Memorizing double candlestick patterns can be a bit more challenging, but the trading results can be very rewarding. As with the single Japanese candlestick patterns, these come in bullish and bearish versions. The most basic type of dual candlestick formation is the bullish or bearish engulfing pattern. Simply put, the engulfing pattern occurs at the … Continue reading Double Candlestick Patterns
Group candlestick patterns are more creative but take time to form. Generally, these are believed to be more effective signals when they occur on the longer-term time frames. First is the three-inside-up or three-inside-down pattern, which is basically indicative of a possible reversal. It can be considered a harami double candlestick pattern plus an additional … Continue reading Group Candlestick Patterns
Support and resistance are two of the most frequent forex terms you will come across in technical analysis. Simply put, support refers to a floor in price action where a downward movement changes course. On the other hand, resistance stands for a ceiling in price action where an upward movement reverses. A good rule … Continue reading Support and Resistance
Forex traders often say that “The trend is your friend” because a market uptrend or downtrend provides several reliable opportunities to catch pips. During these kinds of market behavior, trend lines and channels can be the most reliable technical analysis tools. Trend lines are drawn simply by connecting the recent highs or lows of price … Continue reading Trend lines and channels
Pivot point calculation can be tedious for some but there are traders that find this method very reliable when coming up with shorter-term trade setups. Trading the news or economic events can also be combined with intraday setups using pivot points. In particular, range traders look at pivot points for potential reversals in price action. … Continue reading Pivot point calculation methods
