Thursday, September 27, 2018

Candlesticks can be used to increase trading profit

Candlestick Can Be Used to Increase Trading Profit You know - Candlestick is an ancient charting method that emerged in Japan and has proven its accuracy from the past to the present. Although it has been used for so long, its popularity has become a part of popular technical analysis used by traders. As an explanation, analysis with candlestick patterns is included in the discretional analysis method. This means that technical analysis through this candlestick pattern relies on the subjective intuition of traders in understanding the price patterns contained in the chart to become an actual trading execution. In implication, consistent profit can be brought with experience and high flight hours.
Favorable Candlestick Pattern
The more developments in the world of forex, the more variety of candlestick patterns also emerge, such as the pattern of one stem, two bars and so on. However, of all these choices there are several candlestick patterns that are profitable so they must be known.
Candlestick patterns will generally follow the systematic analysis of technical confirmation signals are always on standby to be easily understood by beginners. The signal level means the candlestick has formed a pattern that will show up or down movement, it's just that traders have not been advised to place a position first. Traders have been advised by the candlestick confirmation level to install a position following the direction of movement that matches the pattern that appears.
Here are the categories of profitable candlestick patterns that correspond to the confirmation form in the opening position.

  • Pinbar Pattern

Pinbar patterns are one of the most profitable candlestick patterns that appear on the chart. This pattern is easy to recognize because the shadow shape is always longer than the body and nose tip. The longer the shadow compared to the nose and body, the higher the indication the trend and reversal will occur. This pinbar candlestick pattern is formed because of an indication of market sentiment that had been headed in a direction but then reversed and left a long shadow. For example, when the price approaches the resistance and support limits, the pin will show a reversal.

  • Inside Bar Pattern
This candlestick pattern usually often appears when the trend reaches its highest and lowest points. The Inside Bar pattern is always represented by the characteristics of two candlestick bars, in which one of the stems is smaller and is in the range of Mother Bar. Pattern candlestick Inside Bar can identify consolidation between seller and buyer. Where both are still pulling each other until one of the parties dominates and forms a new trend.

  • Three Outside Up and Tree Outside Down patterns

This pattern is included in the development pattern of the Inside Bar. The difference is this pattern creates the first candle that is smaller or is in the next candle. This indicates that the first and second bars experience greater pressure between the seller and buyer and the third bar will confirm the winner between the two. The Three Inside Up Pattern Task is indicating a Bearish reversal, while the Three Inside Down pattern indicates a bullish reversal opportunity.

  • Evening Star and Morning Star patterns

This pattern is in a favorable pattern. The formation consists of a pattern of three candlestick bars that indicate the doubts of market participants. However, the third candlestick confirms where the next direction of the price direction. The Evening Star pattern indicates a bearish reversal, whereas the Morning Star pattern that appears after the downward trend period, there will be a high probability for a bullish reversal.

The thing to note in filtering the accuracy of candlestick patterns is to pay attention to the choice of timeframes. A high timeframe will generally produce noise that is lower than the candlestick pattern on a low timeframe, so the accuracy of the trading signal is higher. Others, do not rush when doing market orders before there is confirmation from other candlestick bars. Use indicators that have high accuracy such as RSI and MACD.
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