As you are in the Forex, you must have some pretty basic ideas about the Japanese candlestick. Here, we are going to analyze some more in-depth topic of Japanese Candlestick. Do not open your notebook and begin to write every sentence we say. It is not a rocket science and we will try to explain to you like a child so you will have no place for confusion in your mind. Try to take it as easily and you can catch the Japanese Candlestick and use it in your analysis in no time.
Japanese Candlestick history: Before we start to explore the world of Japanese Candlestick, we would like to introduce you to the history of this Japanese Candlestick. The contribution of bringing the technique of Japanese candlestick can be given to Steve Nison, who had discovered this technique from some collogue Japanese trader. Steve Nison spent a long time researching and studying this Japanese Candlestick pattern. It was in the 1990s when this covert technique gain popularity.
Bullish and the bearish candle: There are mainly two types of candles in the forex market and that is the bullish and the bearish candle. If the price closes below the opening of the candlestick then it is called bearish candle and if it closes the opening of the candle stick it is known as a bullish candle. Most of the professional traders in Singapore use the basic candlestick pattern in forex trading to execute high-quality trades in the market. However in order to trade the market with the candlestick pattern you need to find reliable and professional brokers like Saxo which offers excellent trading conditions to their traders in the market. To be precise their advanced trading platform provides high-quality price feeds which form pin perfect candlestick signals in different time frames.
Price action signal: Price action signal is considered to be one of the most reliable trading strategies in the trading world. Most of the professional traders use this system to trade the key support and resistance levels in the market. If you are relatively new in forex trading then make sure that you learn the basic pattern of the Japanese candlestick and once you are comfortable with your initial learning stage try to learn the price action signal formed with the combinations of Japanese candlestick.
Reliability of candlestick: Each candlestick in the market has a different story to tell the traders. As a professional trader, you need to understand the market conditions just by seeing the candlestick in the market. Most of the novice traders in the forex market use the smaller time frame and thus executes low-quality trades in them market. So when you do the technical analysis using the candlestick pattern in the market make sure to use the higher time frame since it will eradicate lots of false signals generated in the smaller time frame. It’s true that trading the higher time frame will require an extreme level of patience but this will save you from many losing trades in the market.
Summary: You can use this candlestick in any minute time frame and use it as a tool to analyze the market of Forex trading. If you know how to interpret the candlestick in the market then you are basically learning the art of price action trading strategy. As a full-time trader, you should learn how to trade the key support and resistance level in the market using the price action confirmation signals but before that make sure that you have strong basic in the Japanese candlestick.