forex trading course (part 1)

By doing this, you avoid those moments where price moves so fast that it slices through support and resistance levels like a knife slicing through warm butter.

conservative way. In the aggressive way, you simply buy or sell whenever the price passes through a support or resistance zone with ease. In the conservative way, you wait for price to make a “pullback” to the broken support or resistance level and enter after price bounces.

While we briefly covered Japanese candlestick charting analysis in the previous lesson, we’ll now dig in a little and discuss them more in detail. Let’s do a quick review first.

Back in the day when Godzilla was still a cute little lizard, the Japanese created their own old school version of technical analysis to trade rice. That’s right,

A Westerner by the name of Steve Nison “discovered” this secret technique called “Japanese candlesticks”, learning it from a fellow Japanese broker. Steve researched, studied, lived, breathed, ate candlesticks, a

Slowly, this secret technique grew in popularity in the 90′s. To make a long story short, without Steve Nison, candlestick charts might have remained a buried secret. Steve Nison is Mr. Candlestick.

Japanese candlesticks can be used for any time frame, whether it be one day, one hour, 30-minutes – whatever you want! They are used to describe the price action during the given time frame.

Japanese candlesticks are formed using the open, high, low, and close of the chosen time period. close is above the open, then a hollow candlestick (usually displayed as white) is drawn.
If the close is below the open

The thin lines poking above and below the body display the high/low range and are called shadowsof the upper shadow is the “hig bottom of the

Just like humans, candlesticks have different body sizes. And when it comes to forex trading, there’s nothing naughtier than checking out the bodies of candlesticks!

ng bodies indicate strong buying or selling. The longer the body is, the more intense the buying or selling pressure. This means that either buyers or sellers were stronger and took control.

Short bodies imply very little buying or-selling activity. In street forex lingo, bulls mean buyers and bears mean sellers.

Long white Japanese candlesticks show strong buying pressure. The longer the white candlestick, the further the close is above the open.

prices increased considerably from open to close and buyers were aggressive. In other words, the bulls are kicking the bears’ butts big time!

Long black (filled) candlesticks show strong selling pressure. The longer the black Japanese candlestick, the further the close is below the open.