Have you ever wondered how you can use candles to trade in the forex markets? Japanese candles are a really useful technical analysis tool that is commonly used for stock markets and product futures.
Professional traders have used candles to trade in the Forex market but their application to the Forex chart may be somewhat different. For example, since the currency market is a 24-hour market, there will be less gap between candles (excluding weekly holidays) and so you will have to change your outlook.
1. What is a Japanese candle?
There are 2 types of candles. The bearish one is usually red or colored, but the bullish one is green or transparent. A bearish candle is one that has closed below its open price, while a bullish candle has closed above its opening price. There will usually be shades as well, otherwise known as “wicks”, which appear above and below the body of the candle. This is the price range that the currency pair has traded within the period.
2. My experience with making forex candlesticks easy
Inside this e-book I have learned all the big chart patterns that can predict price holdings and continuity very reliably. Some of these patterns include the shooting star, Marubuju, the patterns involved that can predict price movements reliably.
Of course, you need to be more creative when looking for wrapped patterns, because this pattern is hard to find when the next candle always opens at the same price as the previous candle closure.
3. Are Japanese Candles Really Effective for Forex Trading?
Most definitely! With the help of this trading tool I can now more easily analyze the market situation and predict the future market trend with a higher degree.