Get started

Chart Patterns

PCR Trading Strategy The Put-Call Ratio (PCR) is a popular trading strategy that analyzes the ratio of put options to call options traded in the market, providing insights into market sentiment and potential price movements. It's a contrarian indicator, meaning that when the PCR is very high, it might suggest a bearish sentiment that could be followed by a price increase, and vice versa. Traders use the PCR to identify potential reversals and anticipate changes in market direction.
BSE:SENSEXEducation
by SkyTradingZone
14
2 Candlestick Patterns That Actually Work — when used right !Intro: Most traders learn candlestick patterns from cheat sheets — Engulfing, doji, hammer, shooting star… But not all patterns are created equal. The key isn’t memorizing names — it’s understanding which ones hold real weight when used with structure. Here are 2 powerful candlestick patterns that can shift the game — if you know when to trust them. ⸻ 1. The Rejection Wick with Body Close Inside Structure (a.k.a. Rejection Candle) What It Looks Like: • A long wick that pierces above/below a key zone • Candle body closes back inside the range • Usually forms at OB, FVG, or liquidity sweep zones Why It Works: • It shows trapped traders and smart money rejection • Confirms a false breakout and reclaim of intent • Often leads to strong reversals or clean follow-throughs When To Use It: • After liquidity sweep • Near HTF zone (OB / supply-demand) • When followed by structure shift or BOS Pro Tip: Combine with session awareness (NY / London open) for killer confluence. ⸻ 2. The Inside Bar (Breakout Continuation Bar) What It Looks Like: • A small candle completely inside the range of the previous candle • Price consolidates within one bar’s high-low range • Often signals coiled pressure Why It Works: • It shows price resting before continuation • When it forms near structure (OB or demand), the breakout that follows is often explosive • Stop-loss is easy to place (above/below the mother bar) When To Use It: • After a BOS or clean impulse • As a continuation signal on HTF • Inside compression → expansion zones Pro Tip: Trade the breakout of the inside bar with bias confirmation — not in both directions. ⸻ Final Word: Candlestick patterns don’t work on their own. They work when: • Context is clear • Liquidity has been handled • Market structure aligns If you trade candles without logic, you’re reacting to emotion. But when you pair them with narrative and zones? They become weapons.
PEPPERSTONE:XAUUSDEducation
by sparkrlight
1
What is Inside out Candlestick Pattern ????The Inside Out pattern builds upon a classic engulfing setup by adding a breakout confirmation, making it a refined and filtered approach to candlestick analysis. Bullish Inside Out Logic: - Bar must be a bullish engulfing candle (engulfs previous bearish candle). - Current bar must be bullish and must close above the high of the engulfing candle (a bullish breakout). - When this setup is confirmed, a shaded green box is drawn around the range of the engulfing candle and its preceding bar. Bearish Inside Out Logic: - Bar must be a bearish engulfing candle (engulfs previous bullish candle). - Current bar must be bearish and must close below the low of the engulfing candle (a bearish breakdown). - When confirmed, a red box highlights the zone formed by the engulfing candle and its prior bar. I have already published a free indicator around on this candlestick pattern click on the link to use it.
OANDA:XAUUSDEducation
by Shivam_Mandrai
8
RSI Divergence part 2The relative strength index (RSI) is calculated using the following formula: RSI = 100 – 100 / (1 + RS) Where RS = Average gain of up periods during the specified time frame / Average loss of down periods during the specified time frame asset price is considered overbought (due for a correction) when RSI is above 70, and oversold (due for a rebound) when it is below 30. Some traders use more extreme levels (80/20) to reduce false readings. In a strong uptrend, RSI will often reach 70 and beyond for sustained periods, and downtrends can stay at 30 or below for a long time. While general overbought and oversold levels can be accurate, they may not provide the most timely signals for trend traders.
Education
by SkyTradingZone