Core Trading Skills Part 1: Candle Patterns
Hey guys, please excuse the grammatical errors on this article, I have yet to check for errors. This is the first part of a 3 part series on candle patterns. I want to try and explain in an easy but detailed way what candles actually are and how to read them properly. This is also the first in a 3 part series of articles in which I will discuss candles, s+r lines, and price action. Anyway hope you enjoy this....
Candle Patterns Part 1 of 3
Running Forex4noobs.com I often get to speak to newbie traders about their trading systems. Sometimes I have to hold back laughter when I see these overly complex indicator based systems. Most traders do not know that the candles on their charts give them so much more information than indicators ever will. Here is a short list of what some simple candle reading can tell a trader about current market conditions:
Traders tend to look at candles and see these little boxes that tell them highs, lows, opens, and closes. However candles are not so black and white, they are actully a window into the markets mind. They reflect to us what buyers and sellers are thinking and that information is invaluable to a trader. The only problem is you have to know how to read it.....
Can you read candle patterns?
I am guessing you have already studied that huge list of candle patterns with all those strange names, and you have probably already tried to commit all that drivel to memory. You know what though? It is impractical to remember all those patterns and what they mean. That list simply gives you the illusion of being able to read candle patterns without ever actually learning how to read them. I you do not know what list of candle patterns I am talking about GOOD don't even bother looking for it as all you will be doing is filling your head with useless nonsense.
In this article I am not just going to show you a pattern and tell you what that pattern means, that is the fools way of reading candles. In this article I am going to teach you how to truly read a candle pattern. I am going to explain how and why candles form the way they do. This insight, I hope will give you the knowledge and skills you need to be able to read all candle patterns. So forget about all those stupid candle pattern names like dojis, hammers, and morning stars. Its time to learn how to read and interpret all candles by learning how and why they form.
Candle Reading For Dummies
Before we delve into reversal patterns I am going to have to tell you what bullish and bearish candles are and what they mean. I know, I know, you’re not stupid but just keep reading because you might just learn something here. This is what I am talking about when I say black and white, bullish and bearish candles seem like a black and white thing, very simple, no-thinking-needed. However even these two basic types of candles can have little shades of grey hidden away deep inside. So let’s jump in and discuss bullish and bearish candles:
Candle Part i
Candle Part ii
Candle Part iii
Candle Part iv
Hey guys, please excuse the grammatical errors on this article, I have yet to check for errors. This is the first part of a 3 part series on candle patterns. I want to try and explain in an easy but detailed way what candles actually are and how to read them properly. This is also the first in a 3 part series of articles in which I will discuss candles, s+r lines, and price action. Anyway hope you enjoy this....
Candle Patterns Part 1 of 3
Running Forex4noobs.com I often get to speak to newbie traders about their trading systems. Sometimes I have to hold back laughter when I see these overly complex indicator based systems. Most traders do not know that the candles on their charts give them so much more information than indicators ever will. Here is a short list of what some simple candle reading can tell a trader about current market conditions:
- Who has control of the market the buyers or sellers (bulls or bears).
- When the market is ready to turn around i.e. bearish trend is dying and bullish trend is starting.
- What buyers and sellers are thinking and where the price is heading.
- When to take profits from an open position.
- When to hold an open position.
Traders tend to look at candles and see these little boxes that tell them highs, lows, opens, and closes. However candles are not so black and white, they are actully a window into the markets mind. They reflect to us what buyers and sellers are thinking and that information is invaluable to a trader. The only problem is you have to know how to read it.....
Can you read candle patterns?
I am guessing you have already studied that huge list of candle patterns with all those strange names, and you have probably already tried to commit all that drivel to memory. You know what though? It is impractical to remember all those patterns and what they mean. That list simply gives you the illusion of being able to read candle patterns without ever actually learning how to read them. I you do not know what list of candle patterns I am talking about GOOD don't even bother looking for it as all you will be doing is filling your head with useless nonsense.
In this article I am not just going to show you a pattern and tell you what that pattern means, that is the fools way of reading candles. In this article I am going to teach you how to truly read a candle pattern. I am going to explain how and why candles form the way they do. This insight, I hope will give you the knowledge and skills you need to be able to read all candle patterns. So forget about all those stupid candle pattern names like dojis, hammers, and morning stars. Its time to learn how to read and interpret all candles by learning how and why they form.
Candle Reading For Dummies
Before we delve into reversal patterns I am going to have to tell you what bullish and bearish candles are and what they mean. I know, I know, you’re not stupid but just keep reading because you might just learn something here. This is what I am talking about when I say black and white, bullish and bearish candles seem like a black and white thing, very simple, no-thinking-needed. However even these two basic types of candles can have little shades of grey hidden away deep inside. So let’s jump in and discuss bullish and bearish candles:
Candle Part i
Candle Part ii
Candle Part iii
Candle Part iv
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