This snapshot provides examples and levels and ideas for the future in the attempt to trade the daily Japanese Candlesticks on Gold. The close of a daily candle can provide an entry which is marked with an arrow above or bellow the day where a position has been taken at the closing price of the previous candle.
The dots represent the trailing stop loss which is positioned usually above the highs (for shorts) and below the lows (for buys) of big candlesticks which provide considerably higher highs (for buys) or lower lows (for shorts). Blue dot represents a hit on a stop loss with profits cashed in. Yellow dot represents a hit on a stop loss with a loss.
We use the levels and the rectangles or other shapes to guide our position taking, taking into account the nature of the candlestick that provides the signal, its shadow in case it is touching a level or a shape, and with a little bit of luck, the arrows from the future might guide us too, in our decision making process.
My favorite trading positions are usually taken on the Daily or 4H Naked Charts. This time I decided to draw some levels and markings to make it look more interesting and to provide examples of how some market price action and phenomenons might be expected if not predicted in advance. The math behind the flows and movements of the markets are usually intimately related to the past, to the highs, lows, gains and losses, which from a technical point of view are relevant regardless of the fundamentals that dictate the general direction and tendencies of the price.