In forex trading, we use indicators and rabbits feet, EAs and blind faith to inform our trading strategy. Me, I'm arriving a little late to the chart party.
Line chart, bar char and candlestick chart analysis and now I'm looking at Japanese candlestick pattern.
A candle actually tells us a lot of things about the sentiment of the market - which is not something I would have expected from this level of analysis. Having said that, I need to know which direction (trend, sentiment) the market is going to take or already has taken, so being able to interpret which way the was is burning is an aid my trading strategy.
For example, if there is a long-legged pin obeying support, we can easily assume that market is going to go on buy since sellers have come out with their profit and this is the reason why there has been a long leg.
There are other candlestick formations such as doji, bullish, bearish, morning star, evening star, spinning top, hammer, etc.
If you are unfamiliar with some of those terms that relate to Japanese candle stick pattern, you could have a look over here for a decent explanation:
http://www.forexrazor.com/en-us/school/tabid/426/ID/437186/candlestick-patterns
Line chart, bar char and candlestick chart analysis and now I'm looking at Japanese candlestick pattern.
A candle actually tells us a lot of things about the sentiment of the market - which is not something I would have expected from this level of analysis. Having said that, I need to know which direction (trend, sentiment) the market is going to take or already has taken, so being able to interpret which way the was is burning is an aid my trading strategy.
For example, if there is a long-legged pin obeying support, we can easily assume that market is going to go on buy since sellers have come out with their profit and this is the reason why there has been a long leg.
There are other candlestick formations such as doji, bullish, bearish, morning star, evening star, spinning top, hammer, etc.
If you are unfamiliar with some of those terms that relate to Japanese candle stick pattern, you could have a look over here for a decent explanation:
http://www.forexrazor.com/en-us/school/tabid/426/ID/437186/candlestick-patterns
