As a trader I have found using Japanese candle stick pattern is one of the most effective ways to make money in Financial market. I believe most of us know the important patterns of candle stick pattern and how to trade on them. I personally like Pin bar to trade on. Yes, I do wait for the confirmation meaning the next bar formation as well.
I like doji as well but doji candle can be very deceptive as far as I am concerned. Let us talk about Japanese candle stick more here in this thread. Let us exchange our views on this.
I am looking forward to seeing your participation.
Studying Japanese candlesticks is very complex for me, is there no simple to go around it please? I dont really know how to use Japanese Candlesticks to determine Trading Opportunities
Thank you.
Ambrose,Ghana
Japanese candlestick patterns can be great to know. But if you can actually understand what is causing that candlestick pattern to form, how price is reacting to what traders in the market are doing, you can profit greatly.
HI
For me candlestick chartng is very intresting .it shows more visual representation…
we should learn patterns & Psychology behind it…then it would be fun to knw the war between bulls & bears
In forex trading, we use indicators and rabbits feet, EAs and blind faith to inform our trading strategy. Me, I’m arriving a little late to the chart party.
Line chart, bar chart and candlestick chart are those patterns mostly used in trading, and right now I’m looking into the possibilities of Japanese candlestick patterns.
A candle actually tells us a lot of things about the sentiment of the market – which is not something I would have expected from this level of technical analysis.
Having said that, I need to know which direction (trend or sentiment) the market is going to take or has already taken, so being able to interpret which way the wax is melting is an aid to my trading strategy.
For example, if there is a long-legged pint obeying support, we can easily assume that market is going to on ‘buy’, since sellers have come out with their profit and this is the reason why there has been a long leg (now you know where the name ‘long john silver’ came from, originally. I made that last bit up…)
There are other candlestick formations, such as doji, bullish, bearish, morning star, evening star, spinning top, hammer etc.
lok at Forex4noobs website… no complicated candles + S/R we can dtermini when to jump in and out. Urbanforex is another site for those who likes 1 hour time frame. These 2 depends on price action and no indicators. Give a shot.
I trade price action not using many indicators, understanding the psychology behind market movements, is vital in determining direction and strength of a move. Candle stick patterns are an illustration of this psychology i.e. a candle with a full body illustrates a strong move so likely to carry on, where as a candle with no real body illustrates indecision i see a pattern as a way of the market telling me what traders are thinking
Whatever, you can’t believe any trading pattern so blindly! Market moves based on market context! This is way, you may see positive market movements but negative fundamental data! That’s the value to market context here! So, you have to work with market context (overall picture of market).
For technical analysis, candle patterns are really useful, but only technical analysis is not enough here! For being a successful Forex traders, we traders have to active on fundamental as well as technical analysis! But, new traders can start from chart reading based on candle pattern info.
You are quite right on the note that market moves based on its context. However, candlestick pattern can be used to take entry. To some extent, it can be used to take an exit as well.