Lingrid

THE DRIVING FORCE IN THE CANDLE

Education
FX:EURUSD   Euro / U.S. Dollar
Hello everybody!

Today I want to discuss with you the movement hidden in the candle.
This struggle inside the candle can tell us a lot about the future movement.
Let's go!

Fighting
Inside each candle there is a serious struggle between buyers and sellers.
Unfortunately, most traders not only do not notice, but also do not think about this struggle, and this is very valuable information.
The price does not move just like that, you should understand this.

Understanding which side is winning gives us information that helps us to keep a deal more confident or close it.

Candles
We all know that candles consist of a body and shadows.
But not everyone understands how candles are formed.

Let's take the first candle on the chart.
This is a green full-bodied candle, without shadows.
Looking at it, we understand that the strength of buyers is much higher than that of sellers.
Specifically, there are no traces of sellers in this candle at all.
This means that the uptrend is strong and there is no resistance from sellers, which means that if we have opened a long, we can confidently hold the position.

The second candle already has shadows.
These shadows are not large, but they indicate to us that sellers still managed the market for some time.
From the first second, sellers pushed the price down, after which buyers forcefully overcame the situation in their favor - this is how the lower shadow was formed.
The upper shadow is a movement created by sellers at the end of the candle formation.
By such a candle, we can understand that the trend is still strong, although sellers are already pushing harder, but buyers are still winning quite confidently.
We can still hold our position with sufficient confidence.

The third candle has shadows even longer than the second.
Does this mean that it's time to close a long position?
No!
Buyers are still strong, but sellers are not asleep either.
We should be on the alert and wait for the next candle to show.

The last fourth candle has very long shadows.
There is no winner here anymore.
There is an equal struggle going on here.
And if there is no winner, it means that the price can go anywhere.
If you look in the context of the previous candles, you can understand that buyers have lost strength, and sellers have become more confident.
As we can see at the beginning of the candle formation, the sellers were able to lower the price significantly, after which the sellers got down to business.
The price rose until the sellers pushed the price down again.
In this candle, both buyers and sellers controlled the market for the same time.
But we already understand that sellers are gaining momentum and a trend change is possible.
The last candle is the well-known Doji, after which you will often observe a reversal.

To better understand the movement, see the lower timeframes.
There you will be able to look at the price under a microscope to understand who is still winning the market.


Result
Each candle contains information.
A professional trader knows how to interpret each movement correctly.
Maybe it's a correction?
Or maybe it's a trend reversal?
Using different timeframes, you can better understand who is dominating the market right now.
Do not be lazy to analyze.
Trade wisely!

Good luck!

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻

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