Is the candle stick pattern the best forex trading strategy? Candlesticks patterns were first used in Japan six centuries ago in the Dojima rice exchange.
Today, it has become a popular tool for foreign exchange traders to predict currency trends. The system provides data on past and present trading patterns that are used in forecasting the movement of various currencies.
Foreign exchange trading is a lucrative business for people that are very good at analyzing currency trends. Due to the emergence of several forex systems and software that are easy to access these days, many people are more opportune to involve themselves in forex market with or without experience. Candle stick pattern is an essential instrument which traders are using to strike big in the forex market.
If you want to use candlestick to trade, you are supposed to be conversant with the best way it works; that is you need a proper analysis of this tool. It could be one of the best forex trading strategies if applied the right way. You can find a lot of candlestick pattern but the ability to choose the best type requires deep thinking. As for the sets of people that use candlestick pattern before now, 30-minutes candlestick chart turns out to be more profitable and you should adhere to it before you place trades. There is need for you to make sure the pattern is dispatched accurately because you could lose if you are not able to get the right reading.
This is known as candlestick technique engulfing. It is believed to be consistent unlike other analysis, and most all it is very profitable. The word engulfing is known as a market condition where the present candle stick absorbs the preceding candlestick chart. The engulfing patterns comprises of the bullish and bearish engulfing rule. You can use the two patterns to know the direction a particular trend is about to head to, once you have finished analyzing it. The bullish pattern develops at the time the value of a particular currency is at its lowest position whereas that of the bearish pattern is seen at the time the value of a currency stands at its highest point.
How can you apply the candlestick pattern the right way to enhance your chances of winning trades? With the engulfing pattern, you would be able to know when the currency pairs are on it's up or down position. This will give you an idea of the perfect time to place your trade. The most perfect moment is the time it, strongly, indicants the trend is moving out of its path. It is not a must that the trend must have moved completely out its pattern, but you must see a proof that the candlestick chart is certainly moving to its end position. In other words, you must have seen the candlestick develop to a small extent.
How do you know when to begin trading with the candlestick pattern? As soon as you observe a high candle being taken over by a low candle directly preceding it, it implies that we have an upward trend and a short term trade should be placed, this also implies to the downward trend. You need to do a good timing and a proper analysis in order to see you succeed with the candlestick pattern; it is the two factors that influence the candle stick to get better results.
Every Forex Trader Need Pateience.
BalasHapusMost successful trading strategies allows traders to buy to go long during an uptrend in quality demand zones, and to sell to go short during a downtrend in quality supply zones. However, a “problem” that many new traders (and experienced traders!) seem to have is the need to be “first” when price hits their chosen level. While occasionally price hits a level and IMMEDIATELY turns and goes your chosen direction, more often than not the prices hang out in a level for a bit before turning. Many traders will execute quick trade entries, yet this pause in action will shake their confidence in the trade causing many to take themselves out early, or even move their stop loss too early for the trade. When the trader is then out of the trade, very often the chart will then move directly to their target, yet they have no position on! Has this happened to anyone else besides me?
One thing to be aware of, especially when trading from larger time frames like daily or four hour charts, is the fact that THERE IS NO TROPHY FOR BEING FIRST TO ENTER THAT TRADE! I prefer to wait around for a couple of candles to make sure that the zone is holding before entering my trades. But how long should you wait?
My preferred technique is to look back on the chart at the last 3-5 times that my currency pair has turned to see how much time I should give before committing to a trade entry.
I am a forex trader who has moved from lows to highs and I am aspiring for higher highs in my career. I owe my broker a million of thanks for their excellent services that enhance the performance of my strategy.If you want the highest ranking broker that offers fast execution and timely processing of withdrawal requests, I would recommend FxGlory.
I read from the post that:
BalasHapus"Today, it has become a popular tool for foreign exchange traders to predict currency trends."
I can say that is why it works.Any ideology that is popular will surely work in the forex market.The foundation of market dynamics is demand and supply.So, the trend is usually in the direction of the net market pressure. Demand implies buyers while supply means sellers. Any time the trend is down, then we know that there more sellers than buyers in the market and vice versa.Candlesticks work because many traders are using it.
Thanks for the post.
Bosun
FxGlory remains my best broker since 2014.
Forex trading is not rocket science. There is no expectation that you be a mathematical genius, or an economics professor to acquire wealth in currency trading. Instead, clarity of vision, and well-defined, carefully observed goals and practices offer the surest path to a respectable career in forex. To achieve this, you must resist the temptation to overexplain, overanalyze, and most importantly, to rationalize your failures. A failure is a failure regardless of the conditions that led to it.
BalasHapusBosun
Excellent customer service,fast trade execution, no slippage and timely processing of withdrawal are the qualities that keep me with
FxGlory since 2014.They are the best.
I have been checking out a few of your stories and i can state pretty good stuff. I will definitely bookmark your bloghow to read candlestick charts
BalasHapus