TUTORIAL
Tuesday's candle formed a Doji. A Doji is a candle pattern where the Open and Close are very close together and the candle has both upper and lower shadows. A Doji is a neutral candle and is neither bullish or bearish. The high of a Doji indicates resistance and the low support. As such I draw a horizontal support and resistance line. Notice the Spinning Top and two Doji remains between support and resistance. A breakout above resistance would indicate price is ready to move higher and a breakdown below support would indicate price is ready to move lower.
TRADING
A close above the resistance line would indicate a Long Trade setup and a close below the support lin would indicate a Short Trade setup.
Tuesday's candle formed a Doji. A Doji is a candle pattern where the Open and Close are very close together and the candle has both upper and lower shadows. A Doji is a neutral candle and is neither bullish or bearish. The high of a Doji indicates resistance and the low support. As such I draw a horizontal support and resistance line. Notice the Spinning Top and two Doji remains between support and resistance. A breakout above resistance would indicate price is ready to move higher and a breakdown below support would indicate price is ready to move lower.
TRADING
A close above the resistance line would indicate a Long Trade setup and a close below the support lin would indicate a Short Trade setup.