Strength of Candle Explained: From Most Bullish to Most Bearish (Complete Guide) | AMERIMONDE TRADING
If you can read a single candle, you can read the whole market. I learned this after losing 3 trades in one day on XAUUSD. I was looking at my chart and thinking - why some green candles go 100 pips, and some green reverse immediately?
I drew this chart in my notebook that same evening at AMERIMONDE TRADING. After 3 years on GOLD, EURUSD, GBPUSD, I understood: NOT ALL CANDLES ARE EQUAL. If you trade all candles same, you lose. If you trade only strongest candles at strongest levels, you win.
LEFT SIDE - MOST BULLISH - Buyers In Control - Green Arrow
1. Big Green Body - No Doubt Candle. This is strongest bullish I know. Open at bottom, close at top, no wick. Means buyers controlled 100% from first second to last. When I see this at support $2648, $2620 on GOLD, I know banks are buying. At AMERIMONDE we enter BUY after close, stop 10 pips below low. This alone can start 100-200 pip up.
2. Bullish Pin Bar - My Favorite. Small body on top, long wick bottom 3x body. Story: sellers pushed down 50 pips, everyone thought sell, then buyers came bigger and pushed back to high. Long wick is graveyard of sellers. I only take this at support. Entry after close, stop 5 pips below wick, target 2x risk. Works 70% on H4 and Daily for me. Never in middle of chart.
3. Medium Green Body - Continuation. Small wick, buyers still won. Means trend already up, small correction, now continue. If I see 2-3 medium greens in row in uptrend, I DO NOT close my buy. I hold. Beginners close early here.
4. Small Green Body - Weak Warning - I DON'T BUY. Small body = buyers tired. They pushed only 5 pips. When I see many small greens after 200 pip up, uptrend is dying. Smart money taking profit. Retail buying top. I never buy on small green. I wait for red reversal.
MIDDLE - NEUTRAL - Doji - Nobody Winning - Black Arrow
Doji has tiny body, long wicks top and bottom. Open = Close. Nobody won. Market in balance, confused. Why powerful? Balance always leads to explosion. After 4 hours fight with no winner, next candle will be big.
My 3 rules for Doji:
Rule A: Doji at TOP after big greens = buyers exhausted. SELL coming. Saved me on GOLD at $2675.
Rule B: Doji at BOTTOM after big reds = sellers exhausted. BUY coming.
Rule C: Doji in MIDDLE of choppy range = DO NOTHING. Hardest rule. 90% lose because they trade middle Doji. Wait for breakout of Doji high/low. When I see this, I close laptop and drink coffee. No trade is also trade.
RIGHT SIDE - MOST BEARISH - Sellers In Control - Red Arrow
5. Small Red Body - Early Warning. After uptrend, first sign sellers entering. Not strong yet. If I am in buy and see small reds, I take 50% profit.
6. Big Red Body - Strong Bearish. Open at top, close at bottom, no wicks. Full seller control. When at resistance $2675, $2680, $2700 on GOLD, I stay out of buys. This can drop 50 pips in 5 minutes during New York when news comes. We SELL after this at resistance.
7. Inverted Pin Bar - Top Reversal. Small body bottom, long wick top 3x body. Story: buyers tried hard push up, sellers smashed down. Long wick top is graveyard of buyers. Strong SELL at resistance. I use on GOLD M15 before CPI.
8. Biggest Red Body - MOST BEARISH - Panic. Open high, close low, no wicks. Pure panic. Never try to catch bottom and buy here. Let it fall. Wait for bullish pin bar at support. Buying against biggest red is how accounts blow.
How I Use This Drawing Daily - My Final Strategy
I mark Support and Resistance at 7 AM before London open. Support where price bounced 2 times before. Resistance where rejected 2 times before. Then I wait 2-6 hours. No chasing.
Price comes to my Support AND I see Big Green Body or Bullish Pin Bar = BUY, risk 1% only.
Price comes to Resistance AND I see Big Red Body or Inverted Pin Bar = SELL, risk 1% only.
I see Doji = no trade.
Print this image. Save to phone. Tape to wall. Before every trade ask: Which candle from this drawing am I seeing? Most Bullish? Most Bearish? Neutral? If you can't answer, DON'T TRADE.
This is not 20 patterns. It's understanding WHO is winning: buyers or sellers. One drawing teaches you that.
Follow AMERIMONDE TRADING - My personal journal, not financial advice. Trading risky.
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