Simple forex candlestick strategy

simple forex candlestick strategy

bottom. My Forex price action strategy was born in 2005 and has been constantly improved over the last 12 years this strategy has seen it all. Three Rules to Support and Resistance There are three key rules you need to keep in mind when placing support and resistance areas. Whats an Indecision Candle? Price action doesnt only adapt to changing market conditions though, it adapts to different pairs, different time frames and, crucially, to different traders. In fact, for years Forex trading strategy focussed on reversals only. All price movement in Forex comes from bulls (buyers) and bears (sellers).

M: Forex Made Simple : A Step-By-Step Day Trading

simple forex candlestick strategy

Small Lower Wick (Red Highlight) The small lower wick shows us that sellers were not able to gain much ground either. You also need to make sure you do not enter too early as you could be entering a false setup. If you are about to enter a short trade and you ask yourself Who is in control of price? So, if you enter a long reversal from support, make sure that your target is before the next resistance area. When you see that specific pattern, you assume that something will happen. Candlestick charts show the same information as bar charts but in a graphical format that provides a more detailed and accurate representation of price action. Support and resistance placements still need to be done by a person. This means that my target has to be a minimum.5 times the size of my stop.