Category Analysis charts - Price Action - Part 1: Reading Japanese candlestick pattern - Singapore Forex Trading, Singapore Forex Academy, Singapore Forex Association

Header Ads

Category Analysis charts - Price Action - Part 1: Reading Japanese candlestick pattern

Hello Trader!
A phenomenon Candles "leapfrogging" - From expert called GAP, the application to identify a strong resistance level. See details here >>
Technical analysis is an indispensable tool in Forex Trading profession, of course it is not absolutely accurate but certainly much help in identifying trends, finding and exit points as well as a reasonable command early identification signs of reversal. Forex Chart Forum is about 2 parts: MODEL MODEL PRICE and CANDLES
Reading nen candelstick nhat ban

The most basic things before reading charts

Like learning to read words, we first need to identify each item of letters, then merge the text into words and sentences to understand the meaning of sentences. Read the chart price is the same price chart, it is necessary to know the most basic things such as Japanese candlesticks, ..

1. timeframe timeframe

Time frame - timeframe tren mt4
On the chart of MT4 trading software, there are many different timeframes from 1 minute to 1 month, on Chart 30 minutes, then every 30 minutes passed would end a candle. Me is to use candlestick charts see Candelstick then, charts cord or other type, then do not watch it. Currently most of the people were using Japanese candlestick patterns to analyze this or that clearance (described later)

2. Understand the structure of a candle

Avatars Nhat mo This is the shape of a Japanese candle, if at first you look at the price chart you must have not Understand u float some candles mean and how to read each of its constituents. Actually very simple, see the photo on the right =>
For the price candle UP Open the first opening price, closing price Close the candle end, the Body is the length of the candle. Similarly for candles decreased (red).
Low and High called shadow, a shadow on the remaining High Low is lower shadow. Regardless correct this shadow to determine the clearance rate (Support and Resistance is generated by the models candle)
Several farmer often look to the sky for weather forecast, while the Trader is looking at the tree, "candle god" or Model Price Price Action to predict future developments.

3. The special candle patterns to predict trends

The table below lists some special Japanese candlestick patterns, they more important than usual because the candle patterns based on the shape may know the momentum of Trader group BUY, SELL - dominant groups, groups are exhausted ...
Description form Candles
Photo realistic
Doji candle Candles are popular Japanese model, this is a sign that a rally prepared occur because buying / selling is gradually exhausted. Example: In an uptrend, at a temporary peak with a Doji, the ability to have peak, SELL opportunity came. The Trader often incorporate additional tools other indicators or price model Price Action, not just rely on each tree candles for trading decisions, so Doji is just one piece of the picture reversed.
Also, Doji also serves as validation tool followed previous candle. Tip: If Doji appears in the block level (eg clearance from Trendline, price channel Channel, fibonacci retracement, pivot points .... ), then acted as shadow makes "psychological" resistance increases terrible.
Gravestone doji is a special case of Doji candlesticks, if after a long and Trend models appearing Candles "meteor" In this situation, more than 90% will begin to reverse.
If you are keeping order Buy, this is the time to take profits lest diminishing returns.
A dragonfly candle candlestick Gravestone doji similar line, the market for prices to bottom. The Trader is often called the flying dragon candle. Picture right shows examples sales force ended and another began rising after Trend dragonfly candle appears. Common name of this candle is "leggy"
3rd spinning top names in their line Doji, but this tree has no stance as 2 Doji form above, it appears that the situation is inconclusive, according drunk candle need to confirm rather This plant alone not say anything, just showing the watch and keep track of the next candle to have a more accurate view.
A spinning top candlestick sonh born brothers with Spinning plant, only that there is "fat" rather, a small beam Spinning candles after gains reflected the majority are wary, waiting for the next move, can only be a resting phase of convalescence, then rose sharply or also indications Bull team was tired and was going to let bad. At this point things you can do is wait a candle Breaout rise or fall sharply to decide.
Hanging Man and shooting star candle signaling 2 discount, usually present at the summit, the main characteristic is the candlestick pattern is
Yes Body short and long shadows, at least twice as long as candlesticks.
Long shadows are slowly showing SELL team dominates, followed by tree Shooting is reducing the chances Selling candles arrived, Stop Loss above shadow.
Hammer and inverted hammer candlesticks have the same functionality candle "hanging" and Shooting above, often present in oil market prices and the reversal effect, see this pattern continue waiting candle candle following the completion Members, if the increase is buying candles and cut holes in the shadows, and that was it. The model is simple - easy to play and easy to win.
Part 1 ends here, you need to remember the model of special candles to combine with the pricing model as discussed in the following sections. 
 >>Technical analysis with Pivot Point 
 >>Technical analysis with cell lines Moving Average avarage - MA - SMA - EMA
 >>Guide to making money on YouTube
 >>NEW!the long awaited eToro trading update for 2015!