Real-time Forex Day Trading Strategy – Trading Fx Reversal Candles
To turn into a lucrative fx day trader you need merely a few things. A rock-solid as well as verified fx day trading system, and the dicipline to stick to it! In this forex trading article we will talk about the function of forex reversal candle patterns. A method that has established it works consistantly for years, but ONLY if traded properly, and ONLY when traded along side dicipline! Also we will talk about what candle patterns are most effective and equally important at what time to trade them.
Initially we will discuss what candle patterns produce the best forex trading setups. If you do not understand traditional candle formations then I recommend doing a bit of research to understand the terms better, as this is more focused in the direction of the intermediate fx trader with atleast a foundation knowledge of essential candle patterns. The best, and most time weathered candle formations are the shooting star in addition to the hammer reversal candle pattern. These two candles generate some of the most consistant reversals as well as trend continuation setups of any candle formations
I’ve always said that every candle tells a story after that it’s up to you the forex day trader to be competent to understand that story then trade with it profitably. Hammer and shooting star reversal candle formations give you the most information in my belief. They demonstrate unmistakably that the forex market tested a high or low and got rejected which is the first indication that the market is going to possibly reverse. Always make sure that these reversal patterns are on a previously confirmed area of support or resistance. Merely entering a fx trade on a shooting star or hammer candle formation that didn’t touch a zone of S/R decreases the probability of a successful trade dramatically!
Some additonal factors to make your reversal candle formation method more strong, is in the beginning taking reversal candles only in the path of the overall larger trend. For instance if the fx market is trending up and then short term retraces down. Taking a buy at the bottom of that retracement, at an region of established support, and once a hammer candle pattern closes, offers a trader the greatest odds of a great continuation day trade. This system is covered throughly in a forex training video called Day Trading Forex – Intra Day Candle Formations which I extremely urge you view.
Furthermore, similar to most other forex day trading strategies be sure you only take trades during active periods of the day. In the Live Forex Trading Room we only take trades near the London and Eurpoean open as well as the opening 3 hours of the NY open. Putting on fx trades not during active periods of the trading day repeatedly causes numerous fakeouts in addition to lack of momentum following a reversal candle formation. I trust the ideas in this article as well as the fx strategy training video above, aid you in your own trading and help you profit for years of trading to come!