Sunday, September 24, 2017

Using Forex Candlestick Pattern To Tell The Trend

In today forex faq, we have a question from one of our fellow trader asking how to tell the trend using forex candlestick pattern.

Below is the question:

How to determine up trend or down trend in forex trading using candle stick pattern.

Frankly speaking, I only use the forex candlestick pattern to tell whether there is a reversal coming or there is a continuation pattern where I can continue to ride the trend.

As for the trend, I will suggest you to use the 200 EMA as a gauge. If it is sloping upward with steep gradient, it is in an uptrend. If it is sloping downward with steep gradient, it is in a down trend. If the 200 EMA is flat, it is a sign of consolidation.

As for the forex candlestick pattern, I will use them to tell reversal. Below are some reversal candlestick patterns:

Railway Track (Tweezer)

Double Top/Bottom

Head and Shoulder

As for the continuation pattern, it must comes with a strong movement and then the formation of the below patterns.

Symmetrical Triangle



The candlestick patterns serve as a pre-warning to traders telling us something is coming and therefore we have to prepare ourselves for it.

For those of you who are not using forex candlestick patterns in your trading, it is time for you to consider putting them into your trading plan.

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!