THIS IS WHY YOU FAIL AS A DAY TRADER.
(A Thread)
(A Thread)
Okay there are alot of reasons why you fail as a day trader but misunderstanding the cycle of the daily candlestick is a major reason.
Do you take trades and it suddenly reverses on you and completely goes the opposite way?
Do you always go through the frustration of watching price go your way after taking you out?
If you do, it means that you don't really understand the cycle of a daily candlestick.
Do you always go through the frustration of watching price go your way after taking you out?
If you do, it means that you don't really understand the cycle of a daily candlestick.
This thread is an introduction. There would be subsequent threads that further explains the cycle of daily candlesticks.
Get your notes and read the subsequent tweets carefully.
Get your notes and read the subsequent tweets carefully.
A friend of mine asked me a question that changed my entire view of the charts.
He said, "Do you know why the Daily Candlesticks all have wicks?"
He said, "Do you know why the Daily Candlesticks all have wicks?"
Without hesitation I replied, "Daily candlesticks have wicks because of the tug of war between buyers and sellers."
"This was sooo easyyy", I thought to myself.
"This was sooo easyyy", I thought to myself.
Well, I wasn't wrong but also not right.
He asked another question. He said, "On a bullish trading day, why do we first see price trade down before the up move and vice versa for a bearish trading day?".
I paused for a moment to think about it.
I knew that using the same logic I used for my first answer it would mean that sellers were in control at the beginning of the trading day then at some point, buyers took back control and vice versa.
This didn't make any sense!
I knew that using the same logic I used for my first answer it would mean that sellers were in control at the beginning of the trading day then at some point, buyers took back control and vice versa.
This didn't make any sense!
If this was to be the case, why did it happen almost everyday?
Why don't we see days where buyers are in complete control and vice versa?
Why don't we see days where buyers are in complete control and vice versa?
My friend said, "The buy before the sell is a manipulative move to trap buyers, the sell before the buy is also a manipulative move to trap sellers."
This was when it clicked!
This was when it clicked!
Every daily candlestick has the Open, High, Low and Close and all these points are very important.
Here's a pictorial explanation from today's price action on EURUSD
Study the annotations carefully.
Here's a pictorial explanation from today's price action on EURUSD
Study the annotations carefully.
On a bullish day, expect price to first trade down before the bullish move.
On a bearish day, expect price to first trade up before the bearish move.
On a bearish day, expect price to first trade up before the bearish move.
There's a whole lot more to learn about the cycle of the daily candlestick like AMD formations, Daily Bias, Daily Candlestick Patterns etc.
I'll make a second thread if this thread gets 50 Retweets.
I'll make a second thread if this thread gets 50 Retweets.
I hope this was insightful?
If it was, kindly FOLLOW, drop a LIKE and RETWEET to get this thread across to alot more people 🙏🏼
If it was, kindly FOLLOW, drop a LIKE and RETWEET to get this thread across to alot more people 🙏🏼
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PART 2
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