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Posts Tagged ‘Forex Reversal Strategy’

To become a profitable forex fx trader you need just a couple things. A rock-solid and verified fx day trading system, in addition to the dicipline to stick to it! Within this article we will talk about the function of fx reversal candle patterns. A strategy that has established it works consistantly for years, but ONLY when traded properly, and ONLY when traded with dicipline! Also we will talk about what candle patterns are most successful with equally important when to trade them.

First and foremost we will discuss what candle patterns turn out the best day trading setups. If you are not familiar with standard candle patterns then I advocate doing a bit of study to comprehend the terms better, as this is more focused in the direction of the above novice trader with atleast a foundation knowledge of key candle patterns. The best, and most time hardened candle patterns are the shooting star as well as the hammer reversal candles. These two candle patterns manufacture some of the most reliable reversals as well as trend continuation setups of all the candle formations

I have always said that each and every candle tells a story after that it is up to you the fx trader to be talented to interpret that story and trade with it profitably. Hammer and shooting star reversal candle patterns provide you the most information in my belief. They illustrate unmistakably that the forex market tested a high or low and got rejected which is our first sign that the fx market is going to potentially reverse. Always make certain that these reversal patterns are at a previously established area of support or resistance. Merely taking a trade on a shooting star or hammer candle formation that did not touch a zone of S/R decreases the prospect of a profitable trade dramatically!

A few additonal points to make your reversal candle pattern system more robust, is in the beginning getting in reversal candles only in the direction of the overall larger trend. For example if the market is trending up and after that short term moves down. Taking a buy at the bottom of that retracement, at an zone of proven support, and once a hammer candle formation closes, gives you the best probability of a excellent continuation day trade. This system is discussed throughly in a forex training video called Day Trading Forex – Intra Day Candle Formations which I highly suggest you watch.

Also, similar to any other fx trading methods make certain you only place trades during active periods of the trading day. In the Live Forex Trading Room we only take fx trades around the European and London open and the opening 3 hrs of the NY open. Putting on forex trades not during volitile periods of the trading day repeatedly results in many fakeouts and lack of momentum following a reversal candle formation. I hope the ideas in this article in addition to the forex strategy training video above, help you in your personal day trading and help you profit for years of trading to come!