Japanese candles
A very interesting and effective method of predicting rates in the foreign exchange market for many years continues to be a Forex candle analysis or, in other words, the use of patterns of technical analysis. The basic principle of Forex candlestick analysis is to find on the price chart standard patterns (reversal or continuation of the trend), the interpretation of which allows with sufficient accuracy to predict the further behavior of the financial instrument quotes.
Analysis of combinations of Japanese candlesticks and patterns of technical analysis - accessible, effective, free
At ForTrader.org we look at the basic Forex candlestick patterns, or candlestick patterns that traders have been using for decades, as well as the very new and improved figures of technical analysis, developed by the current and popular trading strategies of today. But most importantly, the analysis of Japanese candlesticks is suitable for both experienced traders and novice speculators. It is proved by stock exchange history.
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The figure of technical analysis "wedge" is similar to the price models "Vympel" and "Triangle" by its form and time of formation. But still "wedge" has its own features: - In contrast to the figure of "Vympel", "Wedge" does not have a pronounced preceding trend. - After the price leaves "Klin" consolidation zone, when breaking through the price pattern it is impossible to detect the final destination of the price movement, we can only speak about the continuation of the initial trend. - Another distinctive feature of the "Wedge" price pattern is its more noticeable slope angle to the main movement. It means the correction pullback, following the logic of the "wedge" will be deeper than, for example, for "Pennant" or "Flag". Thus.
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Price pattern "Rectangle" is a classic example of price consolidation in a narrow range before further market movement in the chosen direction. Rectangle" price pattern, located in the consolidation area, as a rule, has clear and pronounced horizontal support and resistance levels (without updating of maximums and minimums). In the stock markets such price pattern appears at the moments when traders and investors expect the release of important news, the results of which they doubt. After the publication, confirming the expectations of speculators, they continue to move the price in the previously chosen direction. Working out of the technical analysis pattern "Rectangle" After breaking through the resistance level in the bullish price pattern "Rectangle" the price passes the distance equal to the height of the rectangle. In a bearish price pattern...
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The figure of technical analysis "Pennant" is a frequent model of continuation of a trend on various stock exchanges, including . In its essence, "Pennant" is similar to the continuation pattern "Flag" with the only difference that it has the form of a converging triangle. This figure of technical analysis is a corrective movement with a narrowing range after a strong trend up or down. In fact, this is a period of fixing profits before a new breakthrough in prices. Trading signals of the figure of technical analysis "Pennant". If the trend is ascending, the algorithm of working with the figure "Pennant" is as follows: when breaking through the resistance line we open a long position with Stop-Loss just below the minimum point of correction and the potential target, equal to the movement of the initial trend is up. At.
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The technical analysis pattern "Flag" appears on price charts frequently and on almost all timeframes. It can be identified both on five-minute candles and on the weekly chart. The "Flag" pattern most often emerges after a strong price movement of the selected asset in one direction and represents a narrow consolidation zone, usually in the opposite direction from the initial impulse. The components of the figure of technical analysis "Flag" In the figure "Flag" distinguish: "flagpole" - the initial price impulse, and the "flag" itself - consolidation, a narrow price channel bounded by support and resistance levels. In most cases the length of "flag" is one third of the length of "flagpole". Trading signals of the technical analysis figure "Flag" The figure...
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Let's continue to get acquainted with graphical technical analysis. Last time we talked about big formations - trend reversal patterns. Today I will tell you about the peculiarities of trend continuation patterns - "Flags" and "Pennants". Figures "Flag" and "Pennant". - Uncomfortable sideways The "Flag" and "Pennant" figures can be formed both after a rise and after a fall. There is often a question about the interpretation of these figures of technical analysis, because it is easy to confuse them in the process of their formation. I never try to determine on a live chart in the moment, which is forming now - the "Flag" or the "Pennant"? I start from the philosophy of formation of these figures. "Flag" or "Pennant" - is a tedious little sideways pattern in which...
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One of the most controversial graphical figures of technical analysis of the continuation of the trend on , are triangles. In fact, triangle shapes are similar in their construction to "Pennants" and "Flags", but without the initial upward/downward movement. Symmetric Triangle Trading Signals What is a symmetric triangle and how is it formed? When the bulls and bears are in equilibrium in the market, and volatility gradually subsides, the price is "clamped" in a narrow range. We can make a symmetrical triangle with at least two points of lows and two points of highs in this narrowing formation. As a rule, a symmetrical triangle pattern will look like two converging support and resistance lines. Once we have overcome the narrow range and narrowed the chart...
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Every trader knows about the figures of technical analysis and many use them in their trading. But it turns out that not everyone knows how to trade by them correctly. If there are no problems with the figure definition, its marking etc., many traders, especially beginners, are at a loss as to where to place stop-loss and take-profit orders. Let's try to understand it by taking the most popular TA figures. The figure of a trend reversal "Head and shoulders" The figure of the technical analysis "Head and shoulders" is a reversal and means the end of the uptrend. The mirror figure is "Inverted head and shoulders" - the sign of the end of the downtrend. The figure, as it is clear from the name, consists of schematically displayed two "shoulders"...
