Candlestick Chart Patterns

1
Anticipating Reversals With Candlestick Chart
Patterns
2
There are perhaps hundreds of books written on
candlestick chart patterns featuring several
hundred of the different candlestick chart
patterns. Although there are these many, do not
get pinned down by the sheer number of
candlestick chart patterns a trader has to learn.
3
There are only a few basic candlestick chart
patterns to get started off with and this
write-up will showcase one area of candlestick
chart patterns and that is anticipating
reversals.? These candlestick chart patterns
will cover most reversal scenarios and a trader
has just to get really good with them.
Get Comfortable With Candlestick Chart Patterns
4
Recognizing Candlestick Chart Patterns with Ease
5
The most common and powerful candlesticks chart
patterns to indicate reversals are
6
Dojis are formed when price opens and closes at
the same level in a candlestick, indicating price
indecision. They are most significantly seen
after extended periods of rally with long bodied
candles. A trader should only placed importance
on doji occurring on long rallies with big moves
and not on dojis found in range bounds.
Doji
7
Spinning tops indicate that buyers and sellers
have clear sense of what the market direction
will be from the small bodied candlesticks
formed. The forces of supply and demand are
equally balanced and they will normally show up
at the end of a long run.
Spinning Tops
8
It is a clear sign that the current trend is
running out of steam. It is also a good idea to
use it in conjunction with other indicators for
confirmation of trend reversal.
9
An evening star forms when the signs of first
candle showing a long bodied candlestick followed
by a candlestick with short body with a long wick
and lastly a long bodied candlestick in the
opposite direction which covers much of the first
candle length. The reversal signal will even be
stronger if the second and third candle has a
huge price gap. The formation of the morning
star is the exact opposite of the evening star.
Evening and Morning Stars
10
These two formations are very common and very
powerful combinations. It occurs when price his a
support/resistance level, retreats and attempt to
break the level once again. The price fails and
thus indicates a huge signal that the trend is
reversing.
Triple and Double Tops
11
These five simple candlestick formations should
be sufficient to cover most reversal scenarios.
The main idea is to not get overwhelm by the
patterns and just sticking to trading them only.
It provides the trader an idea of a potential
trend reversal and to prepare for it with a
combination of signals from indicators as
confirmation to trade the chart pattern.
Candlestick Chart Patterns Conclusion
12
What if you just couldnt trade Forex
effectively with a day time job? I know how hard
it can be to trade Forex manually, but if you
want to really be successfully trading your own
unique manual system, you need to learn a single
method that works amazingly well.
13
Dont give up hope, its NOT impossible. Forex
Geometry System will expand your trading
capabilities to greater trading success! Learn
more by visiting the link on this page.
For more Information, please visit
http//www.ForexGeometry.com
14
(No Transcript)