12 Candlestick Patterns You Need to Know

12 Candlestick Patterns You Need to Know

As a proficient trader, something that you need to know all about are candlestick patterns. Now, we already did an article on candlestick patterns yesterday, but today we are here to provide you with a more in depth guide on the various patterns that you might come across.

Yesterday, we did a more general article on Candlestick charts and patterns, but today we want to help you familiarize yourself with the various patterns that you might see on those charts. Remember folks, it is very important that you are able to identify the various candlestick patterns out there, because they each signify something slightly different, and they each allow you to trade in a slightly different manner.

Remember, it’s all about being able to make as much profit in as little time as possible, and candlestick patterns are in great way for doing this. Let’s get to it and provide you with a list of all of the most important Candlestick patterns that you need to know about.

Candlestick Patterns

A Brief Introduction to Candlestick Charts

Before we start talking about the most common Candlestick patterns that you need to be familiar with let’s just give you a quick crash course on Candlestick charts and patterns. So can you stick charts are a visual representation of the emotion and sentiment that is currently happening in the market. In other words, these Candlestick charts provide you with a really easy way to see what a market trend is like, and moreover if there is a trend reversal on the horizon.

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The two most important components of any candle stick chart are the bodies and the Wicks of the candles. If you can read the Wicks and the bodies of the candles in relation to the other candles on the chart, then you will start seeing these patterns, and based on these patterns you can then trade in specific ways. let’s move on and take a look at the most common Candlestick patterns that you may be faced with when taking a look at a Candlestick chart.

 

Bullish Candlestick Patterns

In case you didn’t know a bullish market is one where the prices are expected to rise. Bullish candlestick patterns may appear after a market downtrend, and they generally signal a reversal of the price movement from a downtrend to and uptrend. There are a variety of bullish candlestick patterns that you should absolutely know.

The Hammer

The hammer pattern features a green candle with short body and a long lower wick, and this is found at the bottom of a downtrend, with other green candles generally following. A hammer usually indicates that the word selling pressure throughout the day, but ultimately a strong buying pressure drove the price direction back up. Generally speaking, the color of the body of this candle can vary, but green hammers do usually indicate that there is a stronger bold market than red hammers.

Candlestick Patterns

The Inverse Hammer

A similar bullish candlestick pattern for the one we just looked at, the inverted hammer, is one that features a green candle that has a short body and a very long upper wick, along with a short lower wick. the inverse hammer pattern indicates that there is strong buying pressure followed by selling pressure that wasn’t strong enough to drive the market price down. This particular Candlestick pattern suggests that the buyers will soon again had control of the market.

Inverted Hammer

The Piercing Line

The piercing line is a very simple candlestick pattern that features just two candles, and this is made up out of one long red candle that is then followed by a long green candle. There’s usually also a pretty large gap between the closing price of the first candlestick and the opening of the next green candlestick. This particular pattern indicates that there is strong buying pressure, because the pressure is pushed upwards or above the mid price of the previous day.

Piercing Line

Bullish Engulfing

Another common bullish candlestick pattern is the bullish engulfing pattern, and this is formed by Two’s candlesticks. The first candlestick generally has a short red body that is completely engulfed by a much larger green candle. Although the second day generally opens lower than the first day, the bullish market then pushes the price upwards, which results in a win for the buyers.

Candlestick Patterns

Three White Soldiers

Here we have a very special candlestick pattern, one that keeps occurs over the period of three days. this particular pattern consists of three long green candles, all of which have small Wicks, and they all open and close progressively higher than the previous day. This is one of the strongest bullish candlestick patterns out there, and it occurs after a downtrend, and it shows that there is a steady advance of pressure from the buyers.

Three White Soldiers Pattern

The Morning Star

The 6th and final bullish candlestick pattern that we want to take a look at is the Morning star, and this is generally seen as a big sign of hope in a bleak market downtrend. This is a pattern that consists of three separate sticks, a short bodied candle that sits between a long red candle and a long green candle.

Usually, that star will not have an overlap with the longer bodies, because the market gaps both on open and close. Is generally signals that the selling pressure from the first date is reducing, and that the bull market is on the horizon.

Bearish Candlestick Patterns

Now that we have figured out what the most common bullish candlestick patterns aren’t, let’s take a closer look at some of the most common bearish candlestick patterns. Remember that these usually happen after a market uptrend, and signified that the market downtrend is on horizon.

The Shooting Star

The shooting star pattern actually has the same shape as the inverted hammer, but it’s a red candle instead of a green candle, and it’s formed in an uptrend, instead of a downtrend. This pattern features a small lower body, and along upper wick. Generally, you will see the market have a gap that is slightly higher on opening, and will then rally to an intraday high, before closing at a price that is just above the open, just like a star that is falling to the ground.

