Bullish Candlesticks
Candles with large bodies toward the upside, as you will see in Figures 6.2 and 6.3 below, are very bullish. It means that the buyers are in control of the price action, and it is likely that they’ll keep pushing the price higher.
The candle not only tells you the price, it tells you that the bulls are winning and that they have power.
Figure 6.2 - Bullish candles.
Figure 6.3 - A series of bullish candles shows that bulls (buyers) are in control of the price.
Table of contents
- How to Day Trade for a Living
- Table of Contents
- Foreword
- Chapter 1: Introduction
- 2020 Hindsight
- Chapter 2: How Day Trading Works
- Day Trading vs. Swing Trading
- Buying Long, Selling Short
- Retail vs. Institutional Traders
- High Frequency Trading (HFT)
- Trade the Best, Leave the Rest
- Chapter 3: Risk and Account Management
- Three-Step Risk Management
- Trading Psychology
- Chapter 4: How to Find Stocks for Trades
- Stocks in Play
- Float and Market Cap
- Pre-Market Gappers
- Real Time Intraday Scans
- Planning the Trade Based on Scanners
- Chapter 5: Tools and Platforms
- What Broker to Use?
- Trade for Proprietary Trading Firms
- Trading Platform
- Real Time Market Data
- Nasdaq Level 2 and Bid-Ask
- Indicators on my Charts
- Buy and Sell Orders
- Hotkeys
- Watchlist and Scanners
- Community of Traders
- Chapter 6: Introduction to Candlesticks
- Price Action and Mass Psychology
- Bullish Candlesticks
- Bearish Candlesticks
- Indecision Candlesticks
- Candlestick Patterns
- Chapter 7: Important Day Trading Strategies
- Trade Management and Position Sizing
- Strategy 1: ABCD Pattern
- Strategy 2: Bull Flag Momentum
- Strategies 3 and 4: Reversal Trading
- Strategy 5: Moving Average Trend Trading
- Strategy 6: VWAP Trading
- Strategy 7: Support or Resistance Trading
- Strategy 8: Red-to-Green Trading
- Strategy 9: Opening Range Breakouts
- Other Trading Strategies
- Develop Your Own Strategy
- Trading Based on the Time of Day
- Chapter 8: Step by Step to a Successful Trade
- Building a Watchlist
- Trading Plan (Entry, Exit, and Stop Loss)
- Execution
- How Did I Do Them?
- Chapter 9: Case Study of a Newly Successful Trader
- Insight from a Newly Successful Trader
- Early Trading Education
- Beginning to Day Trade
- Hitting My Low Point
- Risk the Same Amount of Money Per Trade
- Risk a Small Amount of Money Per Trade Until You Are Consistent
- Use Hard Stops to Exit Trades
- Focus on a Single Strategy Until You Master It
- Listen to Experienced Traders
- Step-by-Step Examination of a Trade
- Conclusion
- Chapter 10: Next Steps for Beginner Traders
- The Seven Essentials for Day Trading
- Do Not Be a Gambler. Be a Trader.
- Plan Your Trading Business
- Journaling Your Trades
- Trading and Climbing
- Final Words
- Andrew’s 10 Rules of Day Trading
- Glossary