Japanese Candlestick Forex Signals



http://www.forexconspiracyreport.com/japanese-candlestick-forex-signals/ Japanese Candlestick Forex Signals There are a dozen major Japanese candlestick Forex signals and forty signals in all. Japanese candlestick signals evolved from rice trading in ancient Japan. These technical trading signals are strong indicators or subsequent market action. Their strong advantage is their clarity. Japanese candlestick trading signals do not show up every day in currency trading. When they do they are useful in achieving profits in predicting changes in foreign currency rates. What follows is and quick overview of Japanese candlesticks and then a brief listing and over view of the dozen major Japanese candlestick Forex signals. Japanese Candlesticks Japanese candlestick Forex signals are pictorial representations of price action in the Forex market. The day's trading is represented by a vertical rectangle. This is the candle. It is white when the day ends higher than when it started and black otherwise. Its ends represent the opening and closing prices for the day. Lines extending from the top and bottom of the candle are called shadows and represent the full range of trading for the day. A trading signal can be one or more unique candlesticks. Here are the dozen major signals for helping predict changes in foreign currency exchange rates. Dark Cloud Cover This dark sounding name is for a two candle set that predicts a reversal of a recent up trending market. The first day trades up. The second day gaps higher on open and falls significantly to close slightly above the previous day's opening price. The Dojis Doji - virtually flat candle with upper and lower shadows Gravestone Doji -- virtually flat candle at the very bottom of the trading range Long Legged Doji - virtually flat candle with one or two very long shadows The principle information that one gains from the various Doji patterns is that the market is indecisive. In a flat market this is useless information. In a market that has been trending up or down it is often a strong indicator of a reversal. Engulfing Patterns Bullish Engulfing Pattern - short black candle on day one and much larger white candle on day two, "engulfing" the first candle Bearish Engulfing Pattern -- short white candle on day one and much larger black candle on day two, "engulfing" the first candle Each Japanese candlestick Forex signal indicates a market reversal in the direction of the second day candle. Piercing Pattern This pattern is a bottom reversal signal. It consists of two candles. The first is long and black. The second is white and starts lower that the first after a gap down to open on the second day. The white candle is as long as the black. Hammer This signal consists of a relatively short white candle with no upper shadow and a long lower shadow. At the bottom of a down trend it predicts an upward reversal. The Stars Morning Star - three candles, first black and long, second small and white below the first, third white, long and higher than the second Evening Star - three candles, first white and long, second black and small above the first, third black and long below the second Both of these are reversal signals that predict that the market will move in the direction set by the last candle. Shooting Star- a short candle with a very long upper shadow and no lower shadow This signal predicts a market reversal after an established trend. Trading Forex with candlesticks gives a trader a clear view of market sentiment in a set of very precise market conditions. Smart traders learn to confirm these signals before jumping in. http://youtu.be/F3eG53dZd2o

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