candlestick reversal strategy
Hello Sir Long
Im using much strategy and i lose always money. some people say
“REVERSAL STRATEGY” is good for profit. can you show how trad with reversal please ?
thank you very much
FOREX candlestick trading pattern
Candlesticks are the most important elements of a trading chart that a forex trader should understand.
However, for the trader to use the candlesticks, the trader has to choose the candlestick chart.
In actual fact, the information that is relayed by the candlesticks contains everything that the trader needs to understand about the dynamics of the forex market.
Structure of the candlestick
A candlestick represents the price movement of a given currency pair depending on the timeframe that the trader has chosen to use, i.e.
if the trader chooses to use the one hour timeframe, each candlestick will represent the price action of the market within one hour.
Every candlestick has an opening price, a closing price, a high and a low.
The opening price is the price at which the candlestick starts to form while the closing price is the price at which the candlestick closes.
The high is the highest market price that is attained during the formation of the candlestick while the low is the lowest market price that is reached during the formation of the candlestick.
Mainly, there are two types of candlesticks; the bearish and the bullish candlesticks.
For the bearish candlestick the opening price is higher than the closing price while for the bullish candlesticks, the opening price is lower than the closing price.
The trader should try to set the color of the two candlestick to be of different colors so that it is easy to identify them.
Basics of the FOREX trade candlestick pattern
If the trader understands the candlesticks well, he or she will be in a position to identify trading patterns.
The candlestick pattern is used to mainly identify market trends, trend reversals, and trend continuations.
Candlestick pattern refers to a group of candlesticks that signal the onset of a trend, potential trend reversal and even trend continuation.
It assists the traders to identify when to place and exit orders.
Centrally to majorities view, the candlestick patterns gives current market psychology and assists traders in making immediate decisions.