Candlestick Patterns

The Hanging Man

The next candlestick pattern that you should know about is the hanging man, and this is the bearish equivalent of the hammer. It has the same shape as the hammer but it forms at the end of an uptrend. This pattern indicates that there was significant selling during the day, but that buyers were then able to push the price back up. This large sell off is usually seen as a sign that the bulls are losing control of the market.

The Evening Star

One of the other most important bearish candlestick patterns that you need to know about is the evening star. This is a 3 candlestick pattern and it is the equivalent of the bullish Morningstar. This is a candle that is formed when there is a short candle that is stuck between a long green candle and a large red candle. Is generally indicates that there is a reversal of the uptrend, and that it’s particularly strong when the third candle erases all of the gains made by the first candle.

Bearish Engulfing

This particular pattern always happens at the end of an uptrend, and it is characterized by a first candle that has a small green body that is then completely engulfed by a long red candle. This generally signifies that there is a peak or a slowdown of the price movement, and that there is an impending downturn on the horizon. The lower the second candle goes, the stronger that new trend is going to be.

Candlestick Patterns

Dark Cloud Cover

The next bearish candlestick pattern that needs to know about is a dark cloud cover pattern. Here you will see two candlesticks, a red one that opens above the previous green body, and closes below the midpoint of the previous green candle. This signals that the bears have taken over the market, and the market and that the price is being pushed at lower. If the wicks of the candles are very short, it suggests that the next downtrend is going to be very strong.

Three Black Crows

The last candlestick pattern that we want to look at today is the three black crows pattern, and this consists of three consecutive long red candles, that have short or no wicks at all. Each of the sessions opens at a very similar price to the previous day, but the selling pressure pushes the price lower and lower with each of the next closes. This is generally seen as an interpretation that a bearish downtrend is about to start.

Candlestick Patterns

Candlestick Patterns – Final Thoughts

The bottom line here is that if you are able to identify these 12 candle stick patterns that we have talked about today, then your chances of becoming a profitable trader increase drastically.

If you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.  

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The Candlestick Patterns Trading Guide

The Candlestick Patterns Trading Guide

If you are just getting into the world of forex trading, then one of the things that you need to know all about are candlestick patterns. Candlestick patterns originated in the country of Japan well over 100 years ago before the western style bar and point-and-figure charts were invented.

In fact, these candlestick patterns were first invented in the 1700s by a Japanese man who saw that there was a link between price and the supply and demand of rice. One of the things that candlestick patterns aim to extrapolate is what the emotions of traders are like. anyway, we will get more into explaining these Candlestick patterns further below.

The point here is that Candlestick patterns are great analysis tools that you can use to place either buy or sell trades, as they show you whether or not there is bullish or bearish momentum in the market. What we are going to do today is to take a closer look at Candlestick patterns and see exactly what they are, how they work, and what the most important ones are that you need to know.

Candlestick Patterns

What are Candlestick Patterns?

In terms of what candlestick patterns actually are, they are at special type of chart that are used by many different traders to determine the possible price movements based on those past patterns. Candlestick patterns are extremely useful for trading because they provide you with a lot of information.

Technically speaking they provide you with four different pieces of information, including the open, that close, the high, and the low of a specific asset throughout a certain period of time like a trader has specified.

Candlestick Chart

The fact of the matter is that trading is more often than not dictated by emotion, even though it shouldn’t be, and this emotion can actually be read in those candlestick patterns. Due to the fact that these Candlestick patterns provide us with such a plethora of information, they are often seen as some of the most useful tools in all of trading.

Now, what can get a bit confusing is being able to identify a variety of Candlestick patterns as well as what they need. as you are about to find out further below, there are many different Candlestick patterns, both bearish and bullish comment and they all tell you something different. The trick is of course to be able to read these patterns and to therefore place trades based on what those patterns tell you.

The Components of Candlesticks

Something else that is definitely important for you to know here is what the different components of candlesticks are. So, once again, candlestick patterns show you the markets open, the high, low, and the closing price for the day. Now, a candlestick has a wide part, which is called the real body.

The real body represents the range of price between the open and the close for the day of trading. If this real body is filled in or totally black, it indicates that the close was lower than the open. However, if the real body is empty that means that the close was higher than the open. Moreover, the wicks of the candles indicate the low price of the day and the high price of the day.

What you need to know here is that when it comes to forex, stock market, commodities trading, and more, the fact of the matter is that these candlestick charts do provide you with more or less the same information as bar charts, but most people find that candlestick patterns are much easier to read than bar charts. In terms of identifying the candles, do keep in mind that most people will shade a down candle red instead of black, and up candles are often shaded green as opposed to white.

Candlestick Patterns

Pros & Cons of Candlestick Charts

Just like everything in trading, Candlestick charts do have both their pros and cons, so let’s take a look.

