Posts Tagged ‘live forex trading room’
To become a lucrative fx trader you need merely a couple things. A solid as well as proven fx day trading strategy, and the trading dicipline to not waiver from it! In this forex trading article we will discuss the function of forex reversal candle patterns. A strategy that has established itself for years, but ONLY when traded properly, and ONLY if traded along side dicipline! Also we will talk about what candle patterns are most successful with equally important when to trade them.
First and foremost we will discuss what candle patterns generate the greatest day trading setups. If you do not understand ordinary candle patterns then I suggest doing a bit of study to identify with the vocabulary better, as this is more focused towards the intermediate fx trader with atleast a beginning knowledge of fundamental candle patterns. The greatest, and most time weathered candle patterns are the shooting star and the hammer reversal candles. These 2 candles manufacture some of the most reliable reversals and trend continuation setups of any candle patterns
I have always believed that each and every candle tells a story after that it’s up to you the fx trader to be able to interpret that story then trade with it profitably. Hammer and shooting star reversal candle patterns present you the most information in my view. They demonstrate clearly that the forex market tested a low or high and got rejected which is our first sign that the fx market is ready to possibly turn around. Always make sure that these reversal patterns are by a previously confirmed region of support or resistance. Purely taking a trade on a hammer or shooting star candle formation that did not hit a area of S/R decreases the probability of a good trade greatly!
Some additonal points to make your reversal candle pattern strategy more robust, is initially getting in reversal candles only in the direction of the overall bigger trend. For example if the fx market is trending up and then short term moves down. Entering a buy at the bottom of that retracement, at an region of established support, and after a hammer candle formation closes, gives you the best probability of a excellent continuation day trade. This strategy is covered in depth in a fx education video called Day Trading Forex – Intra Day Candle Formations which I extremely recommend you view.
Also, similar to any other fx day trading strategies be sure you only place trades during volitile times of the trading day. In the Live Forex Day Trading Room we only take trades near the European and London open in addition to the first 3 hrs of the NY open. Putting on forex trades outside of the most volitile times of the day often causes numerous fakeouts as well as lack of momentum after a reversal candle formation. I hope the recommendations in this article in addition to the fx strategy education video above, aid you in your own trading and benifit you for years of trading to come!