Forex Candlestick Patterns - 3 Best Forex Patterns Based on Candlestick Indicators
Forex Candlesticks Patterns are one of the most commonly used indicators on forex charts. However when a trader starts doing more research, they come over 100's of patterns and most of them are left confused on which one is the most dependable and which ones should be discarded.
To help you with that, I am suggesting you three forex candlestick patterns that you must be aware of. Before I begin, let me mention that I am suggesting these candlestick formations on the basis of -
1. How frequently do they appear.
2. How much dependable are they and
3. How difficult or easy are they to spot.
With that said, lets go straight through the top 3 candlestick patterns in Forex store -
1. Bullish and Bearish engulfing pattern - One of the most tasteless and one of the straightforwards to recognize and make trade decisions. When a vital sized bullish candle is engulfed by a long bearish candle during an uptrend, this may signify that uptrend is about to end and the downtrend may be resuming. This is bearish engulfing. This facts when combined with other technical indicators, can help in development a decision regarding chance or windup of a trade.
Vice-a-versa is true for bullish engulfing forex pattern.
2. Evening and morning stars - Equally reliable, but this candlestick formation is not that common. However, when spotted, a lot of traders place trade without even waiting for a confirmation.
3. Forex Candlestick Doji - This is not a pattern, but just a singular candlestick formation. However, its formation on a forex chart signifies that the existing trend is about to end and a trader should make a trading decision whether to keep the trade open or adjusting of stop losses etc. When it is seen on a daily chart, a lot of traders close their trades.
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