The Forex currency exchange is the largest financial market in the world and allows traders to capitalize upon currency trends to generate profits. There are many Forex trading strategies a currency trader could use to profit in this business. If you read this article i am sure you will understand the Forex Candle Sticks Pattern.
Before going to trade candlesticks you should use the chart, these are the best. Use 30 minutes chart and will help you when to trade candlesticks pattern.Wait untill the candlestick pattern gets complete. Don't do hurry and don't make any guesses that when the candle will close.
If we talk about the candlestick patterns then they are of many types. You can find some candlestick patterns are more dependable. Bearish Engulfing and Bullish Engulfing patterns are one of them. These comes under the Engulfing Pattern. If we talk about their nature then these are reversal to each other and these are the most profitable candlesticks pattern to trade. When One candle body engulfs the body of previous candle then this is known as Engulfing pattern. If we talk about the price level of these engulfing patterns then you will find the Bullish patterns at price bottoms and Bearish egulfing at price tops.
How to Trade Engulfing Candles - For trading these engulfing candlesticks you should look the uptrend or the downtrend. This is not a strong trend but you have to wait untill its end. How to know the trend is ending? Wait and look, when a trend will starts comming to its end then the candle will reduce in size. This is the time when you should look reversal in price action. This could also be the beginning of a consolidation period, so we need to be aware of that.
The up candle is followed by a down candle in an uptrend and the body of the previous up candle is engulfed by the down candle. This is the setup we want to see so we take the short trade immediately following the close of this candlestick. After that we know our stop loss by counting the pips which are away from the highest last two candles and we add 5 pips in it.Your profit target should be twice to this value.
For knowing more about the candle sticks you can search the web and learn more about them. They are available in number so you should have focus on few. These types of candle patterns are one of hte best patterns so if you use it then sure you will get great profit. If you are using these types of candle patterns then belive me you will do well.
Forex Candlesticks are one of the most reliable technical indicators. If you want to know more about the forex candle patterns then you can visit to: http://www.forexcandlestickmagic.com/forexcandlesticksblog/