Pros

  • One big advantage is that most indicators work really well with this type of chart.
  • Candlestick patterns are very aesthetically pleasing and they’re easy to read. this is a very beginner friendly way of trading.
  • What also stands out is that candlestick charts are infinitely customizable, and a single candlestick can represent anytime period of any asset.
  • Candlestick patterns are also extremely accurate because they provide you with so many different types of information, including the highs, lows, opens, and closes inside a given time frame.
  • This is one of the best possible tools for identifying market sentiment and who is in control of the market.

Cons

  • One small disadvantage here is that candlestick charts do sometimes have gaps in them where one candle closes at a certain level but the following candle opens at a different level.
  • These patterns do also have a tendency to cause what is called apophenia, which is a cognitive bias where we see patterns and things that are actually random. Some people may actually see patterns where none exist.
  • Many people make the mistake of thinking that candlestick patterns are all that they need in order to trade accurately. The fact of the matter is that price data alone usually isn’t enough to provide you with enough reliable information to place trades. In other words, do so you have to use indicators.

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Some Basic Candlestick Patterns

What we want to do now is to go over some of the most basic Candlestick patterns out there, and exactly what they needed. Remember folks, the trick to candlestick trading is that you actually need to be able to identify the various patterns that you may see within your charts.

Candlestick Patterns

Bearish Engulfing Pattern

One of the most basic Candlesticks that you may see is called the bearish engulfing pattern. The type of pattern that develops in an uptrend when there are more sellers than buyers. In this pattern, you will see a long red real body that engulfs a smaller green real body. This is a pattern that indicates that the sellers are back in control and the price could continue its decline.

Bullish Engulfing Pattern

On the other hand, we have the bullish engulfing pattern, which is when the buyers outnumber the sellers. In terms of the candlestick pattern, you will see a long green real body that engulfs a small red real body. This shows that the bulls have established a certain amount of control, and the price could continue to go up.

Candlestick Patterns – The Bottom Line

Today, we have provided you with a basic tutorial on candlesticks, but the fact of the matter is that there are of course dozens, if not hundreds of different patterns out there. Stay tuned and come back tomorrow, because we will be doing a part 2, where we will be talking about all of the most common candlestick patterns that you may encounter, and exactly what they mean.

If you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.  

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Using the Stochastic Oscillator the Right Way

Using the Stochastic Oscillator the Right Way

If you are just getting into the world of Forex trading, then there are quite a few important things that you need to know. Now, when it comes to being able to find the best possible trades, what you need to know all about are indicators. What we are here to talk about today is the Stochastic indicator, otherwise known as the stochastic oscillator.

When it comes down to it, this stochastic indicator is hands down on the best indicators that you can use. This indicator can actually be used in multiple ways. Now, the problem with the stochastic oscillator is that many people just don’t know how to use it. Today, we are here to help solve this problem.

What we are here to do today is to take a closer look at one of Andrew’s most popular trading guides on Andrew’s Trading Channel. Today’s article is going to feature a combination of stochastic oscillator tips that Andrew provides in his video, as well as some of the most basic and important info that you need to know about it. Let’s get right to it and explain what the stochastic oscillator is, and how to use it the right way.

What is the Stochastic Indicator?

First and foremost, the stochastic indicator is a type of momentum indicator. In other words, this indicator provides you with valuable information about the strength of a certain trend. This is a type of indicator that was first developed in the 1950s by a man named George Lane.

Technically speaking, this indicator measures the relationship between an asset’s closing price and its price range over a specific period of time. The fact of the matter is that to this day, the stochastic oscillator is by far one of the most popular momentum indicators out there.

The reason for this is because it is very easy to read and to use, plus it is also very accurate in terms of indicating whether you should place a buy trade or a sell trade. Therefore, it is in part also a trend indicator, because after all, if an indicator tells you how strong a trend is, then it also tells you whether or not there is a trend in the first place.

What Does it Tell You?

Let’s provide you with some more detailed information on how exactly this stochastic oscillator works and what it tells you. One of the most important things to note here is that this indicator is range bound. The value it will show you is always going to be between 0 and 100. One of the best things about it is that it is ideal for telling you if a security is overbought or oversold.

Generally speaking, if the reading is at 80 or over, it indicates that something is overbought. If the stochastic indicator provides you with a value of 20 or below, it indicates that a security is oversold. Although this is a good indication of the momentum of a trend, it’s not always 100%. Securities can sometimes remain overbought or oversold, while also continuing with the same trend.

Another big benefit of this particular indicator is that it is much easier to see hidden divergences with it than with most other indicators. The other important thing to know here is that charting the stochastic oscillator usually consists of two lines. One line is the realtime value of the oscillator, while the second line represents the three day simple moving average. Now, the most important thing to know is that when these two lines cross, it signals that there is a trend reversal on the horizon.

Calculating the Stochastic Oscillator

Something else that you need to know in order to actually put this indicator to use, is how to calculate it. The formula for this indicator is as follows.

