Hi,
Most of the traders who follow my blog knows me what type of trader I am But I am also one of you who had torrid times trading and trade everything and First thing I try was Candlesticks Patterns.
What is a Japanese Candlestick ?
While there is no need to explain this concept further as many of us are familiarize to this but I will surely dig in a little and discuss them more in detail in my upcoming posts.
But Really If I ask you about my own experience then would you consider that Candlesticks patterns really help you define the trend, May be most of you really will raise your hands and say yes it did. But for me they do but not at all phases. Little movement at top will give some strong traders room to collect profit and again enter at better price and How would you tackle this type situations. Would you re-enter at second entry or consider first entry as best and would still trade failed test of top or bottom.
So for me, Trading alone candlesticks patterns is not the secret. Situation, patience and reason to Candlesticks is the best way to enter a trade.
Let me clear you with an example of Recent Aussie Chart .
See, Everything In trading is totally synchronize as Fundamentals allow trends to built and create a atmosphere where Technical are also supportive. For me, Its always been combination of Supply and Demand Areas and Reaction of Candlesticks when they reach or surpass the area and also the upcoming events that usually creates or reverse a trend..
But It does not happens everytime you trade because As I said earlier these all things are synchronized and I combine them with the recent market situations and demand and the speed of the trend on weekly and daily time frames and then I use negating techniques when price fall with the same pace it was rising and Candlesticks post neutral statges.
Gbp/usd chart that I posted last week fetch more than I anticipated and still looking for much more advance and I always recommend buying on dips even after Service Purchasing manager Index fall to 56.9 and It was expected much higher. But What happen with that bearish Engulfing pattern after the release.
Let's find out with the help of chart
So, Its quite clear after seeing the above chart that Candlesticks patterns not only thing to rely upon but situations and Imbalance is something that is driving the Price to one corner to other and this will keep happening on higher time frames and we just need to spot those scenarios where we can enter with low risk and chance of getting nice ride is much more than those large and strong fading candlesticks.
Most of the traders who follow my blog knows me what type of trader I am But I am also one of you who had torrid times trading and trade everything and First thing I try was Candlesticks Patterns.
What is a Japanese Candlestick ?
While there is no need to explain this concept further as many of us are familiarize to this but I will surely dig in a little and discuss them more in detail in my upcoming posts.
Japanese Candlesticks Trading
Japanese Create their own old school Version of Technical analysis to trade rice. That's right, rice. Mr. Steve Nilson discovered this charting technique called "Japanese Candlesticks" learning from a fellow Japanese broker. Steve researched, studied, lived, breathed,at candlesticks,and start writing about it. and soon this technique became popular in 90's. To make this discussion short, without Steve Nilson Candlesticks candlesticks charts might have remained a buried secret. So, We can call this technique as Mr. Nelsonsticks.
Back in the day when Godzilla was still a cute little lizard, the Japanese created their own old school version of technical analysis to trade rice. That’s right, rice.
But Really If I ask you about my own experience then would you consider that Candlesticks patterns really help you define the trend, May be most of you really will raise your hands and say yes it did. But for me they do but not at all phases. Little movement at top will give some strong traders room to collect profit and again enter at better price and How would you tackle this type situations. Would you re-enter at second entry or consider first entry as best and would still trade failed test of top or bottom.
So for me, Trading alone candlesticks patterns is not the secret. Situation, patience and reason to Candlesticks is the best way to enter a trade.
Let me clear you with an example of Recent Aussie Chart .
See, Everything In trading is totally synchronize as Fundamentals allow trends to built and create a atmosphere where Technical are also supportive. For me, Its always been combination of Supply and Demand Areas and Reaction of Candlesticks when they reach or surpass the area and also the upcoming events that usually creates or reverse a trend..
But It does not happens everytime you trade because As I said earlier these all things are synchronized and I combine them with the recent market situations and demand and the speed of the trend on weekly and daily time frames and then I use negating techniques when price fall with the same pace it was rising and Candlesticks post neutral statges.
Gbp/usd chart that I posted last week fetch more than I anticipated and still looking for much more advance and I always recommend buying on dips even after Service Purchasing manager Index fall to 56.9 and It was expected much higher. But What happen with that bearish Engulfing pattern after the release.
Let's find out with the help of chart
So, Its quite clear after seeing the above chart that Candlesticks patterns not only thing to rely upon but situations and Imbalance is something that is driving the Price to one corner to other and this will keep happening on higher time frames and we just need to spot those scenarios where we can enter with low risk and chance of getting nice ride is much more than those large and strong fading candlesticks.
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