Thinking about candles as just patterns is counterproductive. It makes you a worse trader, it leads you to make massive mistakes. Giving a pattern a set definition leads to tunnel vision. When you see that specific pattern, you assume that something will happen.
All candlesticks need to be assessed based on the candlesticks around them, best forex strategy tester and many other factors. Below is a candlestick pattern commonly called a “spinning top”.
Normally people say that a spinning top means a reversal is imminent, which can be true. However, this same pattern can also mean that a continuation is imminent. Thinking of candles as simple patterns is the wrong way to do things.
You need to look beyond the pattern and read the story of price. Every single candle on best forex your strategy tester chart is telling you a story.
When you combine those candles together, you get the story of price. The foundation of my Forex trading strategy is reading and understanding the story of price.
Best forex strategy tester The.Reading and understanding the story of price is best forex strategy tester vital in Forex. It is vital because it allows you to answer one of the best forex strategy tester most important questions in trading… Who is in control of price? This question has three possible answers: buyers, sellers, or neither. Being able to accurately answer this question best forex strategy tester is vital. If you are about to enter a short trade and you ask yourself. ” and your answer is “buyers”, well best perhaps forex strategy tester selling is not a great idea. If best forex strategy tester you look at the three highlighted candles best forex strategy tester below, it is easy to conclude that sellers are in control of price. The candles all closed lower than they opened, they all created new lows beyond the previous candles low and they all had small upper wicks in comparison to the best forex candle strategy tester body. The small upper wicks indicate that buyers were unable to push price up best forex strategy tester by much. But what does the highlighted candle in the next chart tell us? It has a short upper wick, a best forex forex trading trend line strategy pdf strategy tester small body, and a long lower wick.
Before we begin it is necessary to have trades has nothing to do with the accuracy tool to perform the detailed market tester best forex strategy analysis in order to make their trading style even more efficient, systematic and productive. Want to trade without risking all of your.Best forex strategy tester The street with.
Take a look at this bullish best forex strategy tester trend (yellow highlight), it is a strong trend, there are several bullish candles heading towards an area of simple rsi ea mt4 resistance. The big bullish candles tell us that during the highlighted period buyers were in complete control of price. When price hits resistance we get an indecision candle forming (green highlight). Let’s break this candle down into a story best forex strategy tester so you understand why it indicates indecision. Large Upper Wick (Blue Highlight) A large upper wick shows that buyers tried to continue the bullish trend but failed. Small Bearish Body (Green Highlight) The small bearish body shows that sellers were able to tester forex best strategy close lower than the open. This is significant because in the three candles before this price consistently closed higher than open. Small Lower Wick (Red Highlight) The small lower wick shows us that sellers were not able to gain much ground either. This tells us that sellers are not strong enough to turn price around completely. However, they are strong enough to stall further buyer movement.
Best forex strategy tester Middle.All together this indecision candle forming right after strong bullish candles suggests that power has shifted from a decidedly bullish (buyer) market to an undecided market.
While sellers are not in control, neither are buyers. But there is one more thing we need to look strategy backtest metatrader at… … The indecision candle is forming on top of a resistance area. So the image above shows us three strong bullish candles heading into a resistance area. And then… Price stalls and we get indecision forming on top of that area. When price pushed into that area sell orders triggered and buyers could no longer continue up. And this story gives us a nice little price action trade setup. Price action allows you to take many different types of trades, reversals, continuations, range, swing, breakout and scalp trades to name a few. In my free Forex trading strategy I will focus on one type of setup, the easiest to spot and trade, reversal. Reversals occur quite often, but if you do not know what to look for, you cannot trade them.