars and candlesticks?

A chart is a graphical representation of historical prices. The most common chart types are bar charts and candlestick charts. Although these two chart types look quite different, they are very similar in the information they provide.

Bar and candlestick charts are separated into different timeframes. Each bar or candlesticks represent the high, low open and close price for a specific period of time.

When looking at a daily chart, each bar/candle represents one day of trading activity

When looking at a 15min chart, each bar/candle represents a 15 min period, or session, of trading activity.

Why are bars and candlesticks important?

Technical Analysis includes the study and mapping of trends and price patterns through various technical indicators, or studies. This relationship between price and time can help traders not only see and interpret more data, but can also help pinpoint areas of indecision or reversal of sentiment. (This will be discussed in more detail within the Understanding Candlesticks section of the course) As a result, technical analysis is used to help determine the probabilities entries and exits in order to develop a strategy, or methodology.

Example 1 – Candlesticks



Bearish candles are typically red. It means the opening price was higher than the closing price for the specified time interval. Bullish candles are typically green. It means the opening price was lower than the closing price for the specified time interval.



Example 2 – Bars

Bearish bars are typically red. It means the opening price was higher than the closing price for the specified time interval. Bullish bars are typically green. It means the opening price was lower than the closing price for the specified time interval.