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RSS (c) Financial Times Limited – 2010

  • Positive employment data lift US stocks February 3, 2012
    US stocks hit six-month high on news that unemployment fell to a three-year low in January with banks among the main beneficiaries […]
  • Stocks surge on strong US jobs data February 3, 2012
    Equities and commodities benefit from robust US employment data with the FTSE All-World index at its best levels since start of August […]
  • Volatile banks push Europe higher February 3, 2012
    Rapid gains for Société Générale and Crédit Agricole helped the FTSE Eurofirst rise for the fourth consecutive session on Friday […]
  • Chartists have a cross to bear February 3, 2012
    Analysts’ favourite is little help in spotting trends, says David Schwartz […]
  • Insurers head gains with FTSE eyeing 6,000 level February 3, 2012
    London makes broad-based gains with only six FTSE 100 stocks falling as US jobs data and purchasing managers’ surveys lift sentiment […]
  • Look before you leap, Mr Zuckerberg February 3, 2012
    In an open letter to Facebook founder Mark Zuckerberg, Joe Saluzzi of Themis Trading suggests the stock may become a chip in a giant casino […]
  • Growing pains for industry in a hurry February 3, 2012
    A raft of challenges made 2011 the toughest year yet for providers […]
  • Asian stocks drift lower on weak earnings February 3, 2012
    Asian stocks dip ahead of US jobs data later in the day, while downbeat corporate earnings continue to sway investor sentiment […]
  • Caesars plans IPO to allow investors to sell February 2, 2012
    Casino operator makes fresh attempt to list publicly and aims to raise only m but move will allow unnamed co-investors the opportunity to exit their investment […]
  • Miners power FTSE to six-month high February 2, 2012
    ENRC misses out on rally fuelled by Glencore and Xstrata’s proposed merger while disappointing results elsewhere drag on London index […]

Archive for shooting star candle

Japanese candlesticks – shooting star candle explained

By admin · Comments (0)
Saturday, October 23rd, 2010

The upthrust, or shooting star candle is one of the most profitable trading signals we can watch for on our candlestick charts, and as with all candle analysis, it makes no difference what time frame we are trading , the market, or indeed the instrument, as candle charts are common to all assets, whether you trade forex, commodities or equities. In this case the signal came on a daily stock chart, and we were helped further on this occasion by having volume to confirm our analysis. Nevertheless, the shooting star candle is one of a handful of signals that I use myself every day, as it can be a powerful signal of a weak market or one that is about to turn. As always we have to be patient and wait for the market to validate the signal. In simple terms, the shooting star is signalling that the bulls are running out of steam and the bears are beginning to take control of the market, and for a strong signal we need to see a small body ( which can be positive or negative ) and a deep wick to the upper body. The height of the wick should be at least three times the height of the body to qualify as a shooting star candle. The wick or shadow to the top of the candle, indicates that the bulls are trying to take the market higher, but have failed, falling back exhausted as selling pressure has prevented the market rising further, and therefore signalling a potential turning point.
In this case the signal was preceded by a small doji, following by a hanging man, before the large shooting star candle on the 16th, which was followed the day after by a wide spread down candle, suggesting further weakness on the daily chart. The following day we received an additional signal with another shooting star candle, accompanied by excessively high volume, a clear confirmation that the market was weak with the market makers struggling to sell into an unresponsive market. Following this clear signal we then sold, as the market slid lower, adding further confirmation to the move breaking below the short term moving averages and approaching the 200 day moving average below.
The shooting star candle is one you will see every day, in every chart, no matter what time frame you choose. It is one of the basic signals that every technical chartist learns, and if I had to trade just one signal, this would be it. If you are scalping in the forex markets then this is a classic, but with no volume to help us with our analysis, we must rely on additional signals such as support and resistance, moving averages, and Fibonacci to confirm this bearish signal. Its twin, the hammer, which we see after a sell off, or at the end of a bearish trend, is another strong signal, but on this occasion signals bullish sentiment entering the market, and a possible reversal higher as a result.
Categories : Reversal Patterns
Tags : candle cjart analysis, candlestick analysis, candlestick patterns, japanese candles, shooting star candle

Support & Resistance – Pound vs Dollar Daily Chart

By admin · Comments (0)
Monday, February 1st, 2010
Pound vs Dollar Japanese Candle Chart 1st February 2010

