All you need to know about Candlestick Patterns.

All you need to know about Candlestick Patterns.

What are Candlestick Patterns in Forex?

Candlesticks are a type of charting system used by forex traders. They are based on historical price data, and help traders identify potential trading opportunities. Candlesticks are often used to analyze market movements.

How to read Candlestick Patterns?

Let’s begin by understanding that every candlestick pattern has four data points:

• Open: the opening price. 
• High: the highest price over a specific time period. 
• Low: the lowest price over a specific time period. 
• Close: the closing price.

Here's an example:

Note: For a bullish candle, the open is always below the close. And for a bearish candle, the open is always above the close

Now that you understand the basics of candlestick patterns.

What’s the purpose to know about candlestick patterns?

Well, candlestick patterns are useful as entry triggers to help you time your entry. Recall that market structure tells you what to do. Support and resistance (or the area of value) tells you where to trade. And candlestick patterns tell you when to enter.

Do candlestick patterns work in forex?

Candlesticks are an effective tool for analyzing market trends. They provide a lot of information about the current state of the market. They show the opening, closing, high and low prices of each bar. This gives traders an idea of what happened during the time period covered by the chart.

Are candlestick patterns useful?

Candlestick patterns are important indicators of price movement. They help us understand what is happening in the markets. We can see whether there is an uptrend or downtrend, and if we can identify when prices will turn around. These patterns can also be used to determine when a trend might reverse.

How do you Master in Candlestick Patterns trading?

You can master the candlesticks just getting knowledge of the reversal candles, chart patterns, and knowing the secret behavior in the market. if you understand the main thing that how the candlestick patterns are work then you should able to justify the market by predicting candles.

SUMMARY

• Candlestick patterns give you an idea of who’s currently in control of the markets.
• There are three types of candlestick patterns: reversal, indecision, and continuation. 
• If you want to know who’s currently in control of the markets, ask yourself, “Where did the price close relative to the range?” 
• If you want to know if there’s strength behind a move, ask yourself, “What’s the size of the candlestick pattern relative to the earlier ones?” 
• Candlestick patterns are useful as entry triggers to time your entries. 
• goog_192447226Don’t trade candlestick patterns in isolation. You must take into account the context of the markets (and aspects like market structure and area of value).