Forex TECHNICAL ANALYSIS PART 3
Candlesticks
Technical analysis and candlestick charts go together like salt and pepper in the Forex. Forex charts are almost always make use of candlesticks, because most forex information.
It is by far the most common method of plotting price today. The method was invented by Japanese rice traders in the seventeenth century, so so young, this method is not at all. Smile. The beauty of the candlestick is that it perfectly reflects what happens within a certain period with the price happened. Moreover, there are all sorts of candles - doji candle, long-legged doji candle, gravestone doji etc and patterns, harami, hammer, dark cloud cover, three black crows, three white soldiersetc-that much value in predicting future market sentiment. One thing is certain: If you want to be a successful trader you must learn to recognize these patterns .. Can you bring a lot ..... oh eh, blue / green be good, be bad red!
Red is a close lower than open (or a decreasing rate, "bearish movement", downtrend).
Green is a higher close than open (increasing rate, "bullish movement", uptrend). The small sticks above and / or under the body are called shadows and
Black is called a doji, a candle with only shadows, and not (red or green) body.
What would a doji display? Exactly, a little indecision in the market. There have been trade (just look at the shadows), but the closing price of the period is very near the opening. There is in fact very little happened.
A number of specific candlesticks
Three white soldiers Three green candles in a row. This means that a strong uptrend and is a good chance that this will continue. A good rule of thumb is that the longer a trend already present, the greater the chance that he will go on for a while. But of course this is not a law of the Medes and Persians.
Three black soldiers His three red candles. What is the white soldiers goes for the black soldiers, but in reverse.
The Hammer is a candle with a small trunk and a long shadow. This is a bullish reversal pattern ', which means that it is very likely that prices will soon rise. The reason is simple: first the prices were in decline, but somewhere in the period of this 'Hammer' prices have begun to move on the other hand, the low price apparently could not be maintained.
50 euro free markets
The Hanging Man is the same as the hammer, but reversed, or he follows a series of green candles, but could not hold the high prices.
The Inverted Hammer is a hammer on his head, following a series of red candles. The implication is that prices are struggling to rise and in the period of the "inverted hammer" they made a first attempt but failed. There is a good chance that prices will try again in the next period.
The Shooting Star. Same as the Inverted Hammer, but after several periods of rising prices. .
There is more information out of Forex candlestick charts, and there is also much more to say about candlestick patterns, but that would be beyond the goal of this course for beginners forex 'go. But if the candlestick patterns appeal to you, we recommend the book Candlestick Charting Explained, Greg Morris to read.
related posts
- Support Resistance Indicator
- Forex Trend Indicator
- Fibonacci Fan
- Ichimoku Indicator
- Macd And Stochastic
Forex is simple follow the trend and you will rich.
ConversionConversion EmoticonEmoticon