Stochastic Oscillator

Here, C represents the most recent closing price, L14 represents the lowest trading price in the last 14 days, H14 represents the highest price traded at over the last 14 days, and %K represents the current value of the stochastic indicator.

Drawbacks

The stochastic oscillator does have a couple of drawbacks that you certainly need to know about, so let’s take a quick look at these.

One of the drawbacks here is that it may sometimes produce false signals. In other words, it may tell you that there is a reversal on the horizon, when this is actually not the case at all, which can therefore lead to a losing trade. If a market is very volatile, the chances of this occurring are fairly high.

In order to combat this issue, one good thing that you can do is to use the price trend as a filter. In other words, if signals from your stochastic oscillator go in the same direction as a trend, then it is generally a safe trade. Also keep in mind that this indicator is not the best to use in a sideways trending market.

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Tips for Success When Using the Stochastic Oscillator

Right now, we want to finish things off by providing you with some of the most important tips for success to follow when trading with the Stochastic oscillator.

  • When trading with the stochastic oscillator, one of the most important things to keep in mind is that if you use lower settings, it will generally provide you with more signals.
  • The next most important tip to follow here is that when using the stochastic indicator on your chart, the best settings to use are usually the default settings, which are 14, 3, and 3.
  • What you also need to realize here is that if the market is trending strongly, you really want to use a pattern trading strategy for the best chances of success.

Stochastic Oscillator

Using the Stochastic Indicator – Final Thoughts

When all has been said and done, we definitely recommend watching full video that Andrew has uploaded about the correct way to use the stochastic indicator. The bottom line is that this is an excellent momentum indicator that you should absolutely master.

If you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.  

CLICK BELOW TO JOIN INCOME MENTOR BOX AND START MAKING REAL PROFITS! 

How to Start Forex Trading for Beginners

How to Start Forex Trading for Beginners

If you are a beginner who is just getting into the world of forex trading, there are a lot of things that you need to learn in order to be successful. The fact of the matter is that forex trading is not easy, not in the least. It takes many different skill sets in order to be a successful trader in the world of foreign currencies.

Now, when you start trading, chances are that you probably don’t have very much capital despair. This means that every action you take is extremely important because the less money you have the bigger of an effect of losing or a winning trade has on your overall balance.

If you are just somebody who’s just starting trading, you probably have no idea what you are doing, and you have no idea where to start either. Today, we are here to look at one specific video that Andrew has uploaded on his trading channel, Andrew’s Trading Channel. This video is all about how to start forex trading for beginners, especially for those who don’t really have any money. Let’s get to it and teach you the fundamentals that you need to know as a beginner to start forex trading successfully.

How to Start Forex Trading

How to Start Forex Trading for Beginners

What we want to do right now is to talk about the tips and rules that Andrew provided you within this video, all of which are designed to help you start trading Forex as a beginner. We did expand on Andrew’s original video, but with that being said, all of the rules and tips that we are about to share are equally as important. Let’s go through a step-by-step tutorial on how to start trading forex successfully.

It All Starts with an Education

If you plan on being a successful forex trader, then perhaps the most important thing that you absolutely need to do is to go get yourself a forex trading education. The fact of the matter is that there are many different assets and things about forex trading that you need to know in order to be successful.

You need to know all about trading platforms, indicators, charting solutions, trading strategies, technical analysis, fundamental analysis, and much more. The fact of the matter is that it can take many weeks or even months to develop a full skill set that will allow you to be a successful foreign currency trader.

What we recommend doing is taking a look at the Income Mentor Box Day Trading Academy, which is at this time one of the most popular forex trading schools out there. Yes, this trading school is led and taught by none other than Andrew himself, and quite frankly, there is no one that we would rather be learning from than him.

Andrew is a fantastic trader and an even better teacher. The bottom line here is that if you want a chance of being successful in the world of foreign currency trading, then you absolutely need to have a good education.

Start Forex Trading

Try a Demo Account

If you want to start trading for it successfully, then another huge tip that you need to follow is to start using a demo account. Of course, when you first start trading, you are going to lose some trades. this is absolutely normal, especially as a new day trader who has never traded before. There is quite a bit of a learning curve involved here, and it will take a while for you to get over it.

However, just because there is a learning curve and just because you need to practice doesn’t mean that you need to risk real money. The reality is that every good trading platform and broker should come with a demo account option, which is a type of trading account that simulates real market conditions, and also uses real current market conditions, thus allowing you to trade without having to risk any real money.

It’s like a practice version or a trial version of the real thing, but one that is fully functional, and allows you to practice the most important skills. Never start trading with real money before you have spent at least a few days trading with some kind of demo account.

Practice Your Fundamentals

Another thing that you should familiar eyes yourself with if you plan to start forex trading, is fundamental news analysis. Fundamental analysis is one of the leading ways in which forex traders determine which trades to place at any given time.

