You are currently viewing Candle Confirmations

Candle Confirmations

 
When it comes down to being a pro trader you must be able to place yourself in the best possible scenario to win every trade. One way to do that is to wait for proper confirmations to take a position. I find/see many people taking trades with NO confirmations, DO NOT DO THIS PLEASE. As this may, here and there, give you a beautiful wick entry, do not do this, it will cost you more than it makes you, especially if you are a beginner.   When i look for candle confirmations, i will usually wait for 1-3 candles to close (in 15m Time Frame) which allows me have a better understanding of what will happen (a market edge).

My favorite 3 Candle Set Ups: 

Bearish/Bullish Engulfing 

Before UJ 15mThis is a Bullish Engulfing candle, what this means is that buying pressure has now taken over the previous selling pressure. When This happens, especially on a support zone like here, we can expect a really nice move to the upside. When i see a set up like this, on a support zone, I enter on the open of the next candle and as it pulls back (to create a wick). NOTE: When there is a 10+ pip bullish engulfing candle, be careful, this can lead to a poor RR ratio. I stay away from those. (unless it is on a red news day, because price moves a lot then)

AFTER 

 This move lead to an All green push of 80 pips in 2 hours, Arrow is where the bullish confirm candle was. I would enter on the next candle.

Bearish Engulfing

Before EJ 15m

This is the opposite from the bullish engulfing (duh), this is a bearish engulfing candle, which means that selling pressure has taken over the previous candles buying pressure.When This happens, especially on a resistance zone like here, we can expect a really nice move to the down side. When i see a set up like this, on a resistance zone, I enter on the open of the next candle. When trading these i place Stop Loss ABOVE the resistance zone and place take profit according (on bullish engulfing and any other candle confirms also).

After

As you can see this was a very clean and straight to the next zone. This was about 50 pips (yes standards) in 5 15m candles. :0

Bullish Pin Bar

Before EG 15m

This is a bullish bin bar, what this shows is that (when at a support) buyers have taken the control over the sellers WHILE in the same candle, which can more of a momentum switch than a simple rejection candle. And this bullish pin bar is a signal that we will more than likely come back up to the next minor resistance, as usual i will enter directly after this candle or wait for 1 more confirm to be more sure.

After

As you can see here, the bearish pin bar closed above the support zone and there for we managed to move all the way back up to a minor support (about 20 standards)

Bearish Pin Bar

Before GU 15m

This is a Bearish pin bar, what this shows (if at resistance) is that buyers were in control for most of the time but by the end of the candle, the sellers took over. What this signals is that we will most likely continue down. On this set up depending on the momentum, i will enter directly after this candle or let 1 more candle play out.

AfterAfter, we pushed down to the next support zone which would result in around a 30 pip gain. (notice how the bearish pin bar closed below the resistance zone)

Exhaustion Doji Candles 

Before UJ 15m

Exhaustion Dojis are also a very good thing to look for, as you can see, we are exhausting ABOVE a support zone so what does that mean? We look for a bullish candle(to engulf all of past candles price movement) as a confirmation to take buy. If the next candle goes red and engulfs all price, i will just wait.

After

And bam, So what we look for now is an entry. Entering after the Arrowed candle is ideal with a tp at the next zone (which would be about 12 pips).

Recap:
  • Make Sure Price is at a zone
  • Make sure you wait for candles to close
  • Make sure the close below/above your zones
  • ITS OK TO BE PICKY

IF YOU HAVE ANY QUESTIONS, COMMENT OR CONTACT ME! @ATEENTRADER ON ALL SOCIAL MEDIAS

MAKE SURE TO SHARE AND SUBSCRIBE IF YOU THINK THIS CAN HELP SOMEONE!!

 
 

This Post Has 21 Comments

  1. Demian

    Thank you so much I really mean it you are amazing
    Also I’m 16 learning to trade and I’ve been watching your zone to zone trading and I got it down
    Demo account I turned 3,000 into 4,000 in just one week

    1. ateentrader

      You are so welcome! Keep it up, go live when you can (legally and financially) and start killing it!

  2. Abdul Raheem

    v great but i have a question if i want to take entry in m15 then its must i draw zones in D1 timeframe??

  3. Ian Lam

    Hello, do I draw the s&r zones at 15 minute timeframes? How do I determine tp? sorry I am very new

      1. Lindo

        Nice little read. I fully understand your material. I personally enter on 1hr and 4 hr wick retests particularly on Gold and I understand your caution on this. However it seems to allow me a good risk to reward ratio because one successful 4hr candle is a hefty amount of pipage during peak time with small losses if my guess is wrong. This alone has allowed me to take 2 trades a day, one long wick candle going up and another going down, (Pump n Dump) with tight stops. No retest, No Trade.

        I’ll add your strategy to my arsenal, sinve I see you’re a smart guy. When you have the time, if you look at your strategy on the higher time frame I can bet entry is the point where the the wick stops and the candle begins whilst crossing its open to shoot in the opposite direction with the losers money

        For a “teentrader” you’re good, well done👋

        1. ATeenTrader

          I think that is a valid approach entering!

  4. Mo

    thanks man i wish you succes in your life and happiness am just starting and this was very helpfull

    1. ATeenTrader

      Thank you!

  5. ian

    it can use in h1 and h4 right?

    1. ATeenTrader

      Yes!

  6. Sam

    How did you learn to trade? Did you have a mentor or you just figured it out yourself?

    1. ATeenTrader

      I learned through various sources but vastly altered and refined things on my own. No real mentorship or anything of that nature

  7. kenneth

    i have always wanted to understand confirmation…….u have made this clear for me now….thanks

    1. ATeenTrader

      You are so welcome! I am glad it helped 😀

  8. Bleach Bleach

    Very informative and easy to understand/follow. Just started learning the trading business and I’m glad I found this site and your Youtube channel. God bless you more. Keep up the good work.

    1. ATeenTrader

      Thank you!

  9. Bleach

    Very informative and easy to understand/follow. Just started learning the trading business and I’m glad I found this site and your Youtube channel. God bless you more. Keep up the good work.

    1. ATeenTrader

      Thank you!

Leave a Reply