Candlestick Charts Explained - Trading the Patterns

For example, a long candlestick in one chart might actually be average on another chart. A doji candlestick in one market might mean everything whereas, the same candlestick in another market might be a normal occurrence. Determine the signals. This is the next step once you have identified exactly which candlesticks you are dealing with in a In the weekly chart shown, an almost perfect doji has now formed, indicating a week opening at 4,150.25 and a week closing at 4,150.75. The doji in the weekly chart is due to the fact that the daily chart of the Nasdaq Future has gone sideways for the last 5 trading days, as we can see in the next chart. Candlestick charts and patterns can be used in all time frames and when trading stocks, futures, forex, binary options, and every other market that have an open, close, high, and low. As a day trader on lower time frames, it's important to understand candlestick charts . How to trade Forex effectively with Doji candlestick. In Forex, the two types of Doji that provide the most effective trading signals are Dragonfly Doji and Gravestone Doji. When a Gravestone Doji appears, open a SELL order and when a Dragonfly Doji appears, open a BUY order. Open a BUY order as follows: Candle stick patterns you will come across when trading on the IQ Option platform One of the most popular trading charts is the Japanese candle sticks. It's easy to read and know whether the markets are trending or ranging. Each candle in the chart tells a story. Correctly interpreting this story will be important in […] Candlestick charts are perhaps the most popular trading chart. With a wealth of data hidden within each candle, the patterns form the basis for many a trade or trading strategy. Here we explain the candlestick and each element of the candle itself. Then we explain common candlestick patterns like the doji, hammer and gravestone. Doji Candlestick. One of the most popular candlestick patterns for trading forex is the doji candlestick (doji signifies indecision). This reversal candelstick pattern is either bearish or bullish depending on the previous candles. It will have nearly, or the same open and closing price with long shadows. Conditions: A 5-minute Japanese candlestick chart. The expiration time of 5 minutes. Open a DOWN option: The Gravestone Doji candle touches the resistance zone. Open a DOWN option when the Gravestone Doji hits the resistance Things to keep in mind when trading with Doji candlestick – A Doji candlestick appears at a lonely peak. Candlestick charts are available on ThinkForex trading platforms for all assets individuals can trade on the platforms. Below is a sample of a candlestick chart derived from the ThinkForex web trading platform: This chart shows price on the right (vertical) axis, and time on the bottom (horizontal) axis. What is a Doji candlestick and how to spot it in the chart? Definition and explanation for beginners Trading strategy Read more

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