The ironclad technique using "Price Action"!
Recently, the term “price action” has become more and more common.
The meaning of the word is
Price = value Action = movement
In other words, price action refers to price movements, and by analyzing the candlestick price movements,
you judge market conditions from the crowd psychology and trade accordingly.
In the world of Japan’s stock market, there has long been something called “Sakata Five Methods,”
which is similar in some aspects, but in the Western FX market price action is mainstream.
There are several shapes of candlesticks in this price action, but
the strongest among them is Engulfing Bar, perhaps!!
The term Engulfing Bar may be unfamiliar,
Engulfing Bar refers to a state where the low (or high) of the previous candle is clearly
surpassed by the close of the next candle.
In other words,
For a bearish case:
・The low of the previous bullish candle is updated and confirmed by the close of the next candle’s bearish candle.
For a bullish case:
・The high of the previous bearish candle is updated and confirmed by the close of the next candle’s bullish candle.
This is the candle pattern.
If the close price surpasses the high/low of the previous candle,
it means that the price movement of the previous candle was completely negated, which can be read from this candlestick.
That indicates a very strong reversal-type selling/buying pressure,
and is used as a reversal signal, appearing very often on charts.It often appears as a reversal signal on charts.
When this Engulfing Bar appears in the upper or lower band of the Mebius-UV indicator,Mebius-UVit becomes a rock-solid entry method.
◆Examples of entries in Binary Options (3 or 5 minute trades) and short-term FX trading
EURUSD 1-minute chart
・Engulfing bar appears in the upper range of the Mebius-UV indicator.
◆FX Swing Trading entry example
GBPJPY 4-hour chart
・Engulfing bar appears in the upper range of the Mebius-UV indicator.
・Enter after the bullish candle is confirmed and followed by a bearish candle
Price action includes other patterns similar to engulfing bars, such as the “two-bar reversal” and
the “outside bar,” and when they appear in the upper or lower limits of the Mebius-UV indicator, they become as solid a entry as the Engulfing Bar.
Mebius-UV Gogojan product page:
