Posts Tagged ‘candlestick’

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Dfference Between Hammer and inverted Hammer

A hammer candlestick appears at the end of a downtrend. It indicates a potential reversal to the upside. It consists of a small body with a lower wick twice the size of the actual body. The longer the lower wick, the more reliable the reversal is. The pattern becomes complete when the following candlestick closes above the close of the hammer candlestick. You can take a long position using this pattern. Your stop-loss can be placed before the low of the hammer […]

How to Trade the Bearish Engulfing Japanese Candlestick Pattern

The bearish engulfing pattern is a reversal pattern, which signals a potential reversal to come. This pattern consists of a bullish candlestick and is followed by a bearish candlestick, which completely eclipses or engulfs the body of the first candlestick. It indicates that the sellers have overtaken the buyers. For this pattern to form, you need an existing uptrend. This pattern becomes more reliable when the bearish candlestick opens above the close of the bullish candlestick and closes […]

Candlestick Pattern Series: The Hammer

The hammer is a single candlestick pattern and implies a bullish reversal. It is found at the bottom of a downtrend. Normally, price reverses to the upside after the formation of this pattern. However, this pattern fails sometimes, and this is what this video is about. The hammer candlestick consists of a small real body and a long lower wick. The buying pressure causes the candlestick to close near the upper range. And the price reverses to the upside. However, consider […]

Understanding Candlesticks in Forex Trading | Candlesticks Explained

Learning about candlesticks is an important part in technical analysis. Candlesticks provide a clear visual representation of price action compared to other types of charts. Each candlestick shows the open price, the close price, the high price, and the low price for a particular time period. You can view candlesticks in various timeframes such as the 5-min, 1-hour, daily, etc. Each candlestick consists of a real body with upper and lower wick. When the candlestick […]

Heikin-Ashi (The Secret to Identifying Forex Trends)

In this video, you will learn about the heikin-ashi candlesticks, and increase your profits by identifying the trend strength. It means an average bar in the Japanese language. You can use this indicator in technical analysis to predict future price movements. You can use these candlesticks in various timeframes such as the 5-min, 1-hour, etc. It gives more definitive trend signals. The candlesticks are red in color in a downtrend and green color […]

Hammer and Shooting Star

A pinbar is candlestick with a small body and a long upper or lower wick. The four types of pinbar candlesticks are hammer, shooting star, inverted hammer, and hanging man. The hammer is a bullish reversal pattern. It consists of single candlestick with a small real body and a long lower wick. You can spot the hammer at the end of a downtrend. You also have the inverted hammer candlestick, with a small real body, and a long […]

Forex Trading — Candlestick — Explained

Candlesticks are popular among forex traders and is available on your MetaTrader platform. They are preferred over the other types of charts. They give a clear picture of what the market is doing at a particular moment in terms of sentiment. A candlestick consists of a real body with upper and lower wicks. A candlestick shows you the open price, the close price, the high price, and the low price. The upper wick represents the highest price for that […]

Forex Trading — Candlestick Charts

In this video, you will look at the basics of candlestick charts. The Japanese used candlesticks for analysis in rice trading in the 17th century. In 1960, it was commercially introduced to the world by Steve Nison. It is similar to bar chart, but with much more visual representation of sentiments. You can use them in conjunction with other technical indicators. Candlestick charts show open, high, low, and close price. A green candlestick […]

Reversal Patterns in Forex Trading

A reversal pattern indicates a change in trend in the market. You can expect a bearish reversal in an uptrend. You can expect a bullish reversal in a downtrend. You can use candlestick patterns to identify these reversals. Another way to find a reversal is to look for the break of a trendline. For example, when the price breaks above the bearish trendline, you can enter a long position with your stop-loss below the recent lows. In this case, the broken […]

How to Identify Shooting Star Candlestick Pattern

In this video, you will learn how to identify the shooting star candlestick pattern, and use it as a reversal signal in your trading. Shooting star is the bearish counterpart of the hammer candlestick. This candlestick consists of a long upper wick, which must be at least two times the length of the real body. This pattern becomes more reliable with a long upper wick. The body of the candlestick can be bullish or bearish. A bearish […]

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