Possible Breakout - Daily Candle Chart GBP/USD 1st February 2010

If you are a technical currency trader, then support and resistance levels can provide excellent longer term forex trading opportunities in the spot markets, and the pound vs dollar daily chart is now approaching one of these key levels. For the last few months the currency pair has been bouncing between the 1.67 price point to the upside and 1.58 to the downside, creating a deep level of price congestion, which in turn has created the upper and lower levels of the sideways channel. To date these levels have held, but with the strong sell off in the UK pound of the last few days, we are now approaching the lower level, which to date has provided a platform of support, which has seen daily prices for the pound to dollar pair bounce higher on each occasion that the level has been tested. With the gbp/usd now falling fast, and approaching the 1.58 level once again, and break below here could signal a much deeper move, possibly as far as 1.50 in due course, which should present us with some excellent longer term trading opportunities. The key of course is to wait for the level to be broken by at least 2%, and once achieved then we can enter our trades, confident that any reversal higher now has potential resistance above, which should provide a barrier to any longer term recovery. The pound dollar daily chart is in a classic phase at present with all technical traders now waiting for the break below, whilst swing traders will be anticipating a bounce back higher once again, which is why we need to wait for a confirmation that the support level has been broken.

The MT4 platform from ODL offers all the above with the choice of either mini or standard trading accounts so you can begin to trade with as little as 500 euros so why not download your free demo copy of the metatrader 4 software by clicking on the following link – download metatrader free -  and get started today, and don’t forget to follow my daily posts for updates and analysis of the forex markets to help you with your forex trading – so good luck and good trading.

Categories : Reversal Patterns
Tags : bearish pattern, bullish engulfing, CAD/JPY, candle analysis, candle charts, candle patterns, candlestick analysis, candlestick charting, candlestick charts, candlestick patterns, candlestick trading, contination patterns, ECN broker, economic news, forex candlestick, hammer candle, japanese candle, japanese candles, Momentum Patterns, reversal candle, shooting star candle, simple moving averages, support and resistance, USD/SGD weeky chart

Spot Gold Prices – Daily Gold Chart Breakout

By admin · Comments (1)
Sunday, September 13th, 2009
Spot Gold Price Chart - Gold Breakout Daily Chart

Spot Gold Price Chart - Gold Breakout Daily Chart

This is a classic example of a breakout from a pennant pattern which we had been following in the spot gold market for several weeks, and is covered in more detail on my daily market commentary for the spot gold market. As we can see from the daily gold chart, spot gold prices had been consolidating in an increasingly narrow trading range, forming the pennant pattern as a result which is outlined with the two lines above and below which give the pattern it’s name. Such trading is typified by prices moving in a ever small range day after day, until one day we see the explosive breakout that occured in the spot gold market recently, with the breakout on this occasion coming to the upside. There are two things to note in order to trade such breakouts, and the first is simply that the longer the sideways consolidation continues, then the greater will be the force and speed of the breakout when it does occur – much like a tightly coiled spring. The second point to note is that generally the breakout will be in the same direction as that which the market was taking before the start of the consolidation, so in this case we were expecting a break to the upside as the more likely for spot gold prices in this case.

The question of course, is whilst we can see the pennant forming on the daily chart, how do we benefit as traders, and the simple answer is in two ways. First we can trade the breakout before it happens by placing a long straddle in position using options. This is known as a directionless trade, as we benefit whichever way the breakout comes, but ONLY if the trade is in place when the breakout occurs. Should the market continue to consolidate sideways, then this trade will lose, unless you sell any remaining option value back to the market. So the key to success with this trade is in the timing, and you must therefore allow sufficient time for the trade to develop such that the options do not expire before the breakout occurs, and my suggestion for such trades is normally around 3 months, which I suggested on this occasion to my regular readers. The second trading option is to wait for the breakout and then to trade in the direction the breakout has occurred once the market has settled – more risky as we often see considerable volatility following the breakout from the trading range, but nevertheless this is a second way to trade – however, my preferred trading strategy for breakouts is always to use the straddle option strategy wherever possible, and if you would like further details please just follow the link here which explains this in more detail.

If you are considering trading in the forex or commodities markets it is essential to use the best trading platform and in my view there is only one platform worth considering, and that’s Metatrader 4.  As one of the most advanced, yet intuitive, trading platforms available MT4 offers sophistication combined with simple order entry, execution and stop loss management and can be used with a host of expert advisors.   Secondly, of course, it is so important to have an account with a reputable forex broker who offers ECN execution -  in other words your trades are entered automatically into the market with no dealer or broker intervention, a huge benefit which allows you to scalp or trade in your preferred style, with no worry of slippage or of broker intervention on trading positions.

