Live Fx Day Trading Strategy – Day Trading Forex Reversal Candle Pattern
July 15, 2010 by Forex Guide
Filed under Forex Strategies
To develop into a successful fx fx trader a person need only a couple things. A rock-solid and verified fx day trading method, and the dicipline to stick to it! Within this forex trading article we will discuss the use of fx reversal candle patterns. A method that has proven it works consistantly for years, but ONLY if traded correctly, furthermore ONLY if traded along side dicipline! Also we will talk about what candle patterns are most effective with equally important when to trade them.
First and foremost we will discuss what candle patterns turn out the best forex trading setups. If you are not familiar with traditional candle formations then I suggest doing a bit of examination to identify with the vocabulary better, because this is geared towards the intermediate fx trader with at minimum a beginning understanding of essential candle patterns. The greatest, and most time hardened candle formations are the shooting star in addition to the hammer reversal candles. These 2 candle patterns generate some of the most reliable reversals in addition to trend continuation setups of any candle formations
I have always believed that each and every candle tells a story and it’s up to you the fx trader to be capable to read that story and trade with it profitably. Shooting star and hammer reversal candle formations give you the most knowledge in my outlook. They demonstrate plainly that the market tested a high or low and got rejected which is the first sign that the fx market is going to potentially reverse. Always make certain that these reversal formations are at a previously established region of resistance or support. Simply taking a fx trade on a shooting star or hammer fomation that didn’t hit a area of Support or resistance decreases the likelihood of a good forex trade greatly!
Some additonal points to make your reversal candle formation method more robust, is in the beginning getting in reversal candles only in the path of the overall superior trend. For instance if the market is trending up and then short term retraces down. Taking a buy at the base of that retracement, at an zone of proven support, and after a hammer candle formation closes, gives a trader the best chances of a excellent continuation day trade. This method is discussed throughly in a forex training video called Day Trading Forex – Intra Day Candle Formations that I very much urge you watch.
Also, like most other fx day trading methods make sure you only place trades during active periods of the trading day. In the Live Forex Day Trading Room we only place trades around the European and London open and the first three hours of the NY open. Putting on fx trades outside of the most active periods of the trading day often results in numerous fakeouts and insufficient momentum following a reversal candle pattern. I trust the ideas in this article as well as the forex strategy training video above, aid you in your personal day trading and help you profit for years of fx trading to go!
