Candle Part iv by NickB (forex4noobs)

Reversal Confirmation

The reversal confirmation is the point at which in the example above buyers flood the market and selling pressure decreases. So now we have a bull controlled market and it begins to move up, a trade is entered somewhere on this candle.

That is what a reversal trade is, we are looking for that transition of power and the indecision candle is our indicator that we might be about to see one. I just want to give you a better understanding of what candles are, what they mean, and most importantly why they mean what they mean. Here are some more of the dumb power slider pics again that show the entire progression of a reversal trade.


























How I Interpret My Charts

When I look at my charts I am constantly thinking like this about the candles. I look at my candles and I can tell when the bulls are in power, when they are about to lose power, and when the bears are about to gain power. This is critical information and it really is extremely helpful to my trading. I read the candles on my chart like a story in a book and after having read that same story thousands of times I usually know what’s coming next. This is part of that intuition I always talk about, this is why I exit trades at the best times, and this is why I rarely get caught in a losing trade. It is all about being able to read the candles and trading accordingly.

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