Big up big down candlesticks
Sometimes there are big (long) candlesticks that form downwards and other form upwards.
The big up and down candlesticks are in most cases caused by
sudden events that happen in the market.
It may be as a result of news or some other factors.
These big up and big down candlesticks also form within
very short time intervals and they are very risky
if they form when you are trading in the opposite direction and
you have no stop loss. Also, in some cases,
the big up and big down candlesticks are followed by a retracement
of the market prices back to the same price level
as before the big candlesticks form.
Therefore, it is also important to always use a take profit when trading.
The trader should never place a trade during the formation of the
big up and the big down candlesticks without any prior analysis.
Middle of the day middle of the range candlesticks
When using daily ranges to trade, the trader should be able to determine
the candlesticks that form at the beginning of the daily range and those
that form at the middle of the range as well as those that form in the end of the range.
For the day’s range, sometimes the candlesticks that form in the middle of the day
may be just at the middle of the day’s range and these are the middle of the day middle of the range candlesticks.
It is advisable to not place any trade when the middle of the range is reached.
Rather, the trader should close all open trades.
Barb wire candlesticks
A barb wire candlestick pattern is a pattern of candlesticks
that form in a way that resembles a barbed wire.
The barb wire candlesticks form in a way
that they form small continuous waves over a given duration of time.
The market prices rise over two to three candlesticks and then drop over two,
three or four candlesticks and this pattern continue for some time
Mainly, the barb wire candlestick pattern is
very unpredictable and the traders should avoid trading
when this candlestick pattern occurs.
The main reason behind this is that there is no given range of the swings,
which make trading very unpredictable
and any trade placed at this time may lead to losses.
Variations of high low 2 setups candlesticks
Many times traders analyze and determine the highest and lowest market prices that the market reaches.
In most cases, the trader will use the previously formed candlesticks to determine the high and low market price levels.
There are variations of high low 2 setups candlesticks patterns that are used by different traders
in determining the highs and lows. An example of a high low 2 candlestick setup is the one where the trader
identifies a mother bar and use it to market the high and low levels using the highest market price it has reached
and the lowest market price reached respectively. The other candlesticks are formed inside the low and high range
that is identified using the mother candlestick.
Tight trading ranges candlesticks
The tight trading ranges candlesticks are the short candlesticks that form when the market is dormant market.
At this time the market is usually dormant with no major price movements and you can’t define any trend at the time.
The tight trading ranges candlesticks are best suited for the forex scalpers since they are sure
the market movements are not that large and hence the losses that can be incurred are limited.
However the trader should be very careful to analyze the market and determine when there is the tight trading ranges candlesticks to avoid losses.