Fundamental analysis involves analyzing various news events that are related to specific companies, national currencies, or companies, all of which can happen effect on the value of forex currency pairs, or on other assets as well.

You need to be able to use those economic calendars on investing.com, and you need to know what three bull news is all about too. The bottom line here is that if you want to start forex trading, then you absolutely need to know what fundamental analysis is and how to perform it as well.

How to Start Forex Trading

Practice Technical Analysis

if you are planning to start forex trading, then another very important thing that you need to be able to do is to perform technical analysis. Of course, there are literally hundreds of different indicators out there, and they all work in a slightly different way. This means that there are quite literally thousands of different trading strategies that you can utilize.

The bottom line here is that you need to familiarize yourself with the various types of indicators out there, which indicators work best for what trading situations, and what some of the best trading strategies out there are. If you already have a good trading strategy under your belt, your starting forex trading is going to be much smoother.

Practice Makes Perfect

In order to start forex trading successfully, the final recommendation that we want to leave you with today is that you should practice your trading skills for at least 21 days before you start trading with real money.

You can trade either on paper or you can use a demo account, but the bottom line is that you should find yourself being relatively successful when trading with fake money before you start trading with the real thing. There is absolutely no point to start forex trading with real money if you haven’t even been successful with fake demo money yet.

 

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Start Forex Trading Today – Final Thoughts

If you follow the five steps that we outlined above, then your start to Forex trading should be quite smooth and successful. Remember folks, to start Forex trading successfully, having a good foundation of knowledge under your belt is crucial. 

If you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.  

CLICK BELOW TO JOIN INCOME MENTOR BOX AND START MAKING REAL PROFITS! 

Profitable Forex Scalping on Your Phone

Profitable Forex Scalping on Your Phone

If you plan on being a profitable trader, and one of the things that you absolutely need to learn all about is forex scalping. Moreover, today we are here not only to talk about forex scalping, but also about one of the best scalping strategies out there, mainly one that involves Fibonacci retracements.

Today we’re going to teach you one of Andrew’s best trading strategies, a profitable forex scalping strategy that you can execute on your mobile device. With this particular forex scalping strategy, you can make well over $300 per day using nothing but your mobile phone.

forex scalping - fibonacci

What is Forex Scalping

Before we can get into talking about Andrews best forex scalping strategy using Fibonacci retracements, it’s probably a good idea for us to explain to you exactly what forex scalping is. For those of you who don’t know what forex scalping is, this is a very specific type of trading that involves utilizing very short term trades in order to collect profits from the market.

When it comes to Forex scalping, traders will open positions in the markets and then close those positions within a very short amount of time, often within just mere minutes, or sometimes within mere seconds. The goal of forex scalping is to generate very small profits, but to generate a whole lot of them on a daily basis, with the main goal of minimizing risk while maximizing profitability.

Moreover, keep in mind that forex scalping is a type of day trading or intraday trading, as the trades never last more than a full day, and realistically, they don’t even last for a full hour. It’s all about generating lots of small profits over the course of a comma with the end goal being to accumulate a substantial profit at the end of every day.

forex scalping

 

Pros & Cons of Forex Scalping

Just as is the case with any trading strategy out there, forex scalping does have both its advantages and disadvantages, so let’s take a look at exactly what these are right now.

Pros

  • One big advantage that you get with Forex scalping is that you can bring in regular profits on a daily basis, unlike other strategies where it can take days or even weeks before you make a profit.
  • Another thing that is really beneficial about this type of trading is that you benefit from having a very low risk level per trade. this is because each trade features only a very small position in relation to the overall size of the total trading account. It’s all about only risking very small amounts of money.
  • What’s also nice about this type of trading is that it really doesn’t take much market movement in order for you to make a profit. You only need the markets move a couple of pips in order to make a profit.

Cons

  • One of the major drawbacks with this type of trading is that it can be very difficult to predict what the market will do on a minute to minute basis, which is of course necessary when it comes to super short term forex scalping. However, this is where Andrews Fibonacci retracement forex scalping strategy comes into play.
  • The other slight disadvantage that you get with this type of trading is that you have to be an extremely consistent winner in order to make profits. When trades are this small, your winter loss ratio must be excellent.

Andrew’s Profitable Forex Scalping Strategy for Mobile Devices

OK, so we honestly don’t want to get too deep into explaining this video using our words, because it is a somewhat complicated strategy to utilize, and therefore, it is best for you to learn it by actually watching the video itself.

Have you will see from the video Andrew uses a series of techniques that involved using Fibonacci retracements in order to find the best entry points into trades for forex scalping. For those of you who don’t know what fibonacci retracements are, is a method of technical analysis that helps to determine support and resistance levels. It’s named after the Fibonacci sequence of numbers, whose ratios provide price levels to which markets tend to retrace after a portion of a move, before that same trend will continue in its original direction.

