Understanding candlestick patterns goes far beyond just remembering and recognizing certain formations. Many books have been written about candlestick patterns, featuring hundreds of different formations that supposedly provide secret information about what is going to happen next.High Profit Candlestick Patterns: Advanced Candlestick Patterns
Truth be told, it will make no difference to your trading performance whether you know what the Concealing Baby Swallow, Three Black Crows or Unique Three River Bottom are. In our Forex pro course , you will learn everything about price action trading as well.
Every candlestick is a single battle in an overall war and the 5 elements of the candlestick tell us who is ahead, who is pulling back, who is in control and who has a better chance of winning the next battle. A candlestick always must be analyzed in the context of what has happened in the past.
So, whenever we try to analyze a candlestick or a formation, we need to ask ourselves those questions:. This is a good starting point because it helps us avoid the closed mindset thinking which limits many traders. Now we can start exploring the 4 elements:.
You can see that once we start combining the information that wicks and bodies provide, we can practically analyze all candlestick formations. Now that we have covered the individual elements, we can put things together and see how we can use our knowledge to dissect price charts. In the final example, we can see a classic pattern at the end of a trend. This is also often one of the building blocks to the trading strategy which you can learn in our pro area.
With this article we want to show you that you do not have to remember any candlestick formation to understand price.
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Trading Blog Technical Analysis Market Analysis Indicators Price Action Psychology Beginners Risk Management Statistics Tips Premium Courses Member Login My Courses Member Forum Become A Member. Candlesticks — Forget Candlestick Patterns — This is All You Need To Know Contents in this article The 4 elements of a candlestick Step 1: The candlestick war Step 2: The size of the body Element 2: The length of wicks Element 3: The ratio between wicks and bodies Element 4: The position of the body Chart examples Example 1 Example 2 Example 3 Conclusion: Forex Trading Academy Forex price action course Private forum Weekly setups Apply Here.
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Candlestick Patterns | Top 10 Best Patterns For Traders
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Profitable Candlestick Trading with Japanese Candlesticks
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