This is all natural. Rahul How can you say that? I can say that because I have been down that road. I have seen my trades after trades hit stop loss leaving my trading account balance getting eaten in front of me! It happenned months after months after months! But then I thought that it is time to find what's happenning wrong in my forex trades!
I knew I have to do some level of detailed analysis and come out with reasons why my trades are not going per my expectations. And I found the reason!! Yes, after a careful analysis that lasted entire week, I figured out the reason why the trades were not yielding profits for me -. You see, my analysis of the market used to be correct. I used to know whether the market is in uptrend or down trend and how strong the trend is. I used to check big picture and whole lot of things. But surprisingly, in lot of my trades my timing of opening the market used to be when the trend was about to end or just started reversing.
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Even more annoying was to find that in a lot of my winning trades, I used to suffer losses just because I did not know when to get out of the market. I knew there has to be some technical indicator that can tell me when to precisely enter or when to exit the forex trades. And I found one such exact technical indicator! Here Enters the mighty "Forex Candlesticks". I ran into Forex Candlestick. The one reliable indicator that can tell whole lot of things about the forex market everytime, precisely! Initially, when i started learning about candlesticks, I used to think, how can this candle shaped stick help me so much with my trading issues?
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I would like you to do a simple assignment. Here is something that I would like you to try -. Do you see what just happenned? Let me venture a guess - I am sure, this time your whole analysis would have changed and you would have started seeing the things much more clearer! The move starts to fizzle out as we see those two candles with small bodies. The bullish engulfing candle is our cue to sit up and pay attention, and sure enough, the market rallies over the next 24 hours. The Doji marks a time period in which the opening price and the closing price are the same or almost the same.

It can be a reliable indicator of a forthcoming reversal, or at least a stall in the current trend. It illustrates a matching of buying and selling power in the market. So, for example, if the market was previously heading in a strong uptrend, it can be significant to see sellers suddenly step in and equalise the buying strength.
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It makes sense to be on standby for a potential reversal as the bears put in their appearance. You might let the Doji put you on standby and actually enter your trade off the next bearish engulfing candle. That may just be the market churning its way through a choppy spell. B — The Bulls have another run to the upside but the bears have put them back in their place by the time this candle comes to a close. C — A last feeble push upwards is overwhelmed as the bears wade-in.
The bearish engulfing candle now becomes your confirming signal to go short sell. D — You can ride the wave down until a new Doji grabs your attention. A bit of cage rattling happens here from both sides. Buyers and sellers are both trying to get a toe hold but this bar closes at par. Weakening of the uptrend is evident. The body of the bearish candlestick engulfs the body of the previous bullish candlestick. Doji Star A Doji with small trading range gaps above the previous bullish candlestick.
Harami Cross A bearish Harami pattern discussed later appears.
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Advance Block Three consecutive bullish candlesticks. Each body is smaller than the previous day's body. It signals weakening of the uptrend. Two Crows A long bullish candlestick is followed by an upward gap and a bearish candlestick. The third bearish candlestick opens within the body of the previous candlestick and closes within the first day's body.
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Breakaway Long bullish candlestick is followed by a gap. The next three consecutive bullish candlesticks make new highs. Suddenly, a long bearish candlestick appears and closes inside the gap between the first two candlesticks. The body of the bearish candlestick is engulfed by the body of the previous bullish candlestick. Shooting Star Shooting Star is a candlestick with a small body, long upper shadow as compared to the body and very short or no lower shadow.
This implies that buyers cover their positions. Color of the Shooting Star is not important here. Hanging Man Hanging Man is a candlestick with a small body, long lower shadow as compared to the body and very short or no upper shadow. This implies that buyers can't push price higher. Color of the Hanging Man is not important here. Bearish continuation patterns Bearish continuation patterns signal that the established trend will continue. Falling Three Methods A long bearish candlestick is followed by some small candlesticks forming a brief uptrend that does not exceed the high of the first candlestick.
The fifth bearish candlestick closes at a new low. It confirms that the bearish mood has resumed. Three Line Strike Three consecutive bearish candlesticks, each closing at a new low, are followed by a bullish candlestick that opens at a new low and closes above the first day's open. Mat Hold A long bearish candlestick is followed by a gap and then by some small candlesticks forming a brief uptrend that does not exceed the high of the first candlestick. The fifth bearish candlestick gaps downward and closes at a new low.
The Heiken Ashi indicator is a popular tool that helps to identify the trend. As you can see, uptrend is overlaid with white candlesticks and downtrend is overlaid with red candlesticks. The advantage is that Heiken Ashi quickly responds to trend reversal. The color changes almost immediately.