NAKED CHARTING

We notice that there’s a very

large candle, giving us a sign that
momentum to the downside has
come to the market

The next candle shows a

continuation of that
momentum
We see a little bit of weakness

Notice: Each candle prior to this

candle broke the candle’s low by
quite a lot, this one broke by a
very small amount
 Give a warning sign that
something may be
changing here

We then
see a
counter
trend
move
 We done
a bit
pullback
but not
too bad
compared
to the
trend

We just tiny
broke the low
with a little
wick => We
could move
down, reverse
or range
 The next
candle has
given us a
counter trend
move => At
this point,
momentum
cannot
continue to
the downside.
=> We’re likely
to reverse or
range

Market starts
pull back up,
isn’t giving us
any
continuation
to the
downside
Just broke the high but
with a clear wick that
shows weakness => At
this point, we wait
(We tried to break the
low – retrace, tried to
break the high – retrace)
=> likely to range cos no
commitment

In here, it breaks the high

but with the wick (giving
a sign of weakness).

it won’t surprise if it
retraces again after
breaking the high.
However, the
momentum to the upside
can continue
The market has continue
going up but without a
lot of momentum. (The
candle has broken the
high with a wick and not
broken by a lot).

The market retraces =>

still expecting to see a
range.
 The market breaks the
high with a wick again. =>
the market doesn’t show
anything for us to look
for buy

The market’s giving us

ascending nature

The market come down – We

expected it looking at
ascending nature. We start to
see a bit of momentum,
expecting it to go down –
However, we need to be
patient here because if we a
retracement here, we see that
it breaks the high – retraces &
breaks the low – retraces.
The candle shows a shift in
momentum => We expect the
market to continue going up

We break the high with a little

wick but we still see the
momentum up
EXACTLY what we got!

We start to see a bit of a

pullback but not worrying – not
showing a momentum down,
not a shift in momentum
 The candle starts to give a bit
of momentum, but at this point
not so much in comparison to
the move that we had up =>
wait & see

Market continue moving up

with momentum.
 We see a bit of a range, break
the low and got rejected – not
showing us that we want to go
down – actually showing we
want to go up (we’re
descending at this point)

We broke the low and retrace

again. => Each time it tried to g
down, it cant do that, showing
us that it wanna go up.
The market starts moving up,
giving a wick, and then broke
the high => We need to see
what happens next (Are we
going to reject or are we going
to see momentum.

We saw the market come up,

break the high but leaving us a
wick. -> not giving us a massive
amount of confident. (We want
to see the market break the
high, and give momentum)
The momentum has moved in.

The candle isn’t really a shift in

momentum but gives a
warning sign => We need to
see the next candle to decide
 We broke the high again, not
by a lot, with a wick showing a
bit of weakness.

We continue moving up
The candle shows a shift in
momentum – taking out almost 2
previous candles, larger than most
of candles before it -> telling us
probably we could reverse.

We see a bit of a range and then

BANG!
The next candle doesn’t show that
it’ll continue massively

We start to see some wicks =>

we could range or reverse
4 continuous wicks. HOWEVER, we need to ask
ourselves: Have we seen a shift in momentum?
– Sometime, we sell ourselves stories. We could
tell ourselves: It can’t go down anymore.

The market continues to go

down, and then we got another
large wick => Showing that we’re
struggling -> We need to wait &
see
 The market continues to go
down. We see no shift

Momentum has kicked in

 A retracement

A shift in momentum to the

upside => either gonna give us
a larger range or reverse
 We see a range

We broke the original low and

sort of rejected with a wick
We got rejected but not yet
seen a shift in momentum.

We broke the low again with

wicks on both sides
We see descending nature ->
more likely to go up

BINGO, a shift in momentum,

like we’ve expected.
The market has continued
moving up with momentum.

Not a shift of momentum but

not breaking the high by a lot
-> a bit of warning sign
 Broke the high again but was
rejected, giving warning sign

Ascending -> The momentum

up has slown down. => Sitting
on our hands
Broke the low and rejected =>
not showing that it wanna go
down, possibly wanna go up.
However, not really giving an
idea where it wants to go.

Broke the high again slightly

 Move up with a bit of
momentum but then,
momentum slows down (we
see a wick)

We see an ascending nature

=> We could easily move
down.

Doesn’t mean it cant move up.

We know that with this pair
(AUDUSD), it trends quite
correctively. However, we
need to see momentum up
 We see a move down – not
really a shift in momentum yet
(with a wick).
Overal, we see it breaks a high
– retrace, break a low –
retrace => We expect a range.

We break the high again and

get rejected => clear sign that
there’s no momentum up or
down.
 Momentum has started to kick
in. (though doesn’t mean it
has to continue. From what
we see before, it could easily
reject again after breaking the
low).

We have gone down. It hasn’t

really broken by a lot but with
a solid candle close so not
surprised if it continue.
 Market continues moving
down.

It has continued with the

trend but with a sign of
weakness (large wick)
Aggressive retracement.
 We either gonna range
or reverse.

We got a range as expected.

 We break the high – retrace,
break the high-retrace again
=> We see an ascending
nature.
We know that normally, the
market will move down.

The candle shows us a shift of

momentum to the downside
A retracement again.

A candle with a wick -> either

range or reverse
 We’re likely to go up.

We see momentum up.

Should to this everyday on every pair to understand each & every pair’s characteristics