In this chapter, I will tell you. how to read the candlestick forex chart, and how to use the patterns that appear on it.
Here is a part of the graph of the EURUSD currency pair for the H4 time interval. Most beginners believe that since the patterns work, it is difficult to determine them on the chart, and in general they do not appear often. And they will have to spend a lot of time to find at least one pattern or a candlestick pattern. In this chapter, I will show you how things really are. This can already be attributed to the advanced candlestick analysis section. The figure above sets out my candle trading strategy.
So, just for a moment looking around this piece of the chart, I found 13 pronounced candlestick patterns. Of course, there are many more of them, but I spent only a minute on it. If you analyze the schedule of 10 minutes, these models can be found there up to 50.
I will describe each of the candlestick forex models: which I found in turn on the chart. To make the graph more visual, I divided it into 2 parts.
- Volume candle model (All conditions are met and the pattern worked);
- Volume Candle Model (Now in an upward market, but there is no difference for this pattern);
- Shooting Star Model (The main candlestick of the model is white, the next black – the sell position has worked);
- Model Bullish absorption (In this case, there is also an Inverted hammer before the absorption. Double signal that triggered);
- Hairpin model (Hairpin is directed upward, mining has come after some time);
- Model Tombstone (can be interpreted as a shooting star, the essence of this does not change);
- Bullish Absorption Model (A very strong absorption, which immediately continued to increase);
- Bearish Absorption Model (Development followed by the next candle);
- Volume candle model (Classics of the genre, and again 100% working out with the next candle);
- Model Tombstone (can also be interpreted as a falling star very quickly exhaust tone.);
- Bullish Takeover Model (A very strong takeover, which is expected to be quickly worked out by market growth);
- Volume candle model (In this case, we had to wait for mining, but the result met expectations);
- Model Abandoned baby (A rare model, but we and she found a place. The result is 100% justified).
As you can see, there are not so many models on any chart, they are just a huge number. The most important thing is to be able to interpret them correctly.
In conclusion, I want to say that at the moment there are only officially documented more than 150 candlestick patterns, and how many more are copyright ones. If you have your own model – use it, it has a place to be. Most importantly, always interpret models according to the rules and do not make any exceptions. Any exclusion or assumption will inevitably lead to collapse. In general, candlestick indicators give a rather high percentage of signal confidence. For this reason, stock traders in the US generally put candlestick chart analysis at the forefront of their operations on the exchange.
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