example of a doji candlestick confluence with the dominant downtrend, as if formed telling you to sell the market with the trend. For example, in a downtrend, you will sell when the market is just doing an upswing! Now, here the thing about larger timeframes: They cover up trading setups that are happening in smaller timeframes that could be really reliable trading setups. But personally, I do not like that approach. The chart below shows and example of what can happen when there is major forex fundamental news release: This is one experience I will never forget. When you see this pattern form in a resistance level or in an uptrend, this is a bearish reversal signal and may indicate that the uptrend is ending and you should go short (sell). One method of calculating profit target is to measure from the head up to the trendline and what the distance in pips is your profit target. I will explain this concept shortly. The chart shown below is a really ideal case, see chart below for clarity: But you know that in reality, the market is not like that, its more like this chart shown below: The chart above shows an initial downtrend and along the way there. If you have winning streaks, dont get overconfident and risk more.
These are, forex trading systems that are based on price action.
Either they can be pure price action trading, which means they only rely on candlesticks and (or) chart patterns or a combination of other.
Forex indicators with price action.
Most popular forex currency pairs, The black book of forex trading pdf,
Track 'n Trade Stocks, free 14-Day Trial Premium Bundle 50k Paper Trading Account! Because the market is not perfect when these trends are happening, you should develop the skill to judge when a trend is still intact or when a trend is potentially reversing. Pricing.1 MB - Windows 10, 8, 7, Vista, Mac? For the lower shadow, price is moving down but the market sentiment changes and price is pushed up towards the close buy the bulls. The second bullish candlestick should close somewhere up the mind-point of the first candlestick. Can you see how the need for using other indicators is diminished once you understand how easy is to spot such trading setups like these? So doesnt it make sense to grow yourself in getting this right? (Call it whatever you like, if you think Im wrong, I really dont care). This can works for you or against you. This is what tends to happened with such long breakout candlesticks.