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About 'good forex signals'|Vladimir Ribakov Forex Signals And Mentoring Club Review







About 'good forex signals'|Vladimir Ribakov Forex Signals And Mentoring Club Review








               There               are               perhaps               hundreds               of               books               written               on               candlestick               chart               patterns               featuring               several               hundred               of               the               different               candlestick               chart               patterns.

Although               there               are               these               many,               do               not               get               pinned               down               by               the               sheer               number               of               candlestick               chart               patterns               a               trader               has               to               learn.
               Get               Comfortable               With               Candlestick               Chart               Patterns
               There               are               only               a               few               basic               candlestick               chart               patterns               to               get               started               off               with               and               this               write-up               will               showcase               one               area               of               candlestick               chart               patterns               and               that               is               anticipating               reversals.

These               candlestick               chart               patterns               will               cover               most               reversal               scenarios               and               a               trader               has               just               to               get               really               good               with               them.
               Recognizing               Candlestick               Chart               Patterns               With               Ease
               The               most               common               and               powerful               candlesticks               chart               patterns               to               indicate               reversals               are:
               1)               Doji
               2)               Spinning               tops
               3)               Evening               and               morning               stars
               4)               Double               or               triple               tops
               5)               Head               and               Shoulders
               Doji
               Dojis               are               formed               when               price               opens               and               closes               at               the               same               level               in               a               candlestick,               indicating               price               indecision.

They               are               most               significantly               seen               after               extended               periods               of               rally               with               long-bodied               candles.

A               trader               should               only               placed               importance               on               doji               occurring               on               long               rallies               with               big               moves               and               not               on               dojis               found               in               range               bounds.
               Spinning               tops
               Spinning               tops               indicate               that               buyers               and               sellers               have               clear               sense               of               what               the               market               direction               will               be               from               the               small               bodied               candlesticks               formed.

The               forces               of               supply               and               demand               are               equally               balanced               and               they               will               normally               show               up               at               the               end               of               a               long               run.
               It               is               a               clear               sign               that               the               current               trend               is               running               out               of               steam.

It               is               also               a               good               idea               to               use               it               in               conjunction               with               other               indicators               for               confirmation               of               trend               reversal.
               Evening               and               morning               stars
               An               evening               star               forms               when               the               signs               of               first               candle               showing               a               long-bodied               candlestick               followed               by               a               candlestick               with               short               body               with               a               long               wick               and               lastly               a               long-bodied               candlestick               in               the               opposite               direction               which               covers               much               of               the               first               candle               length.

The               reversal               signal               will               even               be               stronger               if               the               second               and               third               candle               has               a               huge               price               gap.
               The               formation               of               the               morning               star               is               the               exact               opposite               of               the               evening               star.
               Triple               and               Double               Tops
               These               two               formations               are               very               common               and               very               powerful               combinations.

It               occurs               when               price               his               a               support/resistance               level,               retreats               and               attempt               to               break               the               level               once               again.

The               price               fails               and               thus               indicates               a               huge               signal               that               the               trend               is               reversing.
               Head               and               Shoulders
               This               formation               is               similar               to               the               triple               top               except               that               its               middle               peak               is               higher               or               lower               than               the               others.

It               indicates               a               failed               continuation               pattern               with               the               price               failing               to               reach               a               higher               high               or               lower               low               after               a               peak               and               stalls               near               the               peak               level               of               the               first               shoulder.

When               the               price               continues               and               breaks               through               the               support               from               the               first               shoulder,               a               trend               reversal               is               confirmed.
               Candlestick               Chart               Patterns               Conclusion
               These               five               simple               candlestick               formations               should               be               sufficient               to               cover               most               reversal               scenarios.

The               main               idea               is               to               not               get               overwhelm               by               the               patterns               and               just               sticking               to               trading               them               only.

It               provides               the               trader               an               idea               of               a               potential               trend               reversal               and               to               prepare               for               it               with               a               combination               of               signals               from               indicators               as               confirmation               to               trade               the               chart               pattern.
               Author:               Warren               Seah
               What               if               you               just               couldn't               trade               forex               effectively               with               a               day               time               job?
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Yes,               it               can               automate               your               personal               forex               system.

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