Most of the time people think that the Candlestick Trading strategy can take profit. In that case I said that you can. If you want to make money from the forex market then firstly would be to know you what is Candlestick and what is their activity.
What is a Bullish Market?
In a bullish market, people are wanting to invest their money. There are high confidence and more acceptance of risk. This means that there’s a rise in the markets. With Forex, you’re trading two assets simultaneously, one in exchange for the other, so you can take advantage of the bullish market and the opposite, the bearish market. By paying attention to the market, you can determine the trends and act accordingly. In a bullish market, a trader wants to enter the trade when the price is on the rise so that when it’s reached a peak they can then sell.
What is a Bearish Market?
Bearish markets are the opposite and follow downward trends so investors start to sell their more risky currencies. Traders look to join the market when the prices fall so that they can then buy once it peaks.
What is bullish reversal pattern?
A bullish reversal pattern is a signal for change in the trend of prices. Bullish reversal patterns means that the currency can change into a downward trend in the future from an upward trend.
What does bearish reversal mean?
A bearish reversal pattern is the opposite of a bullish reversal pattern in that it means that the currency can change from an upward trend to a downward trend in the future.
Is a Doji bullish or bearish?
Doji candles can be bullish or bearish is one of the best Candlestick Trading strategies. They simply mean that the currency pair has opened and then closed at the same level in the chart’s timeframe.
Doji signal:
A Doji candlestick is a signal that there is market indecision, which means that there could be a change in the direction of the market. These Doji candlesticks are a chart that’s widely used as they are easy to identify in comparison with other candlesticks. Their wicks provide good guidance as to where stops can be placed by traders.
What does a long-legged doji mean?
A long-legged doji candlestick consists of a candlestick with long upper and long lower shadows that has the same opening as the closing price. It means that there is indecision on what the future direction of the currency is going to be. Some traders see it as a warning after a strong advance. They also signal the beginning of a consolidation period where then subsequently might be a breakout with a new trend.
What is Dragonfly Doji?
This is a Candlestick Trading pattern that signals a potential price reversal to the upside or downside, depending on what’s happened previously. It happens when the asset’s open, high and close prices are all the same. The lower long shadow implies that there was an aggressive selling pattern in the period but since then the price has been pushed back up.
What is Morning Doji Star?
This is a bullish reversal pattern. The difference between this and the Morning Star pattern is that there’s a Doji candle. The pattern is as follows: the first candle is in a downtrend with a black body, the second candle is a doji candle with the doji candle below the body of the previous candle and the high price is above the previous candle’s low price. Next, there’s the third candle with a white body which is above the previous candle’s body. The closing price is above the midpoint of the first candle’s body.
What is bullish engulfing?
This Candlestick Trading pattern occurs when there’s a large white candlestick that fully engulfs a smaller black one from the previous period. This happens most often in a downtrend and signals the start of a bullish trend. This is one of the best uptrend trading system that can you follow.
What is Three Outside Up pattern?
This is a three-candle reversal pattern. It has these characteristics: there’s a downtrend in the market. The first of the candles is black, the second white with a long body fully containing the first candle, the third candle is white and has a higher close than the second.
What is Three Outside Down candlestick pattern?
The outside down is similar but the market is in an uptrend. The first of the candles are white, the second black with a long body containing the first candle and the third is black with its close lower than the second. These are reliable indicators of reversals.