http://ForexTradingRoom.tv - The home to Free Live Trading Sessions http://ForexProAnalytics.com http://SmartForexTraders.com Japanese Candlestick charting techniques and patterns. ForexTradingRoom.TV Candlestick formation and other indicators. Contrary to what many outsiders believe successful trading on the forex market place is not based on luck or intuition. Forex traders analyze patterns and the fluctuations of currency values to make informed decisions on how to trade. Price charts are simple line graphs that illustrate the trends of spikes and dips in the line formation. By studying line formations traders can map out signals that allows them to track emerging trends as they develop. These charts reflect the changing value of exchange rate between two currencies over a period of time. Chart patterns. Japanese candlestick formation is the most popular chart analysis system. This unit of measurement resembles candlesticks in that there is a body wick and tail. These are also sometimes referred to as the upper shadow and lower shadow. The candle represents the high-low open and closing price points over a specific period of time. The candlesticks illustrate price action represented as either an upward or downward trend. This indicator further develops the data provided by the line graph by adding price action to the price chart. There are two types of candlestick patterns. Reversal candlestick patterns indicate a change in the recently established trend. Continuation candlestick patterns indicate a continuation of an already established trend in the market. When the open and closing price are the same this pattern is referred to as a doji. This is a representation of a temporarily neutral state. Doji are significant because they represent a moment of uncertainty that will eventually get resolved with a newly established trend. Other popular indicators include the Fibonacci retracement and triangle chart patterns. All these techniques are an example of traditional indicators that use the principles of mathematical probability formulas to predict the direction of the next trend. All indicators of this kind use a triangle to map out the parameters of potential trends. Forex indicators take this concept and analyze these line formations with computer software to determine patterns. With that data reverie indicator functions as a signal for traders on specific trends that are in develop. The tools of forex data analysis have progressed in the past few years. Now there are powerful tools that compile indicate a knowledge for hundreds of sources to provide a global chart for forex market trends. The most powerful analysis software indicator on the market is Forex Pro Analytics. Visit our tutorial section on Forex Pro Analytics here. And more about how the forex market operates visit the education section on our website. ForexTradingRoom.Tv. The number one channel for forex market analysis. Thank you for watching the Japanese Candlestick video. https://youtu.be/6Vvn2gFLW7s http://ForexTradingRoom.tv - The home to Free Live Trading Sessions http://ForexProAnalytics.com http://SmartForexTraders.com
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