Skip to main content

Price Action Candlesticks


The history of the Forex candlestick takes us back to Japan, pretty interesting, right? Candlestick charts go back as long as 500 years from now. Used by Japenese traders to analyze the price on the rice market. Off course techniques have developed and evolved and the candlestick was used by lots of other traders around the world. Now you know how and where the important candlestick was born.

Price Action Candlesticks

The western approval of the Japanese candlestick Forex charts was just 25 years ago. Step by step it gained popularity in the trading community of the USA. It wasn’t as well known before because people thought it was hard and complex to master the Japanese candlestick technique. 

Candlesticks are the purest form of Price Action that gives us a visible view of what’s happening in the market. Signals at a candle chart are exactly the same as on a bar graph. However, candle charts tend to be more trustworthy and are more visual.
Candlestick pattern is a repetitive returning formation of the price that suggests future prices. They will canalize your thinking process of the market as well.
Patterns in this lesson show us how traders acted earlier and what was there believes at that moment at that specific time frame?
Normally candlestick traders talk in the “Candle slang”. Candlesticks from the basics of your thinking process and trading decisions. 


Identify Candlestick Patterns 

It’s important to point out that attempts to identify candlestick patterns without trend, Support and Resistance are completely useless. There are more than 50 candlestick patterns for Bullish and Bearish.
Some traders remember all the names. This is not necessary since every candle is telling a different and unique story that will give you new information to think about.
By observing charts it’s important to ask yourself questions that can be used to back up your recent opinion.
For example: Once the recent candle has a solid form, what does this mean for you? Does it conform or go against your previous thoughts of the candlesticks?
Looking for good Forex education? Look at www.theforexscalpers.com

Comments

Post a comment

Popular posts from this blog

Forex Price Action Strategy – The Forex Scalpers

Technical chart analysis is the multiple patterns the chart shows and all forms of price action. Also the overall analysis and the movement of the market over a certain time period. A soon you’ve learned to master the price action and how to determine the price action. You are ready to make a benefit of certain movements in the market. Price Action is making the most of your trading decisions on a clean chart. Free of indicators and influences from the past. You could add the moving average for some extra help. Since Price Action reflects al variables of a certain market over a certain period with the help of price indicators as Stochastic or MACD. You won’t need all the other indicators since they simply just distract you. Only information you need to make a winning strategy is the raw movement of the market. Fundamentals of Price Action Strategy As told before, economic variables will move the market as well. Think of what I told you about fundamentals.
Movements like this are clearly re…

Importance of Price Action Trading in Forex

Forex Trading in price action is a method of financial market speculation which relies on analyzing the movement of basic prices over time. Anything which influences the market and makes it move, from news and economic data to major players such as hedge funds and banks, is expressed on a price chart by the raw price action. There’s a lot of ways traders can take advantage of market-price action. Various types of technical analysis such as Supply and Demand, indicators, support, fib retracement, etc. It can be used as a way to define changing price behavior. It helps FX traders in periods of heightened uncertainty to search for trading opportunities. A Market trader using price action strategies should aim to analyze the market in order to make informed trading decisions about current and probable price changes. The trader examines the relative size, shape, volume of the bars on a high-low open-close chart of bars or candlesticks chart, beginning as easy as with a single bar, but mor…