💛Learn how to read Forex candlestick patterns 💛
Get an early signal👇
Know when the price shows weakness, reversal hint👇 and more
But in this article, the main purpose that we will learn about candlestick patterns is to know what happens when the price approaches the candlestick pattern. After you have mastered the basic patterns, you can continue to learn and study the patterns.
This post would completely improve your trading analysis process and ultimately lead to huge profits and rate of return
👇Candlestick basics👇
💛Learn how to read Forex candlestick patterns 💛
Body ☝️☝️☝️
The range appears between the open and close during the period of one candle
How strong is the momentum of the bull or bear?
Usually a green colored body indicates that the price is moving up bullish while a red colored body indicates the price is moving downwards
The range is between low and high during this period
It shows how strong the price rejection AKA reversal is
1TH#
Forex candlestick patterns method
Style 1 pin bar
The name says it all about the look. Here is a screenshot of the pin bar.
There are two types of pin bar
Bullish Pin Bar highlighted in yellow
Bullish pin bar
Bearish pin bar
The bullish pin bar is for a buy signal. It is recommended to trade the bullish pin bar pattern during a bounce or downtrend
Example 1
Example 2 Rebound
Bearish pin bar👇Example 2☝️
Example 1
Example 2
Pattern 2 Doji Star
The formation of a doji star indicates a change in trend reversal
Two types of Doji Star
Morning Doji Star 3-day bullish reversal pattern formed during a downtrend The first candle has a long bearish body and the second candle forms a doji The last candle is bullish with a long candle Sometimes there is a gap between the first and second candles but this is not necessary when identifying this pattern because it is in the market Forex You hardly or rarely see a gap
Look for additional upward price movement after this entry pattern
While the evening Doji star is a 3-day bearish reversal pattern formed during the uptrend. The first candle has a long bullish body, the second candle forms a Doji candle that opens higher than the previous first candle, and the last candle is bearish with a long candle.
Look for additional downward price movement after this entry pattern
Pattern 3 Swallowing pattern
The pattern can be applied for reversal and continuation. The engulfing pattern consists of two different colors of candlesticks.
There are two types of swallowing pattern
1 – Bullish engulfing pattern. The first candle is bearish. The second candle must be bullish and engulf the body of the previous candle.
Example 👇👇
Look for additional upward price movement after the entry pattern is formed
2 – Bearish engulfing pattern. The first candle is bullish. The second candle must be bearish and engulf the body of the previous candle.
Example 👇👇👇
1TH
Look for additional upward price movement after the entry pattern is formed
Forex Candlestick Patterns Method in Brief
So here are the basic outlines of Japanese candlestick patterns
Pin Bar style
Doge Star
Immersion mode
Tip 🫠 Make sure to use analyzes and other technical indicators for further confirmation👇
Example of using the Stochastic indicator
The Stochastic line is showing an overbought signal which means a price reversal is likely to occur. It definitely worked
I hope you enjoyed reading this short and simple post about Forex Candlestick Patterns
Following this strategy for Japanese candlesticks guarantees you a profit of 70% and following the same conditions as those for the candles☝️☝️☝️