We would usually provide you with step-by-step instructions on exactly how to utilize the strategies that Andrew discusses in his videos, but this one is slightly complicated, and you would benefit the most from actually just watching the whole video, because Andrew does everything live on screen. However, as you will be able to see from the video, Andrew is able to engage in Forex trading in a very reliable and accurate way, and it’s all thanks to these Fibonacci retracements.

Remember folks, this particular strategy that involves using support and resistance levels is designed to provide you with the maximum level of reliability, or in other words it’s designed to help minimize the level of risk that you have to engage in one trading.

As you can see from the video, as long as you follow all of the tips that Andrew provides you with, and as long as you follow his strategy very closely, it is more than possible to make $300 per day, or even more, using nothing but your mobile phone, a trading system, and some Fibonacci retracements. When it comes to beginner friendly forest scalping strategies that are easy to master, this is definitely one of the best ones out there. It’s safe, reliable, accurate, and profitable too.

 

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Easy Forex Scalping on Your Phone – Conclusion

If you plan on becoming a profitable forex trader, and you are just a beginner who wants to minimize your level of risk, then this particular forex scalping strategy that involves Fibonacci retracement, is definitely a good way to go with.

That being said, Andrew has plenty of trading videos and guides located on his YouTube channel, and if you are looking for some of the best trading strategies out there, besides this one, then we definitely recommend checking out this channel.

If you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.  

CLICK BELOW TO JOIN INCOME MENTOR BOX AND START MAKING REAL PROFITS! 

Best Exponential Moving Average Scalping Strategy

Best Exponential Moving Average Scalping Strategy

If you want to make profits in the world of Forex, and you want to make them today, then this five minute exponential moving average scalping strategy is for you.

Today, we are here to explain what is easily one of the most effective and beginner friendly trading strategies out there, the 3 EMA strategy for Forex scalping.

Today, you are going to learn all about moving averages, and we’re also going to teach you one of the best 5 minute scalping strategies that uses 3 exponential moving average lines to produce fast and reliable profits.

What is an Exponential Moving Average?

Before we can get to talking about Andy’s best 3 EMA trading strategy for Forex scalping, you first need to know what an EMA or exponential moving average is.

So, first off, a moving average or a simple moving average is a technical analysis tool used in many types of trading.

A moving average is calculated to identify the trend direction of a stock, currency pair, security, or anything else in between.

With a simple moving average, the closing prices of a security are added together and then divided by the number of closing prices (or periods) that were added together, thus providing you with a simple average of the closing prices over a given period.

Well, the EMA or exponential moving average places much more weight on the most recent prices used in the equation, thus being much more responsive and providing much more accurate signals for short term trading.

Exponential Moving Average

 

What is Forex Scalping?

Just so you are clear as to what this trading strategy is all about, when it comes to scalping, this is a specific type of day trading. Keep in mind that day trading or intraday trading refers to a style of trading where trades are open for a day or less. Now, when it comes to scalping, this is a very fast style of trading where traders use very short timeframes, usually no longer than 15 minutes.

In terms of Andy’s 3 exponential moving average scalping strategy, the timeframe he uses is 5 minutes. What you need to know here is that if you perform scalping trading the right way, you do stand to gain a whole lot of profits. It’s all about making a lot of small profits that add up to substantial gains over the course of a day. If done properly, this 3 EMA strategy will allow you to trade with minimal risk and maximum profit potential.

 

Best Exponential Moving Average Scalping Strategy

Ok, so what we are here to do right now is to take a closer look at the best five minute exponential moving average Forex scalping strategy that you can use in order to make consistent profits in a very short amount of time. As you will see from the video that we have included here, which shows you Andrew trading and profiting with this exact same trading strategy, if you can follow the simple tips and rules that he provides you with, you should be able to make some pretty decent profits no doubt. Keep in mind that you can use this strategy for any broker and trading platform.

Ok, so the first thing that you need to know here is that this is a 3 EMA strategy, or in other words, to make this strategy function, you need to have three exponential moving average lines. So, within your trading platform, go to the indicators section and select the EMA. Click on it three times in order to add three exponential moving average lines to your chart.

The next thing that you need to do is to edit all of your EMA lines. Go to their individual settings, and set the first one to input 21 and close 0, the second to input 9 and close 0, and the third line set to input 13 and close 0. Moreover, what you also need to make sure of here is that you are using a 5 minute chart, as this strategy will really only work for a five minute timeframe. If you use charts that have longer or shorter timeframes, you will get false signals.

exponential moving average

Now, in terms of what you are looking for on your chart, you are looking for areas where the candlesticks do not touch your exponential moving average lines for at least 30 or 40 minutes. When the candlesticks are not touching the 3 EMA lines, what you are waiting for is the first candle to touch the EMA (any of the three lines) and when it does, count backwards 5 candlesticks, and out of those 5, look for the highest candle and the lowest candle.