The MT4 platform from ODL offers all the above with the choice of either mini or standard trading accounts so you can begin to trade with as little as 500 euros so why not download your free demo copy of the metatrader 4 software by clicking on the following link – download metatrader free -  and get started today, and don’t forget to follow my daily posts for updates and analysis of the forex markets to help you with your forex trading – so good luck and good trading.

Categories : Reversal Patterns
Tags : bearish pattern, breakout pattern, bullish engulfing, CAD/JPY, candle analysis, candle chart analysis, candle pattern, candle patterns, candlestick charting, candlestick charts, candlestick patterns, candlestick trading, contination patterns, daily gold chart, dollar yen, dollar yen chart, ECN broker, economic news, evening star, falling window, forex candlestick, fundamental news, FX broker, gold options, hammer, japanese candle, japanese candles, live charts, live news, Momentum Patterns, option straddle strategy, pennant pattern explained, reversal candle, reversal pattern, reversals, shooting star, shooting star candle, simple moving averages, spot gold chart, straddle options, support and resistance, usd/sgd, USD/SGD weeky chart

Evening Star Candle – Euro Dollar Chart Today

By admin · Comments (0)
Tuesday, March 3rd, 2009
EUR/USD 5 minute Candle Chart - 3rd March 2009

EUR/USD 5 minute Candle Chart - 3rd March 2009

I just thought I would pop this chart up for you, which is from this afternoon’s trading on the 3rd March 2009, and is on the five minute chart for the euro dollar which was a great signal and an excellent trading opportunity. As you can see on the chart, we had a two hour rally from 12 until around 2 pm, and at this point we get a great signal, an up candle, followed by a gapped up ‘evening star’ sometimes called a spinning top, followed by a wide spread down bar – a classic reversal signal. At this point we are paying full attention, and waiting for any confirming signals which duly arrive on the next two bars with two consecutive shooting stars, signalling weakness, and confirming the earlier signal. Note also that both are contained within the body of the down bar. At this point we enter our short position and close out on the bullish engulfing candle at 16.30! They don’t come any better than that I can assure you, and a classic example of how candle patterns provide the clues to the market direction, but you always have to wait for the confirmation. I just wanted to share this one with you, as it is almost ‘text book’ analysis.

In order to help you with your trading I have added several new services to the site. First there is an economic calendar which provides details of all the fundamental news items from around the world, including details of the forecast and previous figures, but if you prefer your news on video, then the latest currency news is the place to go, with updates three times a day. In addition there is a live news feed, and for the latest prices, live currency charts covering over 70 of the world’s most popular traded pairs. Finally if you would like help with choosing your ECN broker, I have provided some guidance and suggestions for you, which I hope you fin useful.

Categories : Reversal Patterns
Tags : candle chart, candle patterns, candlestick pattern, eur usd, euro dollar, euro vs dollarm euro to dollar, evening star, reversal pattern, shooting star candle, spinning top
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RSS (c) Financial Times Limited – 2010

  • Stocks surge on strong US jobs data February 3, 2012
    Equities and commodities benefit from robust US employment data with the FTSE All-World index at its best levels since start of August […]
  • Dollar rises as jobs boost dents QE3 speculation February 3, 2012
    The dollar strengthens after US data show a larger than expected rise in employment with investors taking this as a positive signal on the economy […]
  • Riot halts Egypt bourse rally February 3, 2012
    Stock exchange index drops 2.2 per cent following deadly riots, following 28 per cent rise on January. […]
  • Aussie dollar hits five-month high February 2, 2012
    Currency bounces after data shows Australia’s trade surplus rises to a record high in 2011 while Swiss franc loses some of its recent strength […]
  • ‘Too early’ to spot gaps in global regulation February 2, 2012
    Increasing concern differences in the way G20 reforms on derivatives are being fleshed out by region could lead to ‘regulatory arbitrage’ […]
  • SNB head warns of political fallout after crisis February 2, 2012
    Thomas Jordan, acting chairman, says bank has come under domestic political pressure over the potential cost of further interventions […]
  • Jordan vow to continue SNB intervention February 2, 2012
    Thomas Jordan, acting head of Swiss National Bank and thrust into the limelight after his boss’s swift departure, promises to continue radical policies […]
  • China’s capital flight looks ready for take-off February 2, 2012
    As sentiment toward the renminbi sours and the political outlook is more uncertain, Henny Sender predicts more money will leave the mainland […]
  • Traders on alert for Swiss intervention February 2, 2012
    Franc reaches its strongest level against the euro in almost five months, putting it near the level at which the SNB has previously taken action […]
  • Production data boost stocks February 1, 2012
    Risk assets are firmer on better than expected manufacturing data from China, Germany, the UK and US, but concerns about America resurface […]

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