Forex Candlestick Patterns – Part 1
Forex Candlestick Patterns
Forex candlestick patterns provides inputs emotions of market participants. It let us understand whether market sentiment is bullish or bearish. We can also see candlestick at specific turning points especially when you are trying to decipher complex price movement in fractals or waves.
FOREX CANDLESTICK PATTERNS IN DETAIL
Understanding Basic Forex Candlestick Patterns (Part 1)
- Candlestick is a leading indicator that shows moods, emotions and actions of market.
- Candlestick provides strongest indication when found near S/R
Gauge strength of price movement with length of candlestick
Length of candlestick can tell you how strong each participant is. A candlestick with long body has strong bulls/bears involvement. A candlestick with short body suggests that market is consolidating and waiting for some conclusive price movement subsequently.
- Long white candlesticks indicate that the Bulls controlled the ball (trading) for most of the game
- Long black candlesticks indicate that Bears controlled the ball (trading) for most of the game
- Small candlesticks indicate that neither team could move the ball and prices finished about where they started
- A long lower tail indicates that Bears controlled the ball for early part of the game, but lost control in the end and Bulls made a strong comeback.
- A long upper tail indicates that Bulls controlled the ball for early part of the game, but lost control in the end and Bears made a strong comeback.
- A long lower and upper tail indicates that both the Bears and the Bulls had their moments during the game, but neither could win, resulting in a standoff.
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