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Orderflows Inner Circle Weekly Webinar #26 – Candlesticks PDF Free Download

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Orderflows Inner Circle Weekly Webinar #26 – Candlesticks PDF Free Download

Orderflows Inner Circle Weekly Webinar #26 – Candlesticks PDF free Download. Think more deeply and widely.

Combining Order Flow With Candlestick Patterns
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
I am always looking for positive answers to particular questions. I eliminate
the candlesticks that make up the normal routine of trading. The bars with
no distinguishable patterns to them.
Over the course of the trading day most of the candlesticks have no
distinguishable patterns to them, but then you come across one that is
outside the normal routine of trading. Now you have something potentially
trading.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Order flow analysis can be used with most forms of existing market analysis.
So if you are already have the skills to analyze the market with a certain set
of skills, then adding order flow to it will help you.
A question I get asked a lot is “how can I integrate order flow with my
existing way of trading.”
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
If you have been around the markets long enough I am sure you have
experimented with many different forms of market analysis. Some
resonated with you and a lot did not. The forms of analysis that stayed with
you forms the basis of your current trading.
For me, I have tried so many forms of analysis when I was getting started,
some of which made no sense and some made perfect sense and it still helps
form the basis of my trading today.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Technical analysis that worked for me that formed the foundation of my
trading today:
Market Profile
Candlesticks
Volume and Open Interest Analysis
Wave Analysis
Trend Following
Seasonal Analysis
Technical Analysis by Tom Demark, Robert Rotella, Larry Williams.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Order flow can be combined with most forms of market analysis. What I will
discuss today is order flow and candlesticks.
Now with candlesticks, there are only a handful of patterns that I look for out
of the hundreds that are available. Why? These are the patterns that I have
found in my own trading that are consistent for me.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
When it comes to candlesticks I am not a purist in the sense that a shooting
star has to be preceded with a gap from the close of the previous bar. Yes a
gap would potentially make it stronger, but when dealing intraday you don’t
get gaps.
It goes back to when candlesticks analysis was originally invented. It was
based on the whole trading day. Not intraday which is how I am using.
I don’t know how rice was traded 300 years ago when candlesticks were
initially used, but up until about 15 years ago, Japanese Commodity Futures
were traded on basically rings. Where they would price would move up and
down until everyone was satisfied and everything traded at one price. They
could have 5 or 7 rings a day based on the commodity.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
So what are the candlestick patterns I like to look for?
Hammer (bullish)
Shooting Star (bearish)
These patterns have always fascinated because they both exhibit long wicks
and small bodies which indicated price rejection.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
How do I define a hammer?
Market in downtrend.
Small green body.
Green body near top of bar.
Wick size is 2-3 times the length of the body.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
How do I define a shooting star?
Market in an uptrend.
Small red body.
Red body near bottom of bar.
Wick size is 2-3 times the length of the body.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
The problem that I have always had
with trading candlestick patterns
is sometimes they work,
sometimes they don’t.
Just like everything else.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
By introducing order flow analysis to a candlestick patterns you are able to
filter out trades that don’t work. They doesn’t mean you will filter out all the
bad trades, there is always an uncertainty in trading and you will still have
failed trades, but if you can reduce the overall number of losing trades
without removing too many of your winning trades is it worth it to you?
Order Flow
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
How do I define a hammer?
Market in downtrend.
Small green body.
Green body near top of bar.
Wick size is 2-3 times the length of the body.
Here is the secret sauce:
Look for selling imbalances in the wick of the bar.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
How do I define a shooting star?
Market in an uptrend.
Small red body.
Red body near bottom of bar.
Wick size is 2-3 times the length of the body.
Here is the secret sauce:
Look for buying imbalances in the wick of the bar.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
A problem with candlestick analysis though is often times you look and think
you see something that really isn’t there. What I mean is a formation that is
not really a formation.
But with a hammer and shooting star there is no mistaking the long wick.
What I like to see is long wicks with opposite imbalances in them.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Sometimes they work out as they should
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Sometimes they fail
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Regular with no imbalance
One failed
One worked
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Without imbalances more failures
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Without imbalances
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Not a red body
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Eliminate the failed signals
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Filter out losers…
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
With the imbalances
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Sideways
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Failed but why?
Market in fast market.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Yes
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Yes
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Minute charts…
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Yes
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
No imbalances
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
6E 8 Range
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Is this one?
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Yes
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Yes
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Yes
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Yes, small winner
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Yes
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
No secret sauce failed…
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
No secret sauce failed…
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Not a red body…
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Maybe, but
Want higher body
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Okay, let’s recap…
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
If it is a hammer. I like to see selling imbalances in the wick because it tells
me there was strong aggressive selling early but for whatever reason the
market conditions changed.
If it is a shooting star. I like to see buying imbalances in the wick because it
tells me there was strong aggressive buying early but for whatever reason
the market conditions changed.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
How do I define a hammer?
Market in downtrend.
Small green body.
Green body near top of bar.
Wick size is 2-3 times the length of the body.
Look for selling imbalances in the wick of the bar.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
How do I define a shooting star?
Market in an uptrend.
Small red body.
Red body near bottom of bar.
Wick size is 2-3 times the length of the body.
Look for buying imbalances in the wick of the bar.
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Divergence
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
Divergence
Orderflows Inner Circle Weekly Webinar #26 –Candlesticks
No secret sauce but divergence, one loser one winner