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Candlestick Patterns in Forex Trading
The European debt crisis, a falloff in US manufacturing, and a slowing of economic growth in China have strong impacts upon Forex strategy and Forex news. Markets are volatile and trading can be uncertain. How can a Forex trader profit in such markets? A useful approach is to use candlestick patterns in Forex trading. Japanese candlesticks have been used by technical traders for centuries. In today’s markets traders use candlestick patterns in Forex trading to assess market sentiment and profitably anticipate price movement in currency pairs. When fundamentals are uncertain technical trading with Japanese candlesticks can provide a clear path to profits.
Japanese Candlesticks
Japanese candlesticks originated with rice traders in ancient Japan. They noticed that certain price patterns reliably preceded price movements, up or down. Some patterns implied an upward movement and some implied a downward movement. Some patterns told the trader that the market was likely to reverse, down from up or up from down. Candlesticks are used today in trading stocks, commodities, and Forex. A candlestick is a representation of a period of equity trading, usually a day. The candlestick itself is a rectangle whose height is determined by the opening and closing prices of the equity. The candlestick has two wicks, called shadows, which indicate trading that extended beyond the opening and closing prices. A candlestick is black if it closed lower than it opened and white if it closed higher than it opened. A candlestick signal may comprise a pattern of one or more candlesticks. Traders earn profits by learning how to use candlestick patterns in Forex trading. Using candlesticks can lead to a successful trading system in currency trading.
The Doji
Consider a rising or falling Forex market that seems to pause. Here is a situation in which candlestick patterns in Forex trading can lead to profits. The Doji is a single candlestick signal. This is a very short candlestick because it represents a day in which the opening and closing prices are virtually identical. The shadows extend above and below the candle, which tell us that trading went high and low for the day but that in the end the Forex pair settled back in where it started the day. It tells us that there is indecision in the market. When the market for a given currency pair is flat the Doji does not tell us much. When the market has been going steadily up or steadily down Doji candlestick patterns in Forex trading indicate a market reversal. It is generally good Forex advice to pay attention to signals like the Doji and earn profits thereby.
Profits with Candlestick Patterns in Forex Trading
Speculators trade currencies in order to make money. Profits are commonly best in volatile markets. However, risk is also high in volatile markets.
2. The European debt crisis, a
falloff in US manufacturing,
and a slowing of economic
growth in China have strong
impacts upon Forex strategy
and Forex news.
www.TheForexNittyGritty.com
3. Markets are volatile and
trading can be uncertain. How
can a Forex trader profit in
such markets?
www.TheForexNittyGritty.com
4. A useful approach is to use
candlestick patterns in Forex
trading.
www.TheForexNittyGritty.com
6. In today’s markets traders use
candlestick patterns in Forex trading
to assess market sentiment and
profitably anticipate price
movement in currency pairs.
When fundamentals are uncertain
technical trading with Japanese
candlesticks can provide a clear path
to profits.
www.TheForexNittyGritty.com
8. Japanese candlesticks originated
with rice traders in ancient Japan.
They noticed that certain price
patterns reliably preceded price
movements, up or down. Some
patterns implied an upward
movement and some implied a
downward movement.
www.TheForexNittyGritty.com
9. Some patterns told the trader that
the market was likely to reverse,
down from up or up from down.
Candlesticks are used today in
trading stocks, commodities, and
Forex. A candlestick is a
representation of a period of
equity trading, usually a day.
www.TheForexNittyGritty.com
10. The candlestick itself is a
rectangle whose height is
determined by the opening and
closing prices of the equity. The
candlestick has two wicks, called
shadows, which indicate trading
that extended beyond the
opening and closing prices.
www.TheForexNittyGritty.com
11. A candlestick is black if it closed
lower than it opened and white if
it closed higher than it opened.
A candlestick signal may
comprise a pattern of one or
more candlesticks.
www.TheForexNittyGritty.com
12. Traders earn profits by learning
how to use candlestick patterns
in Forex trading.
Using candlesticks can lead to a
successful trading system in
currency trading.
www.TheForexNittyGritty.com
13. Consider a rising or falling Forex
market that seems to pause.
Here is a situation in which
candlestick patterns in Forex
trading can lead to profits.
www.TheForexNittyGritty.com
14. The Doji is a single candlestick
signal.
This is a very short candlestick
because it represents a day in
which the opening and closing
prices are virtually identical.
www.TheForexNittyGritty.com
15. The shadows extend above
and below the candle, which
tell us that trading went high
and low for the day but that in
the end the Forex pair settled
back in where it started the
day.
www.TheForexNittyGritty.com
16. It tells us that there is
indecision in the market.
When the market for a given
currency pair is flat the Doji
does not tell us much.
www.TheForexNittyGritty.com
17. When the market has been going
steadily up or steadily down Doji
candlestick patterns in Forex
trading indicate a market
reversal.
It is generally good Forex advice
to pay attention to signals like the
Doji and earn profits thereby.
www.TheForexNittyGritty.com
19. Speculators trade currencies in
order to make money.
Profits are commonly best in
volatile markets.
However, risk is also high in
volatile markets.
www.TheForexNittyGritty.com
20. Traders use candlestick patterns
in Forex trading in order to
understand and profit from
changes in market sentiment.
By paying attention to the
fundamentals that drive
currencies traders have a good
idea of where prices will end up.
www.TheForexNittyGritty.com
21. Using Candlestick patterns in
Forex trading allows traders to
time their trades and gain
Forex volatility profits from
anticipation of changes in
market sentiment.
www.TheForexNittyGritty.com
22. For more insights and useful
information regarding the
Forex markets and foreign
currency trading, visit
www.TheForexNittyGritty.com
