| One of the basics of foreign exchange trading and | | | | However, this pattern can also trigger confusion |
| making money from currency trading is learning how | | | | among traders and often represents indecision in the |
| to analyze price patterns and trends and making | | | | currency market. This candlestick pattern is formed |
| them a basis for your trading decisions. Of course, | | | | when the opening and closing price virtually equal. The |
| you cannot just rely on your instincts when you are | | | | said pattern is represented in the candlestick chart as |
| about to put your hard earned money at stake. One | | | | a cross or a plus sign. It can also be shown as an |
| of the popular charts used in foreign exchange | | | | inverted cross. |
| trading is the forex candlestick chart and learning | | | | Hammer - the hammer is another candlestick pattern |
| how to read forex candlestick patterns should be a | | | | which is named as such because the candle has a |
| basic thing you have to learn if you want to make | | | | long wick and short body that looks like a hammer. |
| money in the currency market. | | | | This pattern is formed after a decline and a sign of |
| Of course, you have to find basis on whether to | | | | possible reversal in the currency market. |
| trade or not and find the right timing to be able to | | | | Engulfing - engulfing is a pattern that can be seen |
| make the most profit out of your venture, which is | | | | between two candlesticks. As the term suggests, |
| of course, your very aim in getting into this business. | | | | one candlestick 'engulfs' the other as the body of the |
| Candlestick charts are visual representation of the | | | | candle in the previous day is contained in the body of |
| market prices in the currency market and the chart | | | | the candle in day 2. In this pattern, the second day |
| resembles that of a candle, thus the name. If you | | | | opens lower than the other day's closing price and |
| want to make good trading decisions, here are a few | | | | closes higher than the opening price of the previous |
| forex candlestick patterns that you may want to | | | | day as well. |
| familiarize with so you will also be guided on when to | | | | These are just two of the candlestick patterns that |
| trade and when not to. | | | | you have to master and understand in foreign |
| Firstly, to be able to have a general picture of the | | | | exchange trading. Other patterns that will help you |
| currency market movement, you have to understand | | | | make wise trading decisions include the harami, |
| what is a bull market and a bear market. Patterns in | | | | piercing, the shooting star and the kickers. There are |
| the candlestick chart can be often read as bullish or | | | | still other patterns that you have to consider though. |
| bearish. Bullish when the market trend is downward | | | | Keep in mind also that the forex candles tick |
| moving and bearish when it is up. | | | | patterns are not the only thing you have to consider |
| For some specific forex candlestick patterns that you | | | | in your trading decisions. A combination of technical |
| might encounter, here are some of them. | | | | analysis tools will be a wise decision to make your |
| Doji - this candlestick pattern is a very popular one. | | | | trading a success. |