Drawing trend lines

Drawing trend lines is an art form that can take awhile to master. That's because everyone has their own unique way of drawing them! There is no perfect way to draw them and it seems that no one can agree on the best way! The purpose of drawing trend lines is to identify where possible reversals will take place. They can also signal that a change in trend may occur. In a uptrend, draw the line along the lowest points in...

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Foreign Exchange Market

Foreign Exchange Market         The Foreign Market is a large, growing and liquid financial market that operates 24 hours a day. It is not a market in the traditional sense because there is no central trading location or exchange. Most of the trading is conducted by telephone or through electronic trading networks. The primary market for currencies is the Interbank Market where banks,insurance companies, large corporations and other large financial institutions manage the...

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Three Candlestick Patterns

Three Candlestick Patterns Three candlestick patterns are some of the most respected patterns in all of technical analysis. When patterns made up of three important candlesticks appear (a rare event compared to single-candlestick patterns) you should be ready to play an upcoming trend, breakout, or reversal in the current currency prices. We’ll kick off this section with one of the best three candlestick patterns to trade. Morning...

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Double Candlestick Patterns

Double Candlestick Patterns In making use of candlestick charts, traders should familiarize themselves with double candlestick patterns for better analysis. Here are a few you should know: Engulfing Candlesticks The bullish and bearish engulfing candlesticks are made up of two opposite moving candlesticks. In a bullish engulfing pattern, the first candlestick is a smaller bearish candlestick followed by a much larger...

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Single Candlestick Analysis

Single Candlestick Analysis Single candlesticks are the easiest candlesticks to analyze because we have to look for only one candlestick in a chart. Below, we’ll name the several different types of single candlestick indicators, and how you can analyze them for trading success. Be sure to bookmark this page (and the following candlestick analysis pages) for easy reference. Knowledge is power when it comes to analyzing...

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Making Use of Candlesticks in Forex Trading

Making Use of Candlesticks in Forex Trading In our primer on candlestick charts we showed you how to see long-term candlestick charts for what they are. However, to use candlestick analysis techniques in the currency markets, you need to know how to hone in on parts of a candlestick that are easily ignored. Candlestick Bodies The candlestick has two major dimensions. First, a candlestick is made up of a body, which can...

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Using Candlestick Analysis

Using Candlestick Analysis Candlestick pattern trading has been around for centuries. Candlesticks were first adopted by Japanese rice traders to find future movements in the price of rice futures. Today, candlesticks are still used. The candlestick chart is one of the best available to traders as it showcases more information than any other chart. In the 1990s, during the early days of online trading, candlesticks became popular again, with a man named Steve Nison publishing methods for candlestick...

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