A Detailed Thread on Candlesticks you NEED to know 🧵
These candlestick patterns can be a leading factor in a trend change before many know it’s even happening 👇🏼
1. Bullish Inverted Hammer
Strong reversal candle in a downtrend and as you can see above this one led as the market bottom leading up for a 65 point move after.
Always want to find it after a big red candle.
2. One of my favorite setups is the Harami, in this case it was a bearish harami. This candle is near the top of the previous large green candle & would be vice versa for the bulls if it was on bottom of a previous large red candle with same sized wicks on both ends. 30+ points
Here is also an example of a bull harami relating to the last post.
3. Gravestone Doji. A DEADLY candle as you can see here where we had a 200+ point sell off of it… sellers take over here after an uptrend and starts the trend reversal to the downside. Long higher wick with a Doji type close near bottom of candle.
4. Spinning Top reversal here after a strong red candle or green candle forming at the end of the candle usually leads for a minimum 75-100% retrace of that previous candle. In this case a 60+ point move 🚨
Here you can also see a bearish spinning top that led to downside
Also regarding those last posts you can also categorize some as Morning Doji Star and or Evening Doji Star reversals!
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For example if you get a credit spread with a premium of .20 between the spreads then your goal is for that premium to theta out to 0 for full 100% profit.
Example of spreads:
$SPY Put Credit Spread
Put credit spread is actually a bullish credit spread
I want to say something that I think needs to be said.
I see people posting profits of $1M daily and no hate to that at all in fact I can’t be more happy to those that do.
It’s a dream come true if your making that much daily.
Continued…
But some people get skewed seeing this and they want to be on that level day 1.
You need to build boundaries and grow into that level of trading. Not everyday can it happen and you shouldn’t be shooting for the stars day 1 as those stars will burn straight through your account.
I’ve consistently posted over the past 4-8 weeks give or take a few losing days $1200-$2500 days including the personal acccount and challenge account.
Being able to show you it is possible with a small account and building consistency is key over $1M days to start.