As you can see from the video, these candles will then provide you with your entry into a trade, which in the case of the video example is a buy trade. In an upward trend, you are looking for the highest point in those 5 candles, and that will be your entry into a buy trade (when there is upward momentum). As Andrew notes in the video, you want to trade with the trend, and if you see a trend with strong momentum, then you really want to follow that trade.

Now comes the part where you will actually make money, exiting the trade. So, what you need to do here is to exit the trade at the next resistance level (if it was a buy trade) or exit the trade at the next support level (if it was a sell trade). As far as this exponential moving average Forex scalping strategy goes, this is more or less everything you need to know in order to make profits. If you are still confused, we recommend watching the tutorial video once more, as Andrew does show everything in great detail.

 

The Best 3 Exponential Moving Average Strategy – Final Thoughts

There you have it folks, the best 3 EMA or exponential moving average scalping strategy that can help you make quick, easy, and reliable profits when trading Forex.

If you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.  

CLICK BELOW TO JOIN INCOME MENTOR BOX AND START MAKING REAL PROFITS! 

The Best Trend Indicators

The Best Trend Indicators

As a newbie trader one of the most important things that you will need to learn is exactly how to identify trends, and how to identify the direction of a trend. If you as a newbie trader learn how to identify the direction of trends, your chances of being successful in the world of trading greatly increase. Now, what is important to note is that in order to identify a trend and the direction of the trend, you should be using the best trend indicators out there, and yes this is in part what we are here to discuss today.  

However the problem when it comes to identifying trends and their directions is that one type of trader might see an uptrend whereas another type of trader might see a downtrend. a daily chart could look like there is an uptrend occurring, whereas an hourly chart could look like there is a downtrend occurring. Let’s get right to it and take a look at some of the best trend indicators out there, as well as how to use them, and what you need to avoid doing in order to make money when trading.

Trend

Identifying a Trend

One of the important things to note here is that a trend can look more like an illusion than anything else. The reason we say that a trend looks like an illusion is because depending on what your time frame is like, a trend can look very different. For instance, if you are looking at a 5 minute chart or a 15 minute chart it could appear as though there is a trend in the upward direction.

However, if you look at the daily chart for that very same asset, it might appear as though there is a downtrend occurring. the bottom line here is that when it comes to trends and trend indicators, it really depends on what kind of time frame you are using.

For instance, if you are a day trader, you should be using 30 minute timeframes and lower. As a swing trader you should be looking at one hour timeframes and four hour timeframes, and everything in between. If you are a position trader then you should be looking at 4 hour timeframes and above.

Using Price Action to Identify Trend Direction

Price action is all about reading the structure of a market, the momentum of a trend, and the sentiment to identify trading opportunities. In terms of trading, price action is one of the most important things that you need to learn because it provides you with extremely valuable insight to the market that you are currently trading in. Price action can tell you where traders are placing their stops and when new traders will enter the market.

There are three things to remember when it comes to price action, including that an uptrend consists of higher highs and lows, that a downtrend consists of lower highs and lows, and that arranges contained between the lows and the highs. with all that being said, identifying the direction of a trend when candle sticks are going all over the place can be difficult, so in the next section we’re going to learn how to identify a trend without using candle sticks.

Trend

Identifying Trend Directions Without Candlesticks

When there are tons of candle sticks with really long wet Wicks facing in all sorts of directions, things can be really messy, and it can make it hard for newbie traders to identify the direction of the trend. The simple solution to this problem is to use a line chart. For those of you who don’t know what a line track is, it is a chart that takes the price at the close and then connects closing prices together via line.

This takes the form of a squiggly on your chart that is much easier to read than those candle sticks. It’s pretty simple to read because if the line points higher than there is an uptrend, and if the line points lower than there is downtrend, and if the line is flat then it is arranged. However, with that being said the line tribe only considers the closing price, and that means that you won’t know what the high and low of a specific candle is, and this can be problematic. for identifying entries and exits using candle sticks or bar charts is best.

Using Moving Averages to Identify Trends

For those of you who don’t know, moving average is an indicator that summarizes the past prices, and is then plotted on your chart as a line. Sure, the moving average is a lagging indicator, but it’s not totally useless because it can help you identify the direction of a trend. a very simple technique to use is this, if the price is above the 200 MA line then there is a long uptrend but if the price is below the 200 MA line then there is a long downtrend.

You can also use a shorter term moving average, for instance if there is a strong trend the price will usually stay above the 20 ma line but in a healthy trend the price usually stays above the 50 MA line. Keep in mind that the moving average works best in a trending market. However if there is a range, then the moving average does not work very well.

Trend MA

Using Trend Lines to identify Trends

A trendline is a specific type of tool that you can draw on your charts, and it helps you identify both the strength and direction of a trend. When it comes to drawing trendlines, what you need to do is to look for at least two swing points, and then connect the swing points using a trend line, and then get as many touches on the trendline as humanly possible.

