Forex Trading is all about trading Zones not Candlesticks.

Forex Price Action is a unfold story, and its success and failure is also hidden till the time we find out ourselves, And the whole story move around the candlestick behavior,trendlines, patterns and fibonacci and specially when breakouts are due to news or some strong expectation prior to the release and other riskier events.

A complete Forex Trading Strategy should be based on trading zones, not on candles, trendline or Fibonacci Patterns. I will give you simple examples that even though market behavior is natural and it is affected by Natural, climatic and political events but real trading behavior is based only on demand and supply of Available assets. So, How can you say the Trading signals should be based on lagging Indicators, Expert advisor and Candles. For me Candlesticks trading gives you a satisfaction or overall trend but no clues that it will keep going up or down in the same way it has gone right after the break.

Also watch:- How I trade Inverse Head & shoulder and grab 300 Pips

Strong Candles are only part of News or Risky Events

As I have stated above in my article that Forex Trading Strategies should be based on understanding and implementing the logic and context written there off and untill we find out the reason of trend is about to resume or collapse, we found ourselves in only loose loose situation, and our emotions and bias force us to take those trades which are based only on candles and trendlines.

We all sort of have same mindset to enter prior to release and key event in hope of missing some strong movements so we often found the strong moves low and depend on candles low or high to protect us, in case move went against us and we got shocks when that key event is released and market went totally against our prediction and we don't have option but to cut loss early or let the stop get hit and just watch it market doing it.

What we left with is spike and sideways movement most of the time and before next movement stop hunters secretly found that hidden stops below candles which is used without revision and mean and that is the big reason of our failure. I have come up with the thoughts of letting everybody know, novice or experienced that whenever you trade Forex Candlesticks look to see the closest zones and valid context and IF you don't see any of these just stop and look for the reaction after the move has happened.

Candles stops hunting after UK Manufacturing PMI data

Here I come up with most recent and strong example of stop hunting just prior to the release of key even of Britain, which effects the currency pair great Britain pound (GBP) and when that data hit the market pound was sold across the board heavily, and just few seconds prior to the release it was very strongly bid and strong cash flow was witness but it all faltered just after the release and market immensely liquidate throughout the day and follow up the next day as well.

Tuesday, 3rd of May 2016, Just prior to the release Pound was strongly bullish with recent trend picking up momentum from lows and was in full flow, and strong bullish candle to start off the session and usual break out of the prior day high was good enough to push for smart money and price was the best one to hit the supply and reverse and stops were hit both way around the candle and that is how market use to behave with candles and even with strong moves, I can show that only 10-15% of the time strong trends breakouts with strong candles succeed.