Understanding forex candlestick charts

More video on topic «Understanding forex candlestick charts»

When the market is in a downtrend, you will notice that price moves up to the moving average lines (upswing) and then bounces back down from them (downswing). (That is if you put moving average lines on your charts).

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How to Read Forex Charts: 11 Steps (with Pictures) - wikiHow

The best way is to confirm that the breakout actually happens with a candlestick before placing your order. What I do I is for example, say I’m watching a symmetrical triangle form in the 9hr charts and I know that soon a breakout will happen. I then switch to the 6hr chart to wait for the breakout to happen. If a 6hr candlestick has broken the triangle and closed below/above it, that’s my trade entry signal. So I will place a pending buy stop/sell stop order to catch the breakout from there.

Answer: You need price charts:   price bars, candlestick and line charts. These are  graphical and visual representation of price over time , thus telling you a story about supply and demand forces over a certain time period which can be 6 minute up to one month or year.

A double top chart pattern is a bearish reversal chart pattern and when found in an uptrend and once the neckline is broken, that confirms a downtrend.  The double tops are very powerful patterns and if you get into a trade at the right time, you stand to make a lot of profits when the breakout happens to the downside.

Candlestick patterns are far and away the most intuitive, accurate means of determining price strength in any direction.  Whether you trade stocks, options, forex or futures candlestick patterns should be the cornerstone of your toolbox for reading and determining any market forecast.

Nothing is more noticeable on any chart than support and resistance levels. These levels stand out and are so easy for everyone to see! Why?  Because they are so obvious.

See chart below for this: if you see a support major support level and  price is heading down to it and at the same time, that support level is coinciding with an upward trendline…

Amazingly here 8767 s a great link about candlestick patterns great content for learning the basics of the candlestick patterns. If you want to learn more advanced stuff download my manual!

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