CFD West TX Oil Candlestick
Harami price action trading CFD West TX Oil candlestick When you see this harami candlestick pattern this indicate the momentum preceding it has stopped.
On the first day you can see a wide range candle that closes near the bottom of the range.
The sell position traders are still in control of this CFD pair.
Then next day, there is only a narrow range candle that closes up for the day.
almost traders confuse this pattern with the engulfing pattern.
keep in mind the candles are opposite 1st and 2nd day.
Price action trading and price history
In simple terms, price action trading is a trading technique that allows traders to read the market and make trading
decisions based on the actual price movement on the chart, rather than relying on lagging indicators.
Most indicators are derived from the actual prices on the chart, so they are in fact, giving traders the information on past price movements.
Why would traders want to base your trades on past information, when the most important factor in trading is what prices are doing right now, and what they are most likely to do in the very near future?
By using certain strategies, it can help traders to learn what prices are most likely going to do in the near term, rather than trying to guess using lagging and misleading indicators.
A more technical explanation is that Price Action is the movement of a security’s price.
This action is encompassed in technical and chart pattern analysis, which attempts to find order in the sometimes seemingly random movement of price.
Swings (high and low), tests of resistance and consolidation are some examples of price action.
The candlestick and price bar are important tools for analyzing price action, since they help traders visualize of price movement.
Price action trading is also very technical and deals with reading price history.
Most traders think they know everything there is to know about support and resistance already, but the truth is reading price history isn’t as easy as most people think.
There’s a lot more that goes into understanding a chart than just drawing some basic support and resistance lines.
And trading, this way, goes that extra step to explain not just what is happening but explain how and why it happens so traders can make good decisions in the future.
This enables the trader to read price history and make better analytical decisions in present and future trades.