First of all, you do not have to worry about the shape of the individual candles when you look for these reasons. In fact, you can start from a graph until you can not see the same body of individual candles when searching for these patterns. Once you have found a pattern you can zoom in and observe the individual candles that form on the right to determine the entry of a key point.
So what are we looking for?
Essentially, we are looking for upper or lower double or triple parts and all the variations that will be explained later. These are formations, where the price hurt at least twice in a row similar prices (and not respected). These are fairly simple ways to know which are the most important turning points in the prices.
If a major turning point in the real-time price to identify, it allows you a new operation in the direction of rotation to open, with a stop loss lower than the price rotation range. If you can win these tricks, you can start bartering again and get a good reward for risk reasons.
The separation between the upper and lower parts of the key. Ideally, you want to search for about 24 to 72 hours.
Note how in the table above, while the first, the lower part is composed of a veil, the second floor is really produced with about 10 consecutive candles. What I mean by “composite candlestick patterns”.
Here is an example of a double ceiling that was made in gold at an extremely high price of $ 1,375 per ounce. Between the peaks there was a period of about 60 hours. A short introduction to almost 2 would make sense at around $ 1368 were with stopping above the maximum at around $ 1376th sessions
There are some variations, so I will explain with examples Candlestick pattern indicators illustrated with reference to time tables. This time is nice to use because it is detailed enough to see the subtleties of price movements, but big enough to filter out a lot of noise. In addition, unlike H4 and daily charts, hourly charts are all alike, regardless of the time zone in which the chart is based.
Best forex indicator
Double or decrease
The basic training you need to look for is a double higher or lower. This is defined as the price to come back later and remove a new high or low evidence reached and removed again at about the same price level. What we are looking for is not immediate, either the maximum or minimum price includes twice in a few minutes or hours, but something that occurs for at least a day, usually more, and together a lot of chandeliers per hour. ,
An example of a double bottom is shown in the table below the USD / CHF pair. Notice how an extremely low price at 0.9635 marks (marked 1), the price rose quickly and significantly, before finally falling back to 0.9635 level, two days later (marked 2) was ready to hit. The price has 4 or “turn” more hours, but realize how significant the increase there was! If you “get away” to see the action Forex trading reviews at this level are passed through several candles in no hurry as soon as the price is hit, it could have gone a lot when the recovery started to really go get a trade to make money in terms of risk performance. Here’s a long entry at 0.9755 would have been logical, with the stop below 0.9635.