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Фигуре разворота тренда «Голова и плечи» посвящено достаточно большое количество исследований и публикаций. Авторы сравнивают ее с волновой структурой Эллиотта, со схемой процесса накопления и распределения, характеризующей деятельность крупных игроков на рынке , и даже разрабатывают обратные торговые стратегии, основанные на нежизнеспособности фигуры «Голова и плечи» в определенных рыночных условиях. Упущенные аспекты фигуры технического анализа «Голова и плечи» Являясь сторонником гармоничной торговли и предпочитая проводить анализ в его классическом понимании, я, в свою очередь, хотел бы обратить внимание на два немаловажных аспекта, о которых не стоит забывать трейдерам, использующим фигуру технического анализа «Голова и плечи»: Во-первых, ее можно разложить на части, каждая из которых является…
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The use of patterns in trading on the currency market, be it Price Action, candlestick patterns or technical analysis patterns, is one of the popular methods of price forecasting and is used by many traders. Nevertheless, there are many examples when a seemingly perfect pattern "cheats" the trader, not realizing its potential. Today we will consider one of the ways to improve the efficiency of graphical patterns on the currency market. Unfortunately, cases of "non-performance" of the patterns on the currency market are common. It is enough to have a closer look at the chart to find them. Of course the older the timeframe the higher the probability that everything will work, but on larger...
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The figures of a trend reversal "Double bottom" and "Double top" appear on the price chart quite often, and at any time interval. In technical analysis they are quite a strong sign of a trend reversal. Tehanalysis figure "Double bottom" is formed when trend is descending, and "Double top" - when trend is ascending. Let's consider the figure with an example of "Double top" trend reversal pattern. The price, having overcome the resistance level, reaches a certain maximum, after which it rolls back to the previous resistance level, which is already a support for Double Top TA figure. The price pushes away from this support and makes the second attempt of growth, but not being able to break through the maximum of the first top, begins to...
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Hello, dear colleagues. Today I bring to your attention the third lesson of the series "Price Action Trading Methods". And today I will begin the story of simple Price Action price patterns. Why do I begin? Because I cannot discuss them all in one lesson. But before we proceed directly to the patterns, let's define the basic concepts. Pattern is an English word the meaning of which is translated in Russian as "pattern", "system", "structure", "principle", "model". Because of its use in various Western disciplines and technologies, it has entered the Russian-speaking environment as a specific term in several spheres of activity at once. Thus, we can say that Рrice Astion is a trade...
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We continue to analyze candlestick patterns indicating a reversal of price movement. In the previous article we discussed "Hammer" and "Hangman", now we will talk about a fairly common reversal candlestick pattern "Absorption" (Jap. Tsutsumi). Rules for the formation of a candlestick pattern "Absorption" For the formation of a candlestick pattern, both bullish and bearish, a number of conditions must be met: The presence of a pronounced trend; The body of the second day must completely absorb the body of the previous day. However, it doesn't mean the tops and bottoms of the two candlesticks can't coincide, it only means the tops and bottoms of the two bodies can't be both equal; The color of the first day reflects the trend: black color in case of a downward trend...
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Candlestick analysis of the currency market has been popular for over 200 years. Invented by the Japanese, it confirms its effectiveness today and therefore is in demand by traders. Candlestick patterns are a combination of market bars from 1 to 5, which predict further market movement. How to trade using candlestick analysis? When trading using candlestick patterns, known as candlestick analysis, you don't need anything but a streaming chart. The market indicators are the bars and their formations. This is especially useful for long term trading on higher timeframes when it is necessary to look into the terminal only once a day. Using the candlestick analysis in trading is quite simple - you just need to know...
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In today's article, we will consider in detail one of the tactics of trading by technical analysis, namely the reversal candlestick patterns, which are called "Stars" in the market. What are these reversal patterns, how to identify them on the price chart during trading, what signals to open positions they show, and this is what we will talk about next. The formation of the reversal pattern "Star" At the market it is believed that the reversal candlestick patterns often give very strong signals of a close trend reversal in the opposite direction. As mentioned above, these include the "Star" patterns which in turn have subtypes: morning star and evening star, but we...
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Японские свечи – это уникальный индикатор, программа, направленная помочь трейдерам со всего мира в ведении торговли. Не для кого не секрет, что заработок на электронной валютной бирже не даётся легко. По крайней мере это ясно каждому, кто имеет к финансовому рынку хоть какое-то отношение. Если позволяет зарабатывать много и быстро, это ещё не значит, что он позволяет зарабатывать легко. Правда, когда будущие игроки только собираются изучать основы финансового рынка, только начинают интересоваться трейдингом, они даже не подозревают об этом. Многие считают, что заработок во всемирной паутине не доставит им больших хлопот. Но уже на этапе обучения игроки убеждаются в том,…
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