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Candlestick Patterns and Forex Trading

What is Forex? Don’t ask me that because I really don’t know anything about foreign exchange. How about candlestick patterns? Uhhmm…next question please!

I’ve been hunting jobs last December and me and my very good old friend, Grace, was talking about how hard life and earning for a living is these days with the economic downfall. She then mentioned several MLM and businesses she wanted to venture and is also interested unto the Foreign Exchange trading market and asked me to join her trying it out. And I said, “Huh?” I was totally illiterate when it comes to foreign exchange and couldn’t appreciate candlestick patterns. But Grace was so insistent that I end up hearing myself saying “I’ll look at how we can get some money with it”. I think I’m in trouble.

Candlestick GraphWe both started reading and learning the foreign exchange industry, the candlestick patterns, and the profitability rates. I came across a forex trading software and suggested if we could try it out. Actually, I was too lazy to educate myself with the candlestick patterns and so I looked for several automated programs. Starting the Forex Robot comes with a self extracting installer that comes with a step-by-step guide. They also have a reliable customer support that is available 24/7 plus the over helpful VIP forum. The good thing is that there is no risk on our hard earned money since we could try the Foreign Exchange Robot for two months and if not satisfied with the results we can definitely return it. We did back-testing of the robot for one and half months and was more than satisfied with the results and all the positive trades it got while playing with the settings and configurations. When I and Grace got our live account, we immediately started using it with the forex trading robot. And we both got crazy! It lost 9 out of 14 trades! I started thinking it wasn’t a good idea to use on live accounts and starting to think twice of using it again the next day.  But still, giving the robot a second chance, I started it the next day and was satisfied with the new results it gave us. It did 18 trades for the day and it was all successful and profitable!

Now it’s been a month since we used it and we still couldn’t imagine how great it was. With the right settings, configurations and timing this will truly give us the financial freedom we’ve been waiting for!

Posted 15 April 2010 † John and Grace § Candlestick Patterns ‡ Comments (0) ° Tagged: , , , , ,

Candlestick Pattern Report: Tiffany & Co (NYSE:TIF)

smartrend’s candlestick pattern scanner has detected a bearish harami candle pattern for shares of Tiffany & Co (NYSE:TIF). Friday’s real body is within the previous day’s body and may imply that traders and investors believe that the recent uptrend may be nearing an end. A move down today would confirm this trend reversal. Also, the narrower the red body today, the more reliable the harami. Friday, this company traded 3514090 shares, versus the previous day’s total volume of 3561666. Decreased volume also is an indicator that the buying momentum may have subsided. smartrend issued an Uptrend alert on shares of Tiffany & Co on July 17, 2009 at $27.61 per share (66.7% return since that call). This bearish candle pattern may point to a reversal of the previously called Uptrend.

Posted 01 September 2010 † John and Grace § Candlestick Pattern ‡ Comments (0) ° Tagged: , , , , , , , , , , , , ,

Candlestick Charts and how they can help you trade Forex

imageDo you find it hard to analyse your financial charts in a technical way? Would you like to use a more intuitive, simple method? Read on and find out about Candlestick Charts.Candlestick charts are said to have been  originated in Japan by a rice trader, Homma Munehisa. The charts gave Homma an overview of the rice market. It is said that he once made profit on 100 consecutive trades! Candlestick charts were noticed by Charles Dow in around 1900 and are used very widely today. The charts are now applied to currency markets to predict future movement and to document the open, close, high and low prices for a given period.Candlesticks are normally made up from either a solid or hollow rectangular body and an upper and lower shadow (which would be wicks on a wax candle). The shadows show the highest and lowest price that the security (currency in this case) was traded for in a period of time. The body shows the opening and closing trades. If the security closed higher than it opened, the body is hollow, with the opening price at the bottom of the body and the closing price at the top. If the security closed lower than it opened, the body is solid, with the opening price at the top and the closing price at the bottom. A candlestick doesn’t have to have either a body or a wick. In most charts now, the body is coloured depending wheather the price closed higher or lower than when it opened. Red and green candlesticks are commonplace.Prices are driven by trade and the emotions that govern the people making those trades. Candlestick charts are very good for tracking this in a minute by minute fashion but trading in the short term is known to be risky. Luckily, candlestick charts are equally valid for longer periods. Most modern software enables you to choose a period from seconds to months or even years. This is far safer since long term trends tend to be more stable in nature.Depending on the pattern of candlesticks, they can show bullish or bearish behavior and therefore indicate where a market is headed. Different patterns mean different things of course and need to be interpreted very carefully. There are many patterns to learn but they are visual which can aid the your learning. A course in candlestick charts is essential be it either a book or videos. A good system is recommended below.In this article I have just given a very basic introduction but there is a wealth on information available online. Candlestick charts have been used for centuries and for good reason. They are visual, the patterns are easy to learn and they are a reliable source of indicators. Get the advantage by learning all you can about them.
Posted 30 August 2010 † John and Grace § Candlestick Patterns ‡ Comments (0) ° Tagged: , , , , , , , , , , , , , , , , , ,

Candlestick Stock Investing Charts – Which Course Covers Candlestick Profit Techniques In Full Detail?

Interested in a trader-specific profit course on interpreting candlestick charts.

Posted 29 August 2010 † John and Grace § Candlestick Patterns ‡ Comments (3) °

How many candlesticks would comprise the beginning of an uptrend/downtrend in forex trading?