In terms of interpreting a trend line, if the line points higher than it is an uptrend, and if the line points lower than there is a downtrend. What you also need to pay attention to here is the angle of the trend line because the steeper the trendline is the stronger the trend is, and the flattered the line is the weaker the trend.

Trend Trendlines

Trends & Trend Indicators – Final Thoughts

Now that you know what the four best types of trend indicators out there are, you can start easily identifying both the direction and the strength of a trend, with the hopes of you making consistent profits on a daily basis.

If you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.  

CLICK BELOW TO JOIN INCOME MENTOR BOX AND START MAKING REAL PROFITS! 

Things that Professional Traders Do Well

Things that Professional Traders Do Well

If you are just getting into trading, whether it be Forex trading, crypto, currency trading, the stock market or anything in between, the fact of the matter is that if you are a beginner, you probably don’t know how to trade. Of course, getting a good trading education is going to help a whole lot, but with that being said, no matter what kind of education you have, there are always things that professional traders do that newbies don’t.

In other words, what we are here to talk about today are the things that professional traders do very well. The things that professional traders do in order to profit. Of course, making profits is a big part of the equation, but minimizing risk is another part. As somebody who is just getting into the world of trading, there are many different tips and rules that you need to follow in order to be profitable and successful. Today, we’re here to talk about some of the things that professional traders do to make money, things that losers often forget to do.

professional traders

Things That Make Money for Professional Traders

Right now, we want to talk about some of the most crucial things that you as a trader need to do in order to be profitable. These are all things that professional traders do on a daily basis.

professional traders

Be Independent

One of the absolute worst things that you could possibly do in trading is to not be independent. There are all too many newbies out there who will go to various social media platforms, forums, and other unreliable sources of information. For tips and advice on trading. Most people will ask simple questions that can be answered through nothing more than a bit of research and testing. A lot of people will ask what is the best of this for that and so on and so forth.

You should not be asking what or when, but you should be asking why the fact of the matter is that there is no best trading strategy for any given situation, but a certain strategy may be best for a given situation based on a variety of factors. Therefore, you always need to be asking yourself why a specific trading strategy works or why a specific event occurred. You need to be able to think independently to create your own hypothesis and to test them by yourself as well.

You Need to be Willing to Put in the Work

One thing that professional traders do very well is to put in the required work, especially when it comes to testing out various trading strategies. For instance, one thing that you might ask yourself is whether a 10 week breakout or a 50 week breakout is better in terms of your returns relative to the risk. A lot of newbie traders might be tempted to just go online and type this question into Google.

However, the answers you get are going to be extremely varied depending on who wrote them and what situation they are talking about. Therefore what you need to be able to do is to go do some back testing. You need to be able to analyze both of those time periods for a variety of stocks and then come to your own conclusion. You have to get your hands dirty and be willing to do the work on your own, always relying on others for answers and information just isn’t going to work over the long run.

Managing Expectations

Yet another thing that professional traders do very well is to manage their expectations. Many newbie traders expect that they will be able to make a huge profit every single day and to be able to grow their trading account to 7 or even eight figures within just a couple of months. However, the unfortunate reality is that this just is not how life works.

When it comes to trading, sure you might get lucky, but the simple reality is that 99.9% of traders will completely bottom up and blow out their accounts by attempting to do this. Remember, trading is a marathon, not a sprint, and this means that you need to be calculated and you need to take your time. The simple fact of the matter is that you’re just not going to make profits every single day.

Managing Risk

The next thing that professional traders do extremely well is to manage risk. What you need to know here is that no range sustains all of the time that no market trends all of the time, and that no strategy works all of the time, and therefore you need to be able to manage your risk appropriately.

This means that you need to know how to size your positions, how to use reduced leverage, and how to use stop loss.

Moreover, you also need to consider how much of your total trading capital that you want to invest for trade. Most professional traders will never invest more than two percent of their trading capital into a single trade. Therefore, if you lose a trade, at least you don’t lose all that much money.

Keeping Emotions in Check

The other thing that you need to be able to do, something that all professional traders do very well, is to keep your emotions in check. Folks, emotions have no place in trading, none whatsoever. Trading is all about logical thought and reasonable deduction. Nothing more, and nothing less.

If you are on a winning streak, don’t get too overzealous, happy, and start placing huge trades, because losses are always around the corner.

On the other hand, don’t be too discouraged if you lose a few trades, because there are always greener pastures ahead. Stay calm, cool, and collected, and if you are using a proven trading strategy, stick to it. Remember folks, consistency is key.

Trading as Professional Traders Do – Final Thoughts

The bottom line is that if you want to emulate the results that real professional traders can achieve on a daily basis, starting with the above rules and tips is definitely a good way to go.

If you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.  

CLICK BELOW TO JOIN INCOME MENTOR BOX AND START MAKING REAL PROFITS!