For the benefit of Ed and maybe others on here, I just thought I'd post this chart from this morning, to show some examples of candlestick movements.
Cable this morning. As you can see, price was ranging through the night, with the odd half-hearted breakout here and there. Then, at 7.15gmt, a harami formed. A harami is a small candle that forms sort of "inside" the range of the previous candle. (Harami is Japanese for "pregnant".....I guess you can see the significance!) A harami is a candle reversal signal, and once it's formed, we have to wait for a confirmation from the next candle. Indeed, the next candle confirmed nicely, and led to a potential 30-odd pip move.
Number 2 pin-points 3 dojis which have come at the bottom of a move. Dojis aren't reversal signals as such, but rather provide you with a "watch closely" notice. Dojis signify indecision, and three of them one after the other tell you that there's a LOT of indecision! There was no indecision with the fourth candle, which rose, with authority, to punch through the .00 psych line. Number 3 just signifies a small consolidation period before price resumes its movement north. Number 4 shows you that price has hit the .50 psych line, and we then have a "dark cloud cover" candle, or a "bearish piercing pattern", with a very bearish upper shadow. This is another significant potential reversal signal, but like all other patterns, needs a confirmation from the next candle. So far, as I type this, price is just moving sideways in another consolidation.
I've just used these as examples. I didn't take any moves upwards, as price is below the Pivot Point, so short trades should be the order of the day.
I hope this info helps in some small way.Ignored
Thank you So much for your wonderful instruction here, because this is quite helpful. Please keep it up, if you don't mind. This is the way I can understand what to look for, how to get into the moves and where to take profit. Appreciate what you put into this thread a lot!