How to Read Forex Candlesticks

Candlesticks are known for their shape that resembles a candlestick. This media is commonly used to analyze the movement of stocks, forex, to commodities. However, it is not uncommon for traders to get entangled with complex patterns when trying to read them. In fact, there are two ways to read candlesticks that are simpler and more accurate.

Reading candlesticks is not just memorizing and getting to know the formations. Many books reference hundreds of candlestick patterns, with each pattern having the information and description to know what will happen next in the forex market. In fact, memorizing hundreds of candlestick patterns does not make a significant difference to a trader's trading performance. Actually, traders don't need to memorize all patterns for candlestick analysis, traders only need to know the big picture how to read candlesticks, because each candle is basically able to inform price structure, trend strength, buyer versus seller dynamics, and the projected direction the price will move later.

How to Read Candlesticks

If the candlestick is green, it means that the price has increased and closed higher or has a large enough buying interest. However, if the candlestick is red, it means that the price has decreased and closed lower or the selling pressure is large.

The most important thing to understand is that candlesticks convey messages related to the market structure, the strength of a trend, the battle of buyers and sellers and the possibility of the next price movement. Price movement is a battle between buyer/buyer/bull traders vs seller/sell/bears traders.


Note:

For further information, you can call 03315106055.
FREE Trading soft copy material! Text 081258066174 on WhatsApp.
More information about paid premium class (guided forever until get consistent profit and independent), kindly visit our website at www.wijayatrading.com 

Comments

Post a Comment

Popular posts from this blog

Tingkatan Seorang Trader

Image
Sebelum menjadi trader sukses, perlu dipahami bahwa ada berbagai macam tingkatan trader forex yang harus dilalui. Tingkatan-tingkatan tersebut biasanya dibedakan dari beberapa kriteria. Jika dilihat dari pengalaman, pengetahuan, cara berfikir, dan sikap mentalnya, seorang trader dapat dikategorikan dalam 5 tingkatan. Trader Pemula Seorang trader pemula pada umumnya masih merasa asing terhadap pasar forex. Trading forex dianggap sesuatu yang baru dan mungkin agak unik atau mengasyikkan. Mereka cenderung ingin mengetahui segala hal yang berhubungan dengan trading dan pasar forex dengan cepat dan instan. Baik analisa fundamental maupun analisa teknikal dipelajarinya dengan cepat. Trader pemula selalu mencari dan mempelajari cara-cara yang gampang, sederhana, dan segera dapat digunakan untuk trading. Pada umumnya, mereka mengharap profit besar dari trading forex. Trader Profesional Dari sebutan "profesional" yang disandangnya, memang profesi utama trader di tingkatan ini adalah t
Read more

SNR, BEST TRADE STRATEGY!

Image
SNR (Support and Resistance) is fairly popular in the world of forex trading. This is one of the most frequently used techniques in technical analysis. Without it, traders will experience difficulties and even lose in carrying out trading activities. The support point is the point which is believed to be the lowest point of an asset in a certain period. While the resistance point is the point that is believed to be the highest point of an asset in a certain period. In simple terms, support and resistance are likened to the two most discussed attributes in analysis where support is a level that has the potential to withstand price declines. Meanwhile, resistance is a level area that has the potential to hold back price increases. These levels are used to determine whether the price will continue or reverse. Basically, SNR aims to find out the right area when taking a buy or sell position and determine the target price movement. The support area is generally an area used as a reference f
Read more