Why is the Doji in diagram B not recommended for trading
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Cross trading 6 AUD/USD (Picture above was 56.56 mins in the webinar)
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Why is the Doji in diagram B not recommended for trading?
Some useful Candlesticks trading patterns
Candlestick graphs are short term trading tools which are being used for technical trading.
Unlike the past decade of blindly following the guts and investing according to the gut feelings, people are now using technical analysis to make their investment decisions.
Though these analysis tools are used for only short-term uses, they are actually helping the traders in many ways.
Using candlestick predictions, many people are investing and making profit from their investment in the market.
To get the most useful results, traders have to use candlesticks predictions after knowing all the things about them and considering the whole situation.
Most candlestick patterns depend of the trend of the market.
So the uptrend and downtrend have to be considered while making a decision.
Another thing which is important is to know how the candlestick graph works.
The upper shadow of the candlestick graph shows the highest price whereas at the top of the real body, you will see the opening price for a red candlestick and for a green candlestick that will be the closing price.
If the body of the candlestick is red that means the close is lower than the open.
The body is shown green when the open is below the close.
In red candlesticks the bottom is the closing price and in green candlesticks, the lowest price is the lower shadow.
The popular candlesticks signs are hammer, the hanging man, the gravestone Doji, the Doji star, dark cloud cover, harami, the morning star, the evening star, the shooting star, the island reversal etc.
These are commonly used by buyers to decide when to buy or sell the share.
All the patterns indicate something to the traders.
The hammer is the best sign to show “Buy” sign to the buyers while the hanging man sign, which is quite close to hammer sign is used as “Sell” sign for the traders.