One of the most importants things in your journey to become a successful trader is to know your candlesticks , which were invented by me back in 1992 when I was 2 years old. Hopefully you already realised that I am joking 🙂
Candlesticks were founded in Japan by Homma.He used them for his rice exchange, but later he used them in stock exchange, making millions off of it ! He made over 100 winning trades in a row using pure candlestick patterns and nothing more.Knowing your candlestick you can identify what is happening within the price
If you see a strong up trend and then suddenly the candles are getting smaller with a lot of wicks at the top, it is a strong sign that the trend is weakening and a reversal is coming soon, even that at later point it can take off again.
You can also combine candlestick patterns with other indicators like Bollinger Bands or support and resistance, and most importanly Price Bars that is included in the VorteXz Trading Sytem ! If the price hits the upper bollinger bands, Price Bars reaching a +8 level and the candlestick patterns show the trend is weakening then you have a great reversal setup !!!
I myself have studied the candlestick patterns for hundreds and thousands of hours, I can recognize strong patterns only by looking just for a few seconds at the market.At first I needed a longer time to identify good trades but now it just comes so naturally.There are hundreds of candlestick patterns and then again hundreds of different names for those patterns, honestly I don’t even know myself all the names of those hundreds of patterns, but in reality you don’t even need to, unless you are a NERD, which I hope you are NOT.
I am going to just go over the main candlestick patterns that I usually look for and I consider most important and reliable.
Doji- A doji is when the candle has a wick at the top (above) and a wick at the bottom (below) at the opening price of the candle. The price is moved up and below, but when it closes it closes just where it opened. It shows the bears and the bulls are neutral.For example, If the price has been going up hard and a doji appeared, it is a strong sign that the up trend is weakening, we might see a reversal or even a trend change.
Engulfing– Engulfing Patterns are good to know because they show you how strong the momentum is. An engulfing pattern engulfs the entire previous bar. If the price is trending up very hard and then pulls back, you’re waiting to re-enter with the trend. If you are a trend trader you might want to look for engulfing patterns
Pin Bar– Pin bars have a really small body and really long wicks! Pin bars show the rejection of a price level and is a strong indication of price reversal. If price is going up hard and then has a big upper wick and a small body closing closer to the bottom, that shows that the trend most likely is going to reverse:
Inside Bar– Inside bars, what a really good pattern. The candlestick basically has to close inside of the previous bar. When you are trading inside bars you want to trade when the “mother bar” gets penetrated
Like I told you earlier, you don’t want to use candlestick patterns alone and you need to combine them with Price Bars and Bollinger Bands.Once again I recommend you VorteXz Trading System which is the ULTIMATE tool for a trader, guaranteed !:)
I like candlestick patterns so much because it can show you where the price is headed for a short period of time.In my opinion, candlestick patterns are the key to binary options trading and will increase your trading success dramatically ! I bet that those “signal providers” from the “competition” will first discover them after reading my bad-ass article ,Cheers from VorteXz !
Candlestick patterns are a must learn for every trader, but remember I’ve told you we don’t need to be NERDS and we need to keep it simple, the candlestick patterns i’ve showed you here are all you need to learn !