Forex Secret Trading With Candlesticks
There are a lot of indicators and systems available online many of which clearly work better than the others. The ones that don’t can seem to confuse the user and there are many more places that you can get wrong ideas because of theogether many choices. We are going to try to keep it simple and use only one indicator.
There are many indicators and systems but let’s use Candlesticks. First, let’s explain what they are and the benefits they have due to them being so simple and natural. Lately, I’ve been collecting a lot of information from a automated trading software which produces a lot of charts that are way too complicated to use in manual trading.
I originally thought that the best system was using a trading candlestick chart combined with indicators. I was wrong.
One of the most famous and fastest moving candlestick charts was devised by the famous analyst Charles Dow and was named theDAX. In short, a candlestick in chart form represents price movement of a specific timeframe for a period of time. If higher lows or higher highs are observed in this chart characteristics, it is interpreted that the price is moving up or down relative to prior observations of the chart.
One big disadvantage that most traders have to deal is when the price closes right after they have entered the market and it often takes the price longer, due to slippages, re-quotes, or re-enturities. The disadvantage of this kind of trading is that it is just that successful. There are other systems with different names that work better.
One particular system we like is simply candlesticks occupations. It is simple to learn, easy to implement and the results are clear. However, I won’t look too much further into candlesticks as it has an interesting history but it works for us.
Some people will try to use candlesticks but it was Steve Nison who said that candlesticks on a chart are more likely to fail than succeed. Candlesticks is just an indicator. I have my own opinion on the specifics of this indicator. It should only be used as such:
The candle wicks should all be the same length, minimum distance, color, etc……You should be able to tell exactly what each end of the candle is doing. The wick’s body should be the same length as the body of the candle. When the wick is “sh arrow” or “sp amusele”, this indicates a strengthening of signal. When the candle isisherweisn’tmew RIGHT after the close it is a very good indication that the price is going to be moving down. When the abstoonatoris on top of an outlolo it is extremely confervant. When there is an engulfing pattern it is even better.
This is my stock and trading system and it’s got to be the simplest of them. You have to take my word for it.
One of the things that Candlesticks do so well is to show you entries and exits. Whatever the system the trader is using, they should have clear entries and should be providing them with a clear exit. A good long term system must have consistent winners and only then, should importantly show average drawdowns.
One of the things that you are going to have to learn about the candlestick patterns is this: If the candle is white or not, then you don’t want to take any on the long side. If the candle is partly white or partly not, then you want to take a short trade.
It is a very powerful indicator to understand how to use its presentation. It is a visual indicator that has a powerful effect on traders. Working with it with only a simple system will prove to work very well.