3 simple and very effective candlestick patterns

3 simple and very effective candlestick patterns
Now we know all about Japanese candlesticks, but we still have to learn to negotiate and take advantage of them. At the time of the current graphics plan is the best technique to analyze the Forex market, because not only do we get to see a good graphical illustration of the currency pair, but candlesticks are an important tool to speculate at the moment of future price and this is possible via different types of candlestick patterns.

What is the significance of the candlestick patterns?

A single chandelier offers market information according to the selected time period and this information helps us analyze the current market scenario of a currency pair, but when a series of candles is used to analyze the currency pair, a the merchant is able to view a larger image of the current situation of the market, as a result, it becomes easier to speculate that the future price movement and make a decision to trade.

Repeated and combined use of several chandeliers to analyze the market according to every other scenario is known as "Lance-analysis" and also "candlestick Trading strategy".

Today we are going to learn all the top 3 Basic, simple but very effective candlestick patterns and more advanced candlestick patterns can be learned in subsequent lessons.

Candlestick patterns simple and fundamentally important first 3

1. Marubozu

Marubozu are the actual bodies without hands and legs, that is to say, these are the candlesticks with almost 100% real body without shadows. A chandelier of Marubozu is a very solid candle, and is formed when the market shows a strong movement in any direction i.e. the opening price of the candle is the lowest price/higher and the highest closing price/price as according to the direction of trend.

Marubozu sailing pattern
A bullish Marubozu is a chandelier white or green with a real time body without shadows. The opening price is the lowest price, and the closing rate is the highest price of the candle. A bullish Marubozu reflects a high demand in the market resulting in purchase intense pressure, even in a continuous price increase. A bullish Marubozu is often seen at the beginning and/or continuity of a bullish trend and also in times of immediate bullish reversals.

A bass is a red Marubozu black or candelabra with a real time body without shadows. The opening price is the highest price, and the closing rate is the lowest price of the candle. A bassist Marubozu reflects a great offer on the market in times of decline in demand resulting in intense pressure sales, even at the price of continual decline. A bassist Marubozu is often seen at the beginning and/or continuation of a declining trend and also in times of immediate bearish reversals.

2. spinning tops

Yes, you guessed it right; These are the sails similar to the spinning tops with what we used to play many years ago that these are the candles that keeps turning the lid and the bottom of the price swings that is to say, these are the candlesticks that are a small real body with upper Chaduw and omb AR lower.

Candlestick spinning tops
A spinning top is formed after the great battle between the bulls and bears with anyone with the top and finally resulting in a tie, that is to say the small real body with the top and the shadow in the background reflects the information of price action that was very acti u and volatile during the day, two bulls and bears had a great battle for the hand, but despite all their efforts resulted in a draw by closing near the opening price and leaving the action of higher prices and lower significant negotiated in the form of shadows. The color of the spinning Tops is not important because each spinning top has a very small body with the closing rate very close to the opening price.

Two or more small real body candlesticks with the same high or low on a certain price level are called clips. When clips are formed in the peaks or Troughs of fluctuations in prices, reflects a high probability that the current trend loses its momentum and can result in a lateral direction and/or back in the opposite direction.

If a top is made in the level of demand, then the possibility of the future price movement bouncing from the demand level goes up because a top level support means that the bears lose their strength if they are unable to get the PRI JS reject any skin there are results in a great chance that the price could recover IE, start to appreciate the level of demand.

If a top is made in the level of supply, then the possibility of the future price movement bouncing off of the UPS supply level, because a spinning top to a level of resistance means that the bulls lose strength if they are incapable of the price more than just results in a great chance that the price could recover IE, start to fall from the level of delivery.
Example of a candlestick spinning tops

In the quoted GBPUSD H1, graph, you will see that when a spinning top and/or clamps are formed in the levels of support and resistance, the likelihood of price bouncing Robotic i.e. levels of supply and demand rises too high.

3. Doji

Doji candlesticks are extremely skinny size Zero, that is to say, they don't have a real body and/or the size of your real body is so thin that almost seems like a straight line. A Doji candlestick will form a more intense fight that a higher yarn between bulls and bears. In a spinning top, there is at least a small real body, but here in real body Doji is smaller than the spiders from above or size almost completely zero.

Doji are of 4 types and their real size zero body; They look like a straight line horizontally, in addition, cross and/or as a sign of an inverted cross. 4 different types of Dojis are the following

4 different types of patterns of Doji candlestick

A Doji candlestick is the result of an intense battle between the bulls and bears with anyone with the top and finally resulting in a tie, that is to say zero real body with the top and the shadow of the Fund reflects the information of price action That was very active and volatile during the day, two bulls and bears had an intense battle for the hand, but despite all his efforts as a result a tie also closing the opening price and leaving the action of higher prices and lower negotiated significant form of enc avalcaments.

Doji plays a very important role while analyzing the Forex market, as it is a large candelabra that gives us a warning sign to stay alert at the time of the price action that is traded on a peak or through extreme levels of rates.

Doji Forex Trading strategy after a bullish candlestick
If a Doji is formed after the long fall candles in a level of demand, then the probability that the future price movement bouncing from the demand level goes up because a Doji on a level of support means that the bears have sold out and has lost His f orça as it is not a price to fall more resulting in a great chance that the price could get over that is to say, starting with appreciative call level.

Doji Forex Trading strategy after a bearish candlestick
If it is a Doji candles long bullish in terms of supply, then the possibility of the future price movement bouncing from the supply level is raised because a Doji on a level of resistance means that the bulls are sold out and have lost the your strength if you are N OT able to appreciate more the price that results in a great chance that the price could recover IE, start to fall from the level of delivery

Example of a candlestick Doji

In the quoted GBPUSD H1, graph, you'll see a Doji and also has twice re-tested on a level of resistance and after that the price began to fall very nice from the level of resistance without any difficulty, but after three great chandeliers bearish , a spinning top was formed in the previous level of support, but if there was still left with the bears that transferred a little more on the level of demand for energy and finally after they formed a Doji on the level of demand, the price showed love and not only the ADV price car, but even broke the resistance level, more price re-has been tested by a pair of tweezers and continued the upward trend.

Notice
Non-commercial any Lance, if you see it in the chart. Candlestick all the patterns should be used for trading in the context, that is to say, any Lance, for example, if a Doji is formed in the middle of a swing in price, then it must be ignored because it has been formed in the Middle, is perhaps a break to get reno var because I was not at a level of questions or a quote level, as a result, the probability is very low for an investment and price could keep the original trend.

Conclusion
You have to remember, a chandelier and all patterns are very useful and used as a tool to confirm a trade Setup with your personal trading strategy. A single chandelier and candlestick patterns offer the best opportunities possible to speculate on future price movement and we are also able to achieve miraculous rewards while trading in Forex, while they are used in the Context, that is to say, as an individual and/or candelabra chandelier all models are formed in a level of support and resistance. We get a double affirmation and so we are able to take advantage of a commercial opportunity to reap huge profits from low-risk.

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