I would appreciate the expertise and experience of professional traders

Posted 24 August 2010 † John and Grace § Candlestick Charting ‡ Comments (3) °

The Candlestick Pattern – A Profitable Forex Trading Strategy

imageIs the candlestick pattern a profitable Forex trading strategy? Candlesticks patterns were first used in Japan five centuries ago in the Dojima rice exchange. Today, it has become a popular tool for foreign exchange traders to predict currency trends. The system provides data on past and present trading patterns that are used in forecasting movements of various currencies. The Forex market is a good source of income for people who know how to accurately read currency trends. Because of numerous Forex software and programs that are readily available nowadays, more and more people are given the opportunity to engage in foreign exchange trading. One of tools that have helped people earn money in the currency market is the candlestick pattern. Before employing candlestick pattern trading, aspiring traders must first know enough about it. There are many kinds involved here and choosing the right one needs some thought. But for the many that are already into candlestick trading, he 30-minute candlestick chart seems to be the best of the lot and they counsel that before engaging in a trade, one must see to it that the pattern has been completed. There is danger in going ahead without getting the final picture first. There is what traders call the engulfing candlestick patterns. This pattern is considered more reliable than others and the most profitable to use. The term “engulfing” refers to a market situation where the current candle engulfs the previous one. The engulfing patterns consist of the bearish engulfing and bullish engulfing patterns. Both patterns can tell traders which direction a currency will most likely to go after the pattern is completed. The engulfing bullish patterns form when price levels of certain currencies are at their lowest points while bearish patterns will occur when the prices are at their peak. How does one effectively use candlestick patterns to increase chances of earning? The engulfing patterns actually tell what currencies are on the downward or upward trend, which can provide a trader an accurate idea of when to trade. The best times are when there are strong indications that the trend is running its course. The trend may not be that strong but the candlestick chart must provide evidence that the trend is definitely coming to an end. In this case, the candle will have grown smaller. What exactly do traders need to see in the candlestick pattern that will let them start trading? When traders see an up candle engulfed by a down candle immediately following it, it means that there is an upward trend and a short trade is advisable. The downward trend works under the same principle. A profitable Forex trading strategy using candlestick patters entails timing and analysis, but it can certainly make money for traders. Learn how to make money with forex trading now!
Posted 21 August 2010 † John and Grace § Candlestick Trading ‡ Comments (0) ° Tagged: ,

The History and Basics of Candlestick Technical Analysis

imageThe candlestick way of technical analysis traces its roots to Japan from where it originated and now is very popular and used worldwide. Several patterns of candlestick exist on paper as well as on ancient Japanese texts that throw in depth light on the theory and fundamentals of it. It is said that in the seventeenth century the rice trade carried out by the Japanese was done through such form of technical analysis. In 1900, Charles Dow supposedly used this as the basis to create a modern United States version of candlestick technical analysis. But the real credit of this charting process is bestowed upon Homma, a rice trader hailing from a place called Sakata. This method is quite useful to get accurate low, high, close, open prices in a given timeframe. While the shadow of the candle, depicts low and high price points, its body the opening and closing prices.  Some kind of shading is done to which way the price is going. If the candle is shaded going downwards, it means that the price at which a stock closed, was lower than what it opened up to. Similarly, a candle shown shaded upwards shows the opposite. It depicts that the opening price was lower than the closing price. Candlestick technical analysis has lots of variations which are used by different people according to their convenience. Like variation of patterns, of colors used for shading. In the current times, a stock trader needs to be acting as a candlestick technical analyst as well. This is to correctly gauge and understand prices of stock better. Nowadays, there is software also available in the market which does the job of this analysis for the stock trader. It analysis better, accurately and gives several options to the user like of shading, of different patterns that can be used. Technical analysis is a huge trend in the stock markets worldwide. For sustainment and survival of any trader here, one has to ingrain technical analysis into his/her businesses. Candlestick technical analysis in one of the most important components of technical analysis for the features it has and for the way it understands the mind of the trader.
Posted 15 August 2010 † John and Grace § Candlestick Pattern ‡ Comments (0) ° Tagged: , , , , ,

CANDLESTICK PATTERNS

A very early clip from a seminar in the 1990′s. Teaching the fundamentals of Candlesticks and how they could be used to enhance your trading activity Japanese Candlesticks are a method of following market price action and identifying market reversal points and trends. Compared to traditional bar charts, many traders consider candlestick charts more visually appealing and easier to interpret. Each candlestick provides an easy-to-decipher picture of price action. Immediately a trader can see compare the relationship between the open and close as well as the high and low. The relationship between the open and close is considered vital information and forms the essence of candlesticks. Hollow candlesticks, where the close is greater than the open, indicate buying pressure. Filled candlesticks, where the close is less than the open, indicate selling pressure.

Posted 08 August 2010 † John and Grace § Chart Patterns ‡ Comments (0) ° Tagged: , , , ,

Forex Candlesticks And Their Effectiveness At Predicting Price Moves

imageCandlestick charts are used by a lot of forex traders when trading the markets and are generally seen as being more effective than bar charts. This is because they provide a little bit more information and can themselves act as a useful signal provider.
Posted 02 August 2010 † John and Grace § Candlestick Pattern ‡ Comments (0) ° Tagged: , , , ,

Forex Candlestick Charts: Reversals and Blending

imageIf you have ever used Forex candlestick charts, you will certainly recognize them for the helpful tools they are, especially when the foreign exchange market is concerned.
Posted 27 July 2010 † John and Grace § Dark Cloud Cover ‡ Comments (0) ° Tagged: , ,

Candlesticks – Vol 7 – Hammer

- Candlestick Charting – Vol 7 – Hammer

Posted 23 July 2010 † John and Grace § Candlestick Patterns ‡ Comments (10) ° Tagged: , , , , , , , , , ,