If you have covered all the fundamental elements of the Forex candlestick chart and know about them thoroughly, it is time for you to dive deeper. There are powerful candlestick patterns that depict a detailed picture of the market condition. Once you develop the ability to identify every single signal these patterns convey, you will feel a sense of authority in your trading approach. That is because you will be able to notice any subtle trends of the current market.
Powerful Candlestick Patterns
Hundreds of candlestick patterns have been detected, which imply different critical market conditions. Below, we will project light upon some of the most powerful patterns. These patterns are highly reliable, and they will infallibly provide you some short-term and long-term opportunities.
1. Evening Star Pattern
This pattern is formed with three candles. You will see a tall bullish bar that carries the movement to a unique high. You can call it a bearish reversal pattern that spawns at the pick of an uptrend. It indicates a slowly falling momentum before a downtrend starts to form.
You cannot just identify an Evening star pattern by observing three candles. You also have to understand the previous price-action and the point where this pattern appeared within the existing trend range. Visit the website of Saxo to learn more about the reversal pattern. You can also seek help from elite traders in Hong Kong to expand your knowledge of the candlestick pattern trading method.
For an evening star pattern, the market …