Hey everybody,
I have been reading up on candlesticks and am hoping to get a more professional outlook on my analysis of these two charts: AUDUS & USDCAD. My basis is Vegas Wealth Builder overlay (they both have current signals that have reached or exceeded the appropriate fib level for that pair), with basic candlestick theory for reading possible reverses/continuations.
Any insight and comments/critiques would be greatly appreciated
First off AUDUSD:
While this chart is ending with a strong upward signal, it has not broken the previous 3 candles' highs. The second candle from the end shows a strong downward signal which completely engulfs the previous. Speaking of the third, would this be considered a Gravestone Doji? I know the body does show a very small open/close discrepancy and the shadow is quite short, but I am reading this as a possible reversal.
My analysis is that the strong downward pull of the second last candle (encompassing the previous one), reinforced by what looks to me to be a Gravestone Doji is forecasting a trend reversal.
If I am reading this correctly and these are strong signals, when/where should I sell? Should I take advantage of the high price now and purchase now? or place a sell stop just below the last candles low (.7630 or .7629).
Next is USDCAD:
I am reading the 4th candle (long-legged doji) & the 5th as showing indecision in the market. The last candle, however, fully encompassing the previous in a large downward movement leads me to believe that there may be a continuation in the current bearish trend. I'm not really sure if I should wait to see if this one develops further (sell-stop?) or jump in right away expecting more short action. I am leaning towards waiting...
If sell-stop, where would I place the order?
Thanks for any insight into these guys...
D.
I have been reading up on candlesticks and am hoping to get a more professional outlook on my analysis of these two charts: AUDUS & USDCAD. My basis is Vegas Wealth Builder overlay (they both have current signals that have reached or exceeded the appropriate fib level for that pair), with basic candlestick theory for reading possible reverses/continuations.
Any insight and comments/critiques would be greatly appreciated
First off AUDUSD:
While this chart is ending with a strong upward signal, it has not broken the previous 3 candles' highs. The second candle from the end shows a strong downward signal which completely engulfs the previous. Speaking of the third, would this be considered a Gravestone Doji? I know the body does show a very small open/close discrepancy and the shadow is quite short, but I am reading this as a possible reversal.
My analysis is that the strong downward pull of the second last candle (encompassing the previous one), reinforced by what looks to me to be a Gravestone Doji is forecasting a trend reversal.
If I am reading this correctly and these are strong signals, when/where should I sell? Should I take advantage of the high price now and purchase now? or place a sell stop just below the last candles low (.7630 or .7629).
Next is USDCAD:
I am reading the 4th candle (long-legged doji) & the 5th as showing indecision in the market. The last candle, however, fully encompassing the previous in a large downward movement leads me to believe that there may be a continuation in the current bearish trend. I'm not really sure if I should wait to see if this one develops further (sell-stop?) or jump in right away expecting more short action. I am leaning towards waiting...
If sell-stop, where would I place the order?
Thanks for any insight into these guys...
D.
