What Is The Morning Star Candlestick Pattern & How To Trade With It

Morning Star Candlestick Pattern

The Morning Star is a bullish reversal pattern that appears on the bottom of a downtrend. It consists of three main candles. It often indicates the ending of a downtrend and the beginning of an uptrend. What is the Morning Star Candlestick Pattern? The Morning Star is made up of a large candle, followed by a small candle, and a third long candle. The first candle is bearish. It suggests bears are in charge, and the price is making new lows. The second candle has a small body and a long wick. It can be bullish or bearish. It shows …READ MORE

What Is The Hanging Man Candlestick Pattern & How To Trade With It

Hanging Man Candlestick Pattern

The Hanging Man Candlestick Pattern appears in an uptrend. It represents a bearish pattern with a drop in price. The Pattern consists of a small body with a long lower wick and a little or no upper wick. It looks similar to alphabet T. What is the Hanging Man Candlestick Pattern? The Hanging Man describes that the bulls are losing control, and the market is declining, showing the dominance of bears. Its long lower wick shows a significant sell-off, which pushes the price downwards before the buyers push the price closer to the opening levels. Thomas Bulkowski, in his book …READ MORE

What Is The Hammer Candlestick Pattern & How To Trade With It

Hammer Candlestick Pattern

The Hammer Candlestick pattern is a bullish reversal pattern that appears at the bottom of a downtrend. It consists of a small body, having a little or no upper wick, and a long lower wick. It looks like a hammer and the alphabet T. What is a Hammer Candlestick Pattern? The Hammer Candlestick Pattern suggests that the price dropped to a new low, but the buying pressure moves the price to a high, signaling a possible reversal. Hammer’s body defines the difference between the opening and closing prices, while its wick represents the high and low price for the period. …READ MORE

What Is The Evening Star Candlestick Pattern & How To Trade With It

Evening Star Candlestick Pattern

An Evening Star Candlestick Pattern is often used to detect a trend reversals. It consists of three candlesticks referring to a bearish pattern. The Evening Star appears when the market is in an uptrend, signifying the potential that a trend is about to end. What is the Evening Star Candlestick Pattern? The Evening Star is not just a combination of three candlesticks. Instead, it requires an understanding of the previous price action and an existing trend. The Evening Star Candlestick Pattern emerges when the first candle is bullish, followed by a bearish/bullish candle, and the third is a bearish candle. …READ MORE

What Is The Doji Candlestick Pattern & How To Trade With It

Doji Candlestick Pattern

A Doji candlestick Pattern can represent indecision in the market. This means neither the bull nor the bear is in control. In Japanese (the origin of candlestick patterns were from Japan), the word Doji means mistake. What is the Doji Candlestick Pattern? The Doji Candlestick looks like a cross or a plus sign. The upper and lower wicks are of equal length. It forms when a forex pair or a stock opens and closes at the same level, leaving a small cross-shaped body. There are times when sellers and buyers are hesitant to make their move. This is what Doji …READ MORE

Types Of Forex Market Analysis

Types Of Forex Market Analysis

There are many ways in which a trader can analyse the forex market for potential trading opportunities. Whilst many traders only focus on one aspect of analysis, I find it much better to combine elements of each type of forex analysis. This way I can be sure that I have all angles covered when making my trading decisions. If there is conflicting information from each analysis, this can tell me that perhaps the trade position I was considering is not worth taking. In this forex analysis article, we will briefly touch upon some of the most important methods of forex …READ MORE

Five Powerful Candlestick Patterns

Top 5 Candlestick Patterns

Candlestick patterns are one of the key analysis strategies in forex trading that can help assist with your trading decisions. There are various forms of forex candlestick patterns which contain price action within them. This means that they tend to give a more reliable outlook of the current market conditions compared to potentially lagging technical indicators. Here we will take a look at some of the most powerful candlestick patterns. 1. Pin Bar candlestick pattern Pin bars are candlestick patterns frequently used for price action analysis when trading forex. A pin bar candlestick can be a great indication of the …READ MORE

How To Use Currency Correlations To Your Advantage

Currency Correlations Explained

To become a consistent forex trader, you need to understand how sensitive your entire portfolio is to the volatility in the forex market. This is important because forex currencies are traded in pairs. You should know the correlations of the different currency pairs and the way they change over time. Once you know them, you can use them to your advantage and to help manage you overall portfolio’s exposure. It can be easy to see the relationship between currency pairs once you know what to look for. If you are trading the GBP/JPY pair for instance, you are actually trading …READ MORE

What Is The Forex Economic Calendar And How To Use It?

What Is The Forex Economic Calendar And How To Use It

When trading forex online, the economic calendar is considered as an important fundamental tool. The purpose is to demonstrate news statistics, and it is simply necessary to focus on it while trading. The economic calendar publishes macroeconomic indicators and announces important events in the world of economics and finance, such as meetings of central banks, economic conferences, summits, and so on. All events are categorized into three types as per their impact: High impact Medium impact Low impact Naturally, the events related to the high impact category are more frequently used. The rest are not always considered as important, and …READ MORE