If you are looking for ways to improve your Forex profits, I would recommend you to use Japanese candlesticks as a technical analysis to find the best entry and exit points. This article will provide a brief description about this trading tool, and describe what I learned from the Forex Candlesticks Made Easy guide.
1. What Are Japanese Candlesticks?
Candlesticks were first used by a Japanese trader Homma who used it in the futures market for rice contracts. It was said that candlestick trading never produces bad trades when used effectively with other analysis tools. Candlesticks provide traders with a much better visual analysis of the market condition, allowing the trader to better see the relationship between opening and closing prices.
The narrow line between the candlestick body is often called the wick, and represents the price range that the currency pair (or stock if used in the stock market) has traded in during the time period. The obvious visual is the red or green color of the candle’s body. If it is red, it would mean that prices closed below opening prices and vice versa for a green candle.
2. Has The Forex Candlesticks Made Easy Guide Been Helpful?
This guide is probably one of the most comprehensive and useful in terms of explaining how Japanese candlesticks should be used correctly for trading the Forex markets. With the skills I learned in this ebook, I am able to feel with a great degree of accuracy the direction of the market when the right candlesticks show up at support and resistance levels.
If you picked up the skills in the guide and combine it with other pattern analysis knowledge that you already have, it would provide a much higher degree of accuracy in your trades as you master the reversal